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NTPC Fined Rs 409 Crore for Illegal Mining in Jharkhand

The imposition of the Rs 409 crore fine underscores the need for strict adherence to environmental regulations in mining projects.

India CSR by India CSR
July 23, 2024
in News
Reading Time: 2 mins read
Mining

Photo: The Indian Express

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NEW DELHI (India CSR): In a significant development, the National Thermal Power Corporation (NTPC) has been slapped with a hefty fine of Rs 409 crore by the Union Environment Ministry. The penalty comes in response to illegal mining activities conducted in the Hazaribagh district of Jharkhand. Mine developer-cum-operator Thriveni-Sainik Mining Private Limited, entrusted with NTPC’s coal mining project, was found to have carried out operations on protected forest land and altered the course of a stream without obtaining prior approval.

Illegal Operations Uncovered

The Union Environment Ministry’s advisory committee revealed that Thriveni-Sainik Mining Private Limited operated illegally on 156 hectares of forest land. Additionally, they altered the direction of the Dumuhana stream, which was supposed to be preserved as a greenbelt area. These actions were in clear violation of the conditions set forth by the ministry when approving the mining proposal.

Fine and Penalties Imposed

The advisory committee has imposed a fine of Rs 409 crore on NTPC for these violations. The Jharkhand Government had already levied a penalty of Rs 857 crore on NTPC for similar offenses. However, NTPC has sought a waiver of this fine from the ministry. The Centre has now requested a detailed response from the Jharkhand Government on the matter.

Conditions of Approval Ignored

When the ministry approved the mining proposal, it stipulated that the stream must be protected and a greenbelt developed along its sides. Despite these conditions, the user agency disregarded the directives and engaged in illegal mining. The regional office of the ministry reported that the impacted area was significantly larger than initially stated by the Jharkhand Government.

Displacement and Protests

The mining project has faced considerable opposition from local villagers in Hazaribagh who were displaced due to the operations. In May 2016, there were large-scale protests against land acquisition, highlighting the ongoing conflict between developmental projects and local communities.

Environmental Impact

The alteration of the Dumuhana stream’s course has significant environmental implications. The stream was meant to be a protected greenbelt, ensuring ecological balance in the area. The advisory committee criticized the user agency for its total disregard of these environmental conditions.

The imposition of the Rs 409 crore fine underscores the need for strict adherence to environmental regulations in mining projects. As the NTPC seeks a waiver, the ongoing review by the Centre and the Jharkhand Government’s detailed response will be crucial in determining the future course of action. The situation also highlights the broader issues of environmental sustainability and community displacement in India’s developmental agenda.


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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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