THE Government of India (GoI) and the Chhattisgarh Government have jointly cleared the way for commencement of coal production at the Gare Pelma Sector-II coal mine in Raigarh district, with Maharashtra State Power Generation Company Limited (MAHAGENCO) designated as the project operator. This decision forms part of the Centre’s national strategy to strengthen energy security while advancing Chhattisgarh’s regional development goals. All statutory clearances required for large-scale coal mining, including mining lease execution, environmental compliance, and forest diversion approvals, have been completed through coordinated efforts of the Union and State authorities. According to senior officials from MAHAGENCO and the Chhattisgarh administration, the Gare Pelma Sector-II block holds an estimated coal reserve of 655.15 million tonnes, with an annual peak production capacity of 23.6 million metric tonnes.

 

 

MAHAGENCO is deploying an investment of Rs 7,463 crore into this venture, which is positioned to cater to the thermal power generation demands of Maharashtra and contribute to India’s broader energy requirements by enhancing domestic coal availability and reducing dependency on imports. Top officials from the project management team confirmed that Chhattisgarh is projected to receive Rs 29,000 crore in cumulative revenue from this project through statutory collections, including royalties, District Mineral Foundation (DMF) contributions, Goods and Services Tax (GST), and other levies over the life span of the mine.

 

The project is also expected to create approximately 3,400 direct employment opportunities in mining operations, while generating extensive indirect livelihoods in logistics, infrastructure development, construction, supply chain services, and ancillary sectors. A comprehensive Environment Management Plan (EMP) has been incorporated into the operational blueprint, with specific focus on afforestation, green belt expansion, water conservation, pollution control, and post-mining land reclamation. In parallel, a structured rehabilitation and resettlement programme is underway for 3,296 families across 14 affected villages. Senior officials from the District Administration of Raigarh stated that this resettlement process is being implemented under a transparent and inclusive policy framework, ensuring livelihood support, access to basic services, and improved community infrastructure. Recalling the project’s regulatory journey, officials from MAHAGENCO, the Ministry of Coal, and the Chhattisgarh State Government jointly outlined that the coal block was allotted by the Ministry of Coal, Government of India, in 2015. The mining lease application was subsequently filed the same year. The mining plan received formal approval in 2016, followed by the submission of the Environmental Clearance (EC) application on April 12, 2016.

 

A detailed public hearing was conducted in 2019 to address environmental and social concerns of local stakeholders. The project secured its final Environmental Clearance on August 13, 2024. Forest-related permissions were obtained in two stages-Stage-I on June 2, 2022, and Stage-II on January 27, 2023 –culminating in the final forest clearance issued by the Chhattisgarh Government on August 27, 2024. Senior officials from the Central and State levels also clarified the collaborative framework that enabled this project’s progress. The Ministry of Coal allocated the block, while the Ministry of Environment, Forest and Climate Change granted environmental and forest clearances through its respective divisions. The Ministry of Railways is indirectly engaged in supporting the coal evacuation logistics. On the State side, the Chhattisgarh Forest Department issued the final forest clearance, while the Chhattisgarh Environment Conservation Board conducted the mandatory public hearing. The Revenue Department of Chhattisgarh has overseen land acquisition, compensation, and land-use facilitation. The District Administration of Raigarh is handling local-level coordination, rehabilitation, and public grievance redressal. On behalf of Maharashtra, MAHAGENCO is leading the project execution under the supervision of the Maharashtra Energy Department, which is overseeing policy, financial, and administrative aspects.