MDO (Mine Developer and Operator) mode

MDO (Mine Developer and Operator) mode

MDO (Mine Developer and Operator) mode


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


GS – 03 (Mineral & Energy Resources, Energy Security)

MDO Mode: Revolutionizing Mine Operation

  • The Mine Developer and Operator (MDO) mode represents a fresh approach to mine operations, aimed at efficiently fulfilling the nation’s energy needs.
  • In this model, the responsibilities of designing, financing, procurement, construction, operation, and maintenance of a mine are taken on by private enterprises.
  • Pelma Collieries, under the agreement with SECL, will undertake the operation of the Pelma opencast mine for the next two decades.

Pelma Opencast Mine:

  • The Pelma opencast mine, situated in the Raigarh area, is poised to become a trailblazer in this endeavor. This collaborative effort will span 20 years and entails the extraction of over 219 million tonnes of coal, with an annual target of 15 million tonnes.
  • The mine is anticipated to yield high-quality G-12 grade coal, a valuable resource for the nation’s energy sector.

Impact on Coal Production and National Goals:

  • SECL’s adoption of the MDO mode holds the promise of boosting coal production and contributing to the realization of the ambitious goal of achieving 1 billion tonnes of coal production set by Coal India.
  • This innovative approach allows for a symbiotic partnership between the government and private entities, fostering efficient resource utilization and energy security.

SECL’s Successful Initiatives:

  • The Ketki UG mine in the Bishrampur area has achieved a significant milestone by becoming the first coal mine in India to produce coal under the MDO mode.
  • The Kalyani UG Mine of Bhatgaon area has been awarded the Letter of Award, signifying its transition to MDO operation under a revenue-sharing model.