In order to popularise use of heavy duty opencast machinery, Coal India (CIL) has decided to specify equipment sizes in all large mine development and operation (MDO) contracts, to be awarded in the future. The move is primarily aimed at reducing the environmental impact of mining. Use of high capacity equipment such as shovels and dump-trucks leads to greater fuel efficiency, lesser emission and reduces suspended particles in mining zone.

Coal India currently outsources nearly 60 per cent of its annual production from mining contractors. Majority of these contractors operate on labour cost arbitrage and use smaller equipment to keep capital costs low.

This apart, the strong transport cartels often force CIL to opt for sub-20 tonne tippers, cut out for use in road construction, in moving overburden (OB) material in company operated mines. This leads to under-utilisation of high capacity shovels.