Pelma to become SECL's first opencast mine to produce coal under MDO mode

SECL’s Pelma Mine will become the first open pit mine in Chhattisgarh under MDO (Mine Developer and Operator) mode. South Eastern Coalfields Limited (SECL) has signed an agreement with Pelma Collieries to operate the Pelma open pit mine located in the Raigarh area.

Under the agreement, Pelma Collieries will operate the mine for the next 20 years, under which time Pelma Collieries will be responsible for all activities related to the design, financing, procurement, construction, operation and maintenance of the project. A total of more than 219 million tons of coal is proposed to be extracted from the mine over a 20-year period, with an annual target of 15 million tons of coal. High quality G-12 grade coal will be extracted from the mine.

MDO mode is a new concept of mining whereby the government and private enterprises will work together to meet the energy needs of the country. This will contribute to the expansion of SECL’s coal production and play an important role in achieving the 1 billion tonne production target of Coal India.

SECL has managed to start its old closed mines in MDO mode. Ketki UG of Bishrampur area has achieved the distinction of becoming the first coal mine in India to produce coal in MDO mode. On the other hand, the letter of recognition was also issued to the Kalyani UG mine of Bhatgaon area for operating it under the MDO revenue sharing model. Besides this, SECL is also working to launch other projects in MDO mode.

SECL Raigarh area is a strategically important coalfield in terms of coal reserves and the area will contribute significantly to the total SECL production in the near future. It is the third largest coal field in the country with an estimated coal reserve of around 1900 million tons. SECL is also developing a rail corridor in this area for rapid coal evacuation.

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