A number of private companies are unlocking the potential for coal mining across resource-rich countries like Chhattisgarh to boost India’s self-reliance. The most prominent names include Adani Group, Vedanta Ltd and Hindalco Industries Ltd.
Chhattisgarh is a young state, full of growth and progress. It has witnessed tremendous opportunities for business development. IBEF estimates that the Gross State Product (GSDP), which is about Rs 3.62 trillion, will be worth US$ 51.39 Billion in 2020-21. These changes have been triggered by long-term investments made in the mining sector of Chhattisgarh, including by Adani Group Chhattisgarh. Thriveni Stonemovers, Hindalco Industries Ltd. and Vedanta Ltd. among other corporate titans. Given the government’s efforts in increasing transparency, competition and participation of the private sector, the trend took on greater significance.
The government plans to auction 67 coal mines under the second tranche of commercial mining. It is believed to be the largest auction of mines since the start of the auction regime back in 2014.
RTI’s information shows that the state’s coal sector has been a major contributor to its economy. Between 2015-2020, 33 mining awards were won at mines by private players and 49 to PSUs.
Official statistics indicate that Chhattisgarh is one of the most rich Indian states in terms of mineral resources. It has approximately 17% of the country’s coal deposits and ranks third in terms of coal reserves. The state is becoming a major business destination. It has several key factors for business development that include a strong infrastructure, abundant mineral resources, and diverse forest products.
Given the vast potential of the coal mining industry, many public and private actors are attempting to build coal mines in the area. Adani Enterprises Limited signed a coal mining deal with Maharashtra State Power Generation Co Ltd. The contract term is 34 years for mine development and mine closure.
Adani Group, through its flagship entity, was also a mine-developer-cum-operator (MDO) in the past for Parsa East–Kente Basan, a mine located in Chhattisgarh. Rajasthan Rajyut Utpadan Nigam Ltd, a Rajasthan state-run power generator utility, owned the mine. The block contained coal that was delivered to Rajasthan state electricity board power stations. It is anticipated that the state may experience a power surplus after the coal supply.
