Mahanadi Coalfields Ltd (MCL) is facing significant losses as protests by displaced individuals have impacted coal production and transportation in the Hemgir block of Sundargarh district. The protest, led by residents from 14 affected villages, has disrupted the supply of approximately 100,000 tonnes of coal from MCL mines in Hemgir across the country. This disruption could have broader implications for power generation if it continues for an extended period.
The displaced persons are demanding prompt disbursement of land compensation in accordance with a recent Supreme Court order, as well as the settlement of Rehabilitation and Resettlement (R&R) benefits. They have been staging a protest at the Bankibahal road junction in front of the MCL’s Kulda open cast mine. A team of senior MCL officers held discussions with the protesters, but no resolution was reached.
The protest began on Sunday, with small groups of protesters gathering at various locations, including the MCL office at Tiklipada and the GM office of MCL’s Mahalaxmi Area. As a result, coal production at the Basundhara, Garjanbahal, and Kulda mines has come to a complete standstill. Additionally, coal transportation by road and rail has been severely affected.
MCL primarily supplies coal from Hemgir to power sector industries, followed by non-power sector industries. Although MCL has a production capacity of 36.6 Million Tonnes Per Annum (MTPA) from Garjanbahal, Basundhara, and Kulda mines, it has reportedly dispatched only about 34 MTPA in 2022-23.
In response to the protest, an MCL spokesperson stated that initial land compensation has already been provided to the majority of the displaced individuals. However, the protesters are demanding differential land compensation in line with the decision of the Supreme Court-appointed Claims Commission. MCL has filed an appeal in the Supreme Court, and it will abide by the court’s decision on the matter.
Rajendra Naik, president of MCL Basundhara-Mahalaxmi Bisthapith Suraksha Manch (MCLBMBSM), referred to a Supreme Court judgment from November 3, 2022. According to Naik, MCL is interpreting the judgment to suit its own needs and delaying the disbursement of compensation and settlement of R&R benefits. Displaced individuals have been suffering for 33 years, with MCL allegedly disregarding decisions made by the SC-appointed Claims Commission and the state government.
The ongoing protests and disruptions have raised concerns about the continuity of coal supply and its impact on power generation. It is important for all parties involved to engage in productive dialogue to find a mutually beneficial solution. Failure to resolve the issues may result in further losses for MCL and have broader consequences for the energy sector.
