Latehar, Jharkhand – Hindalco Industries Ltd., a leading aluminium and copper manufacturer under the Aditya Birla Group, has successfully resolved a land acquisition dispute for its Chakla Coal Project in Jharkhand’s Latehar district, marking a significant step forward for the greenfield coal mine. The villagers have given their consent for transferring their land to Hindalco during the meetings held today.
The Chakla Coal Mine, located in the North Karanpura Coalfield, was allocated to Hindalco in March 2021 through the Ministry of Coal’s e-auction under the Coal Mines (Special Provisions) Act. With an extractable reserve of 71.88 million tonnes and a peak capacity of 5.3 million tonnes per annum, the mine spans 863 hectares and is a key part of Hindalco’s strategy to secure captive coal supplies for its operations.
The project is currently in various stages of approval, with the Revised Mine Plan and Mine Closure Plan already approved.The dispute, which had delayed progress, centered on concerns raised by villagers from Chakla, Hariyatoli, Nawatoli, and Ambuatanr, who faced potential displacement due to the project’s land requirements.
Local residents had expressed apprehension over compensation, rehabilitation, and the environmental impact of the mining operations. Reports indicate that more than 800 hectares of land, including agricultural fields, will be diverted for mining, affecting the livelihoods of local communities.
After extensive dialogue, Hindalco engaged with village representatives to address these concerns. The company emphasized its commitment to corporate social responsibility (CSR), highlighting initiatives such as Project Arogya for doorstep medical services, Project Swalamban for skill development, and Project Nirmaan for rural infrastructure development, including solar-powered water tanks and community facilities. These efforts, combined with assurances of fair compensation and rehabilitation packages, were instrumental in gaining the villagers’ trust.
A senior Hindalco official stated, “We are committed to sustainable development and ensuring that the communities around our projects benefit from our presence. The resolution of this dispute reflects our dedication to working collaboratively with local stakeholders to create a win-win situation.”Local leaders confirmed that the agreement includes provisions for adequate compensation, alternative livelihoods, and measures to minimize environmental disruption. “The company listened to our concerns, and we reached a mutual understanding that safeguards our interests while allowing the project to move forward,” said a representative from one of the affected villages.
The resolution paves the way for Hindalco to advance the Chakla Coal Project, which is expected to bolster the company’s raw material security and contribute to India’s energy sector.
The project aligns with Hindalco’s broader operations, which include four other captive coal mines, such as Gare Palma IV/4 and IV/5 in Chhattisgarh and Kathautia in Jharkhand, alongside the Meenakshi Coal Block in Odisha.However, the agreement comes amid ongoing scrutiny of mining projects in India, with critics pointing to past instances of inadequate rehabilitation and environmental concerns.
Hindalco has emphasized its adherence to regulatory requirements, including the Forest Rights Act and the Panchayats (Extension to Scheduled Areas) Act, to ensure compliance and community welfare.The Chakla Coal Project is expected to commence operations in the third quarter of the current fiscal year, pending final clearances. The successful resolution of this dispute underscores the importance of stakeholder engagement in balancing industrial growth with community welfare in India’s resource-rich regions.
