ECL Revives Mines via Revenue Sharing Model

Kolkata, Nov 1 (PTI) Union Coal Minister G Kishan Reddy on Saturday virtually inaugurated the operationalisation of Eastern Coalfields Ltd's two closed mining projects under the Mine Developer and Operator (MDO) revenue sharing model, marking a strategic shift aimed at reviving and consolidating its loss-making assets.

The Gopinathpur open cast and Chinakuri underground mining projects are among ECL's key initiatives to enhance production efficiency and attract private participation in coal mining operations.

The Gopinathpur open cast in Mugma area of Jharkhand's Dhanbad and the Chinakuri underground mine at Sodepur area in West Bengal's Paschim Bardhaman are the first two closed projects which had been offered the revenue sharing model by the ECL, its Chairman and MD Satish Jha said.

The initiative forms a key part of ECL's restructuring strategy under which 16 loss-making mines were amalgamated into 10 and offered to private operators through the MDO route.

ECL said the operationalisation of these two projects marks a “major milestone” in its cost reduction efforts, and is expected to strengthen its coal output and financial performance through a sustainable revenue-sharing framework.

The Gopinathpur open cast project has an extractable reserve of 13.73 million tonnes and a peak rated capacity (PRC) of 0.76 million tonnes per year. The MDO operator will share 4.59 per cent of the revenue with ECL, officials said.

The 25-year contract began with coal production on September 13, 2025.

The Chinakuri Underground Project, the company's first underground MDO project under the model, holds an extractable reserve of 16.70 million tonnes and targets a PRC of 1 million tonnes per year. The operator is offering an 8 per cent revenue share to ECL over the 25-year contract period, they said.