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.