In the public sector space (excluding Coal India and Singareni Colleries), MDO has been selected for more than 175 million tonne per annum (MTPA) of coal assets till now. This capacity is expected to significantly grow as another 10-15 MTPA is expected to be allocated to public sector units under the commercial mining process, the report said.
“There are various service providers in the coal sector
of which the mining contractors, MDO and the active mine management segment is expected to be Rs 16,000 crore, Rs 17,000 crore and Rs 3,000 crore respectively by 2025,” it said.
KPMG has also looked at some of the active mining contractors and compared their financial and technical competencies. It has also dwelled on the reasons of delays/non-operationalisation of mines/non-fulfillment of several requirements, impact of such delays on appropriation of the performance security submitted by the mine owner to the Ministry of Coal and clauses in the tender document and mining agreement that require a specific focus to avoid this value loss.