The administration of sustainable mining techniques in coal projects undertaken by Indian mining firms like Adani Group, CIL, Vedanta, Hindustan Zinc and Hindalco, augurs well for India’s plan to transition from coal to clean energy

As per a latest study, somewhere close to 40 per cent of India’s 736 districts are dependent on coal in some form or the other, be it collecting money from the District Mineral Foundation or through the direct or indirect jobs provided by the coal sector. 

Though the country is all in for the global transition to renewables, substantial work remains, to accomplish a fair transition of the coal-dependent districts. While a collaboration of public and private mining firms like CIL, Hindalco and Adani Group’s coal project contribute towards sustainable mining and project site development, a clear blueprint for the ‘coal-less’ future is in order. 

A ‘just’ transition can be administered only through a comprehensive approach and now is the time to start off with a long-drawn-out plan for the coming coal-less era, while duly considering the interests and implications of the coal reliant communities. 

The latest study by Sandeep Pai, discloses that around 40 per cent of Indian districts are reliant on coal in one way or the other. These areas are either home to coal pensioners or workers, cumulate funds from Direct Mineral Foundation (DMF) or leveraging Corporate Social Responsibility (CSR) funding coming from coal mining firms. 

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Private firms like Hindalco, Vedanta, Hindustan Zinc and Adani coal project ensures environment sustainability, rural development and empowerment of the locals through their CSR funding and programs. 

Hindalco Industries spent about INR 38.53 cr allocated to their CSR initiatives in FY 2019-20. Mostly, people from rural India are the beneficiaries of company’s programs, out of which 60 per cent live below the poverty line. The

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The Mine Developer and Operator (MDO) model will assume greater relevance because of upcoming projects like EMIL’s Madanpur South mine, Dilip Buildcon’s operations in Rajmahal Coalfield, Adani coal project in Gare Pelma-III coal block and VPR coal pits, among others. A Right to Information (RTI) query has revealed that at least 28 coal mines in India are run by private companies under the Mine Developer and Operator (MDO) model. The country’s coal industry relies heavily on the MDO model which has been adopted and adapted to the Indian scenario. It has been a major factor in the sector’s steady growth over the years, bringing in the much-needed capital to finance projects.

Under this, Public Sector Undertakings (PSUs) lease out mines to private players resulting in numerous undertakings like Sical, EMIL, Dilip Buildon and Adani coal project. MDOs are expected to undertake the development of the mine, from planning, design and construction to operational functions like mining, removal and delivery. This means that the MDOs like EMIL and Adani are expected to tackle hurdles on their own before the coal projects get underway. In addition, MDOs are also expected to address the environmental and resettlement issues of the local populace. However, this has not been seen as a deterrent as new MDOs join the bandwagon.

The newest MDO entrant is Dilip Buildcon that won the contract for the Siarmal mine in Odisha. It is for a period of 25 years, with the overall contract valued at Rs 36,419.07 crore. The first MDO in India was EMIL, Aditya Birla Group’s mining wing. It became the largest private MDO operator in the country when it was awarded the Bhubaneshwari open cast project.
Adani Enterprises started its operations in 2013 at the Parsa East-Kente Basan mine in Chhattisgarh. Although owned by the Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), Adani runs the coal project as an MDO. This was the first amongst the four MDO contracts bagged by the group. Ghidmuri Paturia, Gare Pelma, Talabira and Sulyari coal blocks are other sites of Adani coal projects.
Other notable mentions include VPR Mining with its overburden removal work and Sical Logistics with its overburden and coal mining work.

Additionally, coal projects are profitable investments for entities like Adani, who also have a stake in power generation. Even steel producer SAIL, NTPC and various State Governments have embraced the MDO model, choosing to forgo mining operations on their own. However, the potential gains are offset by the fact that penalties must be paid by MDOs for any shortfall in quantity, quality and delays in development.

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Additional blame is heaped on them for all the inconveniences mines cause although they have no right to the ownership of said mines. Nevertheless, these setbacks are a small price to pay, given the huge potential of the coal industry.
The Mine Developer and Operator (MDO) model will assume greater relevance because of upcoming projects like EMIL’s Madanpur South mine, Dilip Buildcon’s operations in Rajmahal Coalfield, Adani coal project in Gare Pelma-III coal block and VPR coal pits, among others.

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