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Adani begins coal MDO operations in India


Adani Enterprises, the flagship company of the Adani Group, today announced commencement of its ambitious integrated coal mine developer cum operator (MDO) perations with the start of coal production at the Parsa East-Kanta Basan mine in Chhattisgarh, owned Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), a state-run power generation utility of Rajasthan.


This is the first amongst the four MDO contracts bagged by Adani Enterprises and marks the beginning of Adani Group's "Resources" business vertical in India. The company has outlined a phased capital outlay of Rs 3,000 crore for the entire block. With this development, Adani Enterprises is set to emerge as the largest private coal miner with access to produce coal of up to 90 million tonnes and reserves of over 3 billion tonnes over next 30 years, enough to produce about 18,000 megawatts of electricity by state electricity boards.

Gautam Adani, Chairman, Adani Group said, "The commencement of coal mining at Parsa Kente is a milestone event in coal mining sector. With this we at Adani rededicate ourselves to work resolutely towards energy security of the country."

The Parsa East- Kanta Basan block is located in Chhattisgarh and was awarded to RRVUNL in 2007. RRVUNL issued a tender seeking MDO services which was bagged by Adani Enterprises. The contract is now being executed by Adani Mining, a 100 percent subsidiary of Adani Enterprises. The block holds reserves of over 450 million tonnes of coal and will produce 2 million tonnes a year initially to be ramped to 15 million tonnes a year from 2017 onwards.


As per the contract, Adani Mining will also set up a coal washery, a coal handling plan and railway siding infrastructure to transport the coal at the doorstep of RRVUNL's fuel-starved power plants in Rajasthan.The washed coal from Parsa East- Kante Basan block will be of a superior quality and will help RRVUNL run its power plants at a plant load factor of over 95 percent and will make the state power surplus from its current situation of being electricity deficient and massive load shedding.

Read more about: adani enterprises
Story first published: Monday, April 8, 2013, 12:23 [IST]
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