Coal India Arm NCL to Relocate 30,000 Families for Access to 600 MT Coal Reserve—A ₹20,000 Crore Mega Project

Northern Coalfields Limited (NCL), a Coal India subsidiary, is preparing to relocate the Morwa township in Singrauli, Madhya Pradesh, to access 600 million tonnes of mineable coal beneath the area. This massive rehabilitation and resettlement (R&R) project will involve moving 30,000 families and 22,000 structures from the 927-hectare township.

Key Highlights:

• Reason for Relocation: The Jayant coal mine, which is expanding, is expected to reach within 500 meters of the residential area in two years, potentially disrupting mining operations.
• Land Involved: The relocation covers 572.5 hectares of private land, 205.8 hectares of forest land, and 149.3 hectares of government land.
• Estimated Cost: The project is expected to cost over ₹20,000 crore, including land acquisition and compensation.
• Consensus Achieved: NCL CMD B. Sairam stated that residents are willing to move, making compensation and R&R planning smoother. The first phase of compensation, covering 572.5 hectares, will begin in May 2025.

Expansion Plans:

NCL plans to increase the capacity of the Jayant coal mine from 30 MTPA to 35 MTPA by 2026-27. The company’s capital expenditure (capex) for land compensation will exceed ₹4,000 crore in the next fiscal year, compared to ₹2,500-2,600 crore in the current year.

Impact of NCL:

• Produced 136.2 million tonnes of coal in 2023-24, contributing 14% of India’s total coal production and 10% of the country’s electricity generation.
• Operates 10 mechanized opencast mines across Singrauli (MP) and Sonebhadra (UP).

This project underscores NCL’s efforts to balance community needs with India’s growing energy demands.