Coal India arm MCL may stop some mining projects in Odisha

Facing stiff resistance from villagers in some areas of Talcher in Odisha, Coal India arm Mahanadi Coalfields Ltd (MCL) today said it may have to close down some mining projects.
This may result in production loss of 12 million tonnes (MT) coal this fiscal, the company said in a statement.
Closure of mining operations at Jagannath Area, which has the production target of about 40 million tonnes (MT) for 2014-15, would mean snapping off fuel line to the power plants in Tamil Nadu, Telengana and Andhra Pradesh, it added.
"MCL may have to close down mining operations under its Jagannath Area in Angul district of Odisha in view of a few villagers refusing to vacate their structures in the mining zone close to edge of projects under operations and resorting to paralyse work at the two projects of one lakh tonne per day capacity from today," the company said.

At least 122 people in Hensmul village have refused to vacate structures/homestead land occupied by them despite continuous persuasion by the civil administration and company authorities and have called for paralysing two mega projects - Bhubaneswari OCP (open cast project) and Ananta OCP, it said.
The company needs urgently that land to expand Bhubaneswari OCP capacity to 25 MT and meet the targeted production given to the mines under Jagannath Area, as it has almost excavated coal from the existing location, it added.

"Even if villagers do not disturb our operations, but continue to occupy their dwellings in Hensmul village in the mining zone, the company would have no other option but to close down operations under Jagannath Area by October or November in view of safety norms.... This may cost loss of around 120 lakh tonnes coal production during the current financial year," the company said.

The company is ready to reinstate terminated workers provided they hand over vacant possession of land and pave way for mining, the statement said.
The company claimed that it is known for its most attractive Resettlement and Rehabilitation (R&R) package for affected people and extended several offers to the protesting people during three rounds of tripartite talks between the company management, civil administration and villagers following termination of 122 people from job, but all in vain.
It said company had already provided quarters to 79 of these 122 people and on the request of civil administration had also assured interim arrangement for the rest.

"However, villagers refused to handover possessions to the company, thus taking issue back to square one," it said.
A total 285 people of village were provided job in the company between 1995 and 2009 as part of compensation package against land and offered plots at nearby place called Gurjang.
While the rest had vacated houses/homestead land and shifted to the site, 126 refused despite final five-month notice. Subsequently, the company terminated service of 126 erring employees in May 2014. It reinstated services of four employees after their families shifted to R&R site.