Hindalco Industries Ltd., part of the Aditya Birla Group, has successfully resolved a land acquisition dispute for its Chakla Coal Project in Latehar district, Jharkhand, following detailed consultations with local villagers. Residents from Chakla, Hariyatoli, Nawatoli, and Ambuatanr have agreed to transfer their land, clearing a major hurdle for the greenfield coal mine.
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. The project spans 863 hectares, with an extractable reserve of 71.88 million tonnes and a peak capacity of 5.3 million tonnes per year. The mine forms a key part of Hindalco’s plan to secure captive coal supplies for its operations.
The dispute had delayed project progress, with villagers expressing concerns about compensation, rehabilitation, and the environmental impact of mining operations. More than 800 hectares of agricultural land were expected to be diverted, directly affecting local livelihoods.
Hindalco engaged in extensive dialogue with village representatives, offering assurances of fair compensation, rehabilitation packages, and environmental safeguards. The company highlighted its CSR initiatives, including Project Arogya for doorstep healthcare, Project Swalamban for skill development, and Project Nirmaan for rural infrastructure, such as solar-powered water tanks and community facilities.
A senior Hindalco official said, “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.”
Village representatives confirmed that the agreement included 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 one local leader.
The resolution now allows Hindalco to advance the Chakla Coal Project, expected to commence operations in the third quarter of the current fiscal year, pending final clearances. The project complements Hindalco’s existing operations, which include four other captive coal mines in Chhattisgarh, Jharkhand, and Odisha.
While the project marks a significant step for energy security and industrial growth, it comes amid ongoing scrutiny of mining projects in India, particularly regarding rehabilitation and environmental impact. Hindalco has emphasized its compliance with the Forest Rights Act and the Panchayats (Extension to Scheduled Areas) Act, aiming to balance industrial expansion with community welfare.
The Chakla Coal Project underscores the importance of stakeholder engagement in India’s resource-rich regions, demonstrating how dialogue and CSR initiatives can help reconcile development goals with local interests.
