Mahanadi coal mining to be outsourced: CCEA

New Delhi, Sept 7: The Cabinet Committee on Economic Affairs (CCEA) today approved the floating of tenders for outsourcing coal production to the tune of 20 million tonne per year from Orissa-based Bharatpur Opencast Mining Project of Mahanadi Coalfileds Ltd (MCL).

The CCEA also approved floating of tenders to outsource incremental overburden removal corresponding to 9 million tonne per year (Mty) additional coal production for the first initial 5 years.

Proposal to float similar tender for the period of 10 years for the effecting economies due to life time utilisation of the equipment deployed by the outsourcing agencies was also passed by the CCEA.

It also gave a green signal to the floating of tenders for construction of CHP for 20 MTy capacity.

The opencast project is expected to produce 20 million tonne of grade F coal. The coal produced will be supplied to the linked customers like TPC and other state government owned thermal plant stations, an offical spokesman said.

UNI