Northern Coalfields Limited (NCL), a key subsidiary of Coal India, is embarking on a significant rehabilitation and resettlement (R&R) project to relocate the residents of Morwa township in Singrauli district. This ambitious move is aimed at unlocking 600 million tonnes (MT) of coal reserves currently beneath the 927-hectare township.

The project is estimated to cost over Rs. 20,000 crore and will involve the displacement of approximately 30,000 families and the demolition of over 22,000 structures. The land to be vacated comprises 572.5 hectares of private land, 205.8 hectares of forest land, and 149.3 hectares of government land.

According to NCL CMD B. Sairam, the relocation is imperative as the Jayant coal mine is nearing the township which poses a significant risk to mining operations within the next two years. The Jayant block's production capacity is slated to increase from 30 MTPA to 35 MTPA by 2026-27.

Negotiations with the affected residents have been ongoing for the past six months to finalize compensation packages and R&R benefits. The district administration is actively involved in facilitating the phased relocation process, with the disbursement of compensation expected to commence in May 2025.

Talking to the media at their Singrauli office, Sairam said, “The good thing is that in this acquisition, the people are ready to relocate. So half of the problem is solved because the first resistance comes from the people only.”

The initial phase of the relocation will focus on vacating the 572.5 hectares of private land. NCL has allocated a substantial portion of its FY25 capital expenditure, projected to exceed Rs.4,000 crore, towards land compensation.

"Based on the combination of past disbursements, the mandatory provisions and the call taken by the people residing in these areas and what is being given by the private commercial coal blocks coming up in the region, we have been able to reach a consensus and all the parameters of compensation and R&R are firmed up," he added.

NCL, which produced 136.2 MT of coal in FY24, aims to increase its output to 139 MT in the current fiscal year. As a major contributor to India's coal production, accounting for 14% of the total output and 10% of the nation's electricity generation, the company operates 10 mechanized opencast mines across Singrauli (Madhya Pradesh) and Sonebhadra (Uttar Pradesh).

This relocation project underscores NCL's commitment to expanding its operations and ensuring a steady supply of coal to meet India's growing energy demands.