The auction of the Tara coal block in Chhattisgarh does not mean mining can begin, with the successful bidder still required to obtain a mining plan, mining lease, forest and environmental clearances and other statutory approvals, the Chhattisgarh Mineral Development Corporation (CMDC) said on Saturday.
The clarification comes amid reports raising concerns over the auction of the block in the ecologically sensitive Hasdeo-Arand region. The opposition Congress said in a statement on September 10 that the allocation of the said coal block to a subsidiary of Adani Enterprises would lead to the destruction of dense forest areas in the region.
CMDC said only the competitive auction had been completed and that no tree felling or actual mining activity could take place before the requisite approvals. Nine bids were received for Tara, and the block was awarded to CG Syn&Gas and Chemicals Ltd.
CG Syn&Gas and Chemicals Ltd is a wholly owned subsidiary of Mundra Synergy Ltd, which in turn is a wholly owned subsidiary of Adani Enterprises, according to the statement from Congress.
The corporation said the successful bidder would have to complete the prescribed approval processes before commencing operations.
“Merely emerging as the successful bidder in an auction does not automatically confer mining rights or forest and environmental clearances upon the company,” CMDC said.
The corporation said the auction, grant of forest and environmental clearances and permission to undertake actual mining were separate stages.
Environmental impacts would be assessed according to prescribed norms, while forest-clearance procedures would also have to be completed.
CMDC also sought to put the current auction in the broader context of coal development in Hasdeo-Arand, saying the process had been underway for several years.
The Tara block was originally allocated to CMDC in 2011, but its allocation was subsequently cancelled along with those of other coal blocks following a Supreme Court order.
The corporation said the region’s environmental-clearance history also predates the current process. In 2011, despite an adverse recommendation by the Forest Advisory Committee, the then Union Ministry of Environment and Forests decided to grant forest clearance in relation to Tara and the Parsa East Kete Basan (PEKB) coal block. PEKB subsequently received Stage-I forest clearance in July 2011 and Stage-II clearance in March 2012.
CMDC said coal allocation in Hasdeo had also been pursued during the previous Chhattisgarh government’s tenure, with correspondence with the Centre in 2019 and 2021 and a private member’s resolution on coal blocks in the region passed by the state Assembly in 2022.
The corporation said the Morga coal block was another Hasdeo asset whose allocation remained under consideration. The previous state government had sought its allocation to CMDC and said it would approach the environment ministry for the necessary approvals after allocation.
CMDC also cited an ICFRE study of Hasdeo-Arand that assessed biodiversity, wildlife, catchment areas and environmental sensitivity. According to the corporation, the study identified Tara and certain other blocks as potentially suitable for mining, subject to stringent environmental safeguards.
CMDC reiterated that mining at Tara had not commenced and would begin only after all prescribed statutory approvals were obtained. It said the process would seek to balance the country’s energy security and the state’s development needs with forest and environmental conservation and the interests of local communities.
