In order to significantly increase coal production, decrease reliance on imported coal, and introduce cutting-edge technology into the mining sector, the Ministry of Coal has embarked on a transformative initiative to revolutionise coal mining. This initiative involves engaging Mining Developers cum Operators (MDOs) for major coal mine projects under the Coal India Limited (CIL) umbrella.
Mining Developers cum Operators (MDOs) are being brought in with the primary objective of dramatically increasing coal production through the simplification of operations, the enhancement of productivity, and the reduction of mining expenses. To increase the amount of coal that is produced domestically, these MDOs are entrusted with excavating, extracting, and delivering coal to Coal India Limited (CIL) in accordance with authorised mining plans. CIL’s goal is to modernise mining techniques and increase operational efficiency by forming partnerships with MDOs that are well-known for their sophisticated technological capabilities.
CIL identifies 15 coal mine projects
For the initial phase of the MDO implementation, CIL identified fifteen coal mine projects that had a total capacity of approximately 168 MT. Currently, there are a total of 28 projects, consisting of 18 opencast mines and 10 underground mines, with a combined capacity of around 257 metric tonnes. The awarding of 18 mines to prominent private parties marks a key milestone in this ambitious endeavour, which has been going on for quite some time. It is anticipated that the participation of these MDOs would result in significant contributions to the production of coal, which will guarantee both increased output and operational excellence within the industry.
According to the terms of the deal, these well-known operators will be in charge of overseeing the entire mining process, beginning with the excavation and extraction of coal and continuing all the way through to the delivery of the coal. Because of their participation, it is predicted that the system will receive cutting-edge technology and operational efficiency that has never been seen before, which will result in amazing enhancements to the capacities of production.
Various other plans of MDO
Managing important factors such as Rehabilitation and Resettlement (R&R) concerns, land acquisitions, and environmental clearances will be the responsibility of the MDOs, in addition to making production more efficient. To ensure that environmental regulations are adhered to in a stringent manner, they will also work with the State and Central Pollution Control Boards. For the purpose of assuring long-term stability and consistent advancements in mining operations, each contract with the MDOs will be for a period of 25 years or the life of the mine, whichever is shorter.
It is a key step towards modernising India’s coal mining business that the Ministry of Coal has adopted a policy to engage MDOs. It is the goal of Coal India Limited (CIL) to improve coal production capacity, increase operational efficiencies, and decrease reliance on coal imports by utilising the experience of reputed MDOs. This would ultimately contribute to India’s energy security and economic prosperity.
WorldAtlas has published a list of the top ten largest coal mines in the world, and the Gevra and Kusmunda coal mines, which are owned by South Eastern Coalfields Limited (SECL) and are located in Chhattisgarh, India, respectively, come in at number two and four. These two mines, which are situated in the Korba region of the state of Chhattisgarh, generate about 100 million tonnes of coal each annum, which is equivalent to around 10% of India’s entire coal production.
In fiscal year 23–24, the Gevra opencast mine produced 59 million tonnes of coal, well below its yearly output capability of 70 million tonnes. The mine began producing coal in 1981 and has sufficient reserves to cover the nation’s energy needs for the following decade.
In FY 23–24, the Kusmunda OC mine became the second Indian mine, after Gevra, to produce more than 50 million tonnes of coal.
In reference to this new achievement, the Chief Management Director of SECL, Dr. Prem Sagar Mishra, expressed that it is definitely a moment of pride for the state of Chhattisgarh that two of the five largest coal mines in the world are now located within the state. Mishra expressed his thanks to the Coal Ministry, the Ministry of Energy and Financial Coordination, the State Government, Coal India, Railways, and a variety of stakeholders, but most significantly, to the coal warriors who have laboured ceaselessly to accomplish this remarkable accomplishment.
Both Mines are Operated With High Tech Machines
The mining operations at these mines have made use of some of the most innovative and largest mining machinery in the world, such as the “Surface Miner,” which is designed to extract and chop coal without the need for blasting in order to make mining operations more environmentally friendly.
For the purpose of overburden removal, which is the process of removing layers of soil, stone, and other materials in order to expose the coal seam, the mines make use of some of the largest Heavy Earth Moving Machinery (HEMM) in the world. These include 240-tonne dumpers, 42 cubic meters Shovels, and Vertical Rippers, which are designed to remove overburden in a manner that is both environmentally friendly and blast-free.
What is WorldAtlas?
In 1994, when there were only around 2700 websites on the internet, geographer John Moen and his wife Chris Woolwine-Moen established WorldAtlas as a passion project. In addition to being backed by Reunion Technology Inc., WorldAtlas is run by an editorial and development staff that is diverse in background and experience. Their goal is to provide accurate data about the world derived from reliable sources.
India is a huge market for almost all types of products and services. The private players play a pivotal role in fulfilling the needs of this gigantic population. The business market of these private companies is growing huge day by day with the increase in demand for goods and services. Earlier, if a person wanted to buy a packet of edible oil, he might have 3-4 varieties. But now, it has increased to 30-40. The actual competition comes to the limelight, and only the superior brands providing the best quality survive here.
The Adani Group of companies is one of the largest private companies in India. It has a global presence in almost 50 countries. The Chairman of the Adani group is Gautam Adani. He is even one of the richest people in India. Adani group’s widespread business includes airport and seaport management, coal mining, power generation, Renewable energy production, edible oil production, food processing, etc. The company has its headquarters in Ahmedabad in the state of Gujarat in India.
Adani Group of companies came into existence in 1988 by Gautam Adani. He is also the Chairman of the group. Adani operates across India and overseas in several businesses such as Renewable energy production, maintaining port facilities, oil and gas production, mining, and food processing. The group is a private conglomerate with nearly 17,000+ employees in the year 2021. In April 2021, the company crossed 100 billion dollars in market capitalization.
The Adani Group operates coal mines in India. In addition to that, it also owns seaports such as Mundra port, Krishnapatnam port, Hazira port, etc. The group owns several solar farms in the country. These farms produce enormous amounts of electricity. Adani took up the responsibility of the operation of several airports in India- Jaipur, Guwahati, etc. The Adani group operates several Special economic zones in the country near to its seaports. The group is also involved in defence equipment manufacturing with its facility in Hyderabad. Apart from India, Australia is also one of the primary locations for the business operations of the Adani group. There are several other facilities in different countries.
Edible oil and food processing: Adani Wilmar produces the famous edible oil Fortune. It is the first choice of millions of Indians. Also, other food products under the brand name Adani Wilmar are Soyabean, rice, pulses, etc.
Adani Oil and Gas: Adani works jointly with Indian Oil works under the name of IndianOil-Adani Gas Pvt. Ltd. Also, Adani owns the Adani Total Gas system that connects cities as networks for the distribution of CNG and PNG.
Renewable Resources: Adani group Operates Adani Green Energy Ltd that operates solar parks and Wind farms in India. It provides pollution-free green energy-generated electricity to thousands of households.
Adani ports and logistics: Adani owns India’s largest private seaport Mundra Port that operates the world’s largest coal terminal. Adani provides logistics facilities to millions of tonnes of goods through sea routes as well as Land routes. Adani SEZ extends economic support to the country.
Mining: Adani operates Coal and iron ore mines. These mines produce valuable minerals that find utilization for power generation in thermal power plants and Steel production in Steel plants.
The primary consumers and customers of Adani Group is the Middle-class section of the society. They include the customers who purchase food products of Adani Group such as edible oils and Soya chunks. But, the Adani group works with large companies and the government. The deals in mining, oils and gases, Renewable energy, defence equipment are possible with the government and private entities. Then the logistics and ground departments of the group supply services to the local public.
Business Model of Adani Group
Adani Group Logo
Adani Group is an Indian multinational conglomerate. Adani Group has a diverse number of subsidiaries. Each of them has a different kind of Business model. But, the common business model for such a giant company is always aligning with the government’s interests. Adani Group has made some remarkable developments during the reign of many governments. It also follows acquisitions in the case of mining.
Apart from this, the rise in demand for renewable energy is fulfilled primarily by Adani in India as Adani owns chief solar properties in the Nation. From major industries to minor industries, the Adani group always tries to invest in a variety of Businesses to strengthen their business empire.
What’s unique about Adani Group’s Business Model
The uniqueness of the business model of Adani lies in the following secrets:
1. The Adani Group witnessed some developments in the stock markets as they became the third country to cross $100 billion in market capitalization.
2. The uniqueness in Adani’s business model includes a wide variety of businesses that bring profits from different sources as Adani invests in diversified businesses. It balances the profits and losses.
3. The Adani Group invests in the most profitable businesses such as renewable energy, oils, and gases. It is because these are in growing demand. Targeting the requisite fields of Work always brings profit at one point or the other.
4. Adani group invests not only in National projects but also in International projects. One such project includes a $7 billion coal mining project in Australia that has gone through high degrees of controversy. However, it turned out to be a highly profitable project for the group. Adani also owns ports in Australia that transports coal in Queensland.
How does Adani Group make money?
Adani group has a lot to provide to its customers, from food products to the cooking gas used for cooking them. The company’s chief source of revenue mainly comes from its six key companies. Adani imports coal and edible oils from foreign soils. This trade provides profit to the company as they sell them at bit profitable prices. Also, it owns a vast amount of cargo intake through its ports from which it gets money from shipping companies.
The Adani group gets orders from the government that leads to profits. It does this by working with the government in the defence and aerospace sector. International investments provide many parts of the revenue as it’s a global conglomerate. So, the overseas profit also matters a lot. Other sources of income mainly come from other diversified businesses in which the company has heavily invested.
Conclusion
After the Tatas and the Ambanis, the next name always comes up as Adani Group while counting for the most famous people in diversified businesses. Investing in different sectors always reduces the chances of heavy losses. It is because the sources of profits when maintained properly are always more than the one which brings losses. Adani group will expand further in upcoming years and the business empire of Adani will expand more and more with this pace of success.
FAQs
Who is the owner of Adani Group?
Gautam Adani is the owner of Adani Group.
What does Adani group do?
Adani Group operates in various sectors like:
Edible oil and food processing
Oil and Gas
Renewable Resources
Ports and logistics
Mining
What is the number of employees in Adani Group?
There are around 17,000 employees working for Adani Group.
Nitin Konde
