To strengthen its Mine Developer and Operator (MDO) framework, Eastern Coalfields Limited (ECL) strengthened its Chinakuri Underground (UG) Mine by signing a tripartite escrow account agreement with Innovative Mining Projects Pvt. Ltd. (IMPPL) and the State Bank of India (SBI).
Seated at ECL’s Sanctoria headquarters, the signing signifies the company’s ongoing commitment to enhancing financial governance and growing the structured MDO mining model. It is the second escrow-based financial structure for an MDO project within ECL.
An organised system for the safekeeping of funds for coal purchased through online auctions is established by the escrow mechanism within the MDO framework. The system promotes accountability and transparency along the value chain by directing sale profits to an escrow account, which reduces counterparty risk, improves financial supervision, guarantees timely remittances, and enables ongoing mining operations.
Shri Santanu Chakraborty, Head of Department (Fund), and Shri Shyam Sunder, General Manager (Finance) and Interim Chief Financial Officer (ECL), all of whom are associated with the company, and the agreement was signed on their behalf. Shri Navin Tulsyan and Shri Alok Kumar Agarwal, directors of IMPPL, and Shri Subhra Sarkar, chief manager of SBI Asansol, represented SBI, respectively.
The signing highlights ECL’s commitment to implementing strong financial systems that can sustain large-scale mining operations, improve transparency, and aid in the nation’s energy security.
