SECL’s Pelma Mine to Begin Coal Production Under MDO Mode, Aiming for 219 Million Tonnes in 20 Years

TFP Bureau, News Delhi, August 25, 2023: In a significant move towards bolstering coal production and energy supply, the South Eastern Coalfields Limited (SECL) is set to inaugurate the operation of Pelma opencast mine under the innovative Mine Developer and Operator (MDO) mode. Pelma Collieries, in collaboration with SECL, has inked an agreement to undertake the operation of the Pelma mine located in the Raigarh area, marking a historic step in the mining industry.

Under the terms of the agreement, Pelma Collieries will lead all aspects of the project for the next two decades, encompassing the spectrum from project design, financing, procurement, construction, to operation and maintenance. The mammoth venture is projected to yield over 219 million tonnes of coal during this period, with an annual extraction target of 15 million tonnes. This opencast mine will focus on mining the coveted G-12 grade coal known for its superior quality.

The MDO mode, a pioneering approach, harmonizes governmental and private sector efforts to satisfy the nation’s energy demands. This partnership is poised to substantially augment coal production within SECL, playing a pivotal role in realizing Coal India’s ambitious goal of reaching a 1 billion tonne production mark.

SECL has already achieved milestones in this endeavor, reinvigorating previously dormant mines through the MDO model. Ketki UG of Bishrampur area has notably earned the distinction of being India’s inaugural coal mine to operate under the MDO framework. In a parallel development, the Letter of Award has been granted to Kalyani UG Mine of Bhatgaon area, adopting the MDO-revenue sharing paradigm. SECL is concurrently exploring further projects to implement the MDO mode.

The Raigarh area within SECL holds strategic significance due to its substantial coal reserves. Ranked as the third largest coalfield in the nation, it boasts an estimated coal reserve of approximately 1900 million tonnes. SECL is also engaged in the establishment of a dedicated rail corridor to expedite the coal evacuation process from this vital coalfield.

With this groundbreaking initiative, SECL’s Pelma opencast mine ventures into a new era of coal production, setting a precedent for collaborative and efficient mining practices that promise to fulfill the energy demands of the nation in the years to come.