Chhattisgarh, a relatively young state that is bursting with progress and growth, has seen immense opportunities for development and business. According to IBEF, the Gross State Domestic Product (GSDP), of Chhattisgarh is Rs 3.62 trillion (US$51.39 billion) for 2020-21. This change has been triggered by long-term investments in Chhattisgarh’s mining sector by Adani Group Chhattisgarh and Thriveni Earthmovers, Hindalco Industries Ltd., Vedanta Ltd., and other corporate giants. This trend was made more relevant by the government’s efforts at increasing transparency, competition, and participation from the private sector.
Private players are helping to unlock the potential of the coal mining sector in resource-rich states such as Chhattisgarh, thereby encouraging India’s self-reliant spirit. Among the top names are Adani Group and Hindalco Industries Ltd. Vedanta Ltd.
RTI data shows that the state’s coal sector has contributed significantly to its economy. Between 2015 and 2020 33 mining awards were won by private parties, while 49 were given to PSUs.
This development is part of the government’s plan to auction 67 commercial coal mines in the second tranche. This is the largest number of mines that have been offered up for auction since 2014 when the auction system was first established.
According to official statistics, Chhattisgarh ranks among the most prosperous Indian states in terms of mineral resources. It holds approximately 17% of India’s coal deposits and the third-largest coal reserve. It is becoming a top business destination. The state is driven by several key factors that are essential for business development, including adequate infrastructure facilities and abundant mineral resources.
A number of private and public players are working together to develop coal mines within the region, given the enormous potential for the sector. Adani Enterprises Limited, a subsidiary of Gare Palma II Collieries Pvt Ltd signed a coal mining contract with Maharashtra State Power Generation Co Ltd. (MAHAGENCO) to develop and operate the Gare Palma sector II coal mine in Chhattisgarh. The contract period covers mine development and closure.
Adani Group was a mine developer-cum operator (MDO) for Parsa East Kente Basan’s mine in Chhattisgarh. This was through its flagship entity. Rajasthan Rajyut Utpadan Nigam Ltd owned the mine, which was a Rajasthan-run power generation utility. This block was used to supply coal to Rajasthan’s state electricity board power plants. It is possible that the state will experience a surplus of power after the coal supply.
Apart from the Adani Group, Thriveni Earthmovers received a contract for Rs 31.43 bn ($430m), from NTPC, an Indian state-owned energy conglomerate. The annual production capacity of the coal mine is 18 million tonnes.
Sarda Energy and Minerals Ltd won the bid for Gare Palma IV/7 in Chhattisgarh during the first tranche of commercial coal. The mine, which has a geological reserve of approximately 234.205 million tons, was quoted by the company at 66.75% revenue share.
India’s coal demand is expected to rise to 1,123,000,000 tonnes (mt) by 2023. Adani Group Chhattisgarh and Vedanta, BALCO, and other prominent private players will play an important role in meeting the demand and increasing the potential of India’s coal mining industry.