RAIPUR (India CSR): Maharashtra State Power Generation Company Limited (MAHAGENCO) is set to invest Rs 7,463 crore in the Gare Pslma Sector-2 coal mining project located in Tamnar, Raigarh district, Chhattisgarh. The project is expected to create 3,400 direct jobs and significantly contribute to the state’s economy.
According to the company, the coal block holds estimated reserves of 655.15 million tonnes, with an annual peak production capacity of 23.6 million metric tonnes. During the operation phase, the state government of Chhattisgarh is projected to earn around Rs 29,000 crore in revenue through royalties, district mineral funds (DMF), GST, and other statutory levies.
Regulatory Approvals Secured
The company confirmed that the project has received all necessary approvals from the central and state governments. The coal block was allocated to MAHAGENCO by the Ministry of Coal in 2015. Subsequently, the mining lease application was filed the same year, and the mining plan was approved in 2016. The Environmental Clearance (EC) application was submitted in April 2016, with the public hearing conducted in 2019. Final EC approval was granted on August 13, 2024.
Additionally, forest clearances were issued in two stages: Stage-I on June 2, 2022, and Stage-II on January 27, 2023. The final forest clearance was approved by the state government on August 27, 2024.
Economic and Social Impact
MAHAGENCO is Maharashtra’s leading power generation company and one of India’s largest state-owned power producers with a total installed capacity of 13,880.55 MW — nearly 73.5% of which is coal-based. The company supplies electricity to more than 20 million consumers across Maharashtra.
The Gare Palma project is designed with a comprehensive resettlement and rehabilitation (R&R) plan affecting 14 villages and covering over 3,296 families. MAHAGENCO has claimed that these families have actively participated in the resettlement process, which aims to provide them with better housing, employment opportunities, and access to essential services.
Apart from direct employment, the project will generate a substantial number of indirect jobs in mining-related services, logistics, infrastructure development, security, catering, and supply chains.
Commitment to Sustainability
MAHAGENCO has initiated multiple development programs in the project area, focusing on education, health, sanitation, infrastructure, livelihood training, and promotion of local culture. The company is also implementing a detailed Environmental Management Plan (EMP), which includes afforestation, green belt development, water conservation, pollution control measures, and post-mining land restoration.
Environmental Concerns
While the company touts the economic and social benefits of the project, it has come under scrutiny from environmental groups. Allegations have surfaced that over 6,000 trees were cut in the Tamnar forest area for the project. MAHAGENCO has not issued a public statement addressing these concerns in its latest press release.
Regional Importance
Raigarh district, known as the energy capital of Chhattisgarh, hosts several coal mining operations, including four active mines under South Eastern Coalfields Limited (SECL) and one open-cast project under a Mine Developer and Operator (MDO) model. The Gare Palma project is poised to enhance India’s energy security while aiming for a balance between industrial development and environmental conservation.
(India CSR)
