New Delhi: State-owned Coal India Ltd (CIL) has proposed significant changes in model document for engaging Mine Developers and Operators.

The model concession agreement for MDOs in CIL is being finalised by the government.

The changes proposed by CIL include deletion of the provision for assigning of agreement in certain circumstances through a substitution agreement, an official document said.

The differentiation between allocation of costs on account of force majeure, 'prior to' or 'after' the appointed date, has been removed, it said.

"Major changes in the termination payment have been made which do not bring any obligation to take care of debt due etc," the document added.

In the Budget 2013-14 an announcement was made for public private participation (PPP) with Coal India for augmenting coal production in the country.

A Committee was set up under the Chairmanship of Secretary, Coal, in March last year with representatives from Planning Commission, Ministry of Finance (DEA), Ministry of Labour and Employment and Ministry of Law and Justice.

A number of meetings were held and the committee deliberated on various models, including engaging of MDOs.

The demand and supply gap of coal increased by 17.9 per cent to 171 million tonnes (MT) in the last fiscal.

The import of dry fuel rose at a time when CIL, which accounts for over 80 per cent of the domestic production, missed its output target in the last financial year.

CIL produced 462 MT in the financial year ended March 31, 2014, against a target of 482 MT. In 2012-13, CIL produced 452.5 MT coal, short of the goal of 464 MT. --- PTI