Tara Coal Block Auction: CMDC Clarifies Mining Process

Raipur, Sep 12 (PTI) The Chhattisgarh Mineral Development Corporation (CMDC) on Saturday said only the competitive auction of the Tara Coal Block in the Hasdeo-Arand region has been completed, and actual mining can begin only after obtaining all statutory approvals.



The block was awarded to CG Syn & Gas and Chemicals Limited which was one of the nine bidders, the state-run corporation said in a statement amid a controversy over the auction.

The Congress has criticised the auction, alleging that it amounted to an "ecocide" in the biodiversity-rich Hasdeo-Arand ecosystem. On Thursday, the opposition party alleged that CG Syn-Gas and Chemicals Limited is a wholly owned subsidiary of Mundra Synenergy Ltd, which in turn is a wholly owned subsidiary of Adani Enterprises Ltd.

The CMDC said that the successful bidder will have to obtain the mining plan, mining lease, environmental and forest clearances and other prescribed approvals before commencing mining operations.



"No tree felling or actual mining activity can take place before the requisite statutory approvals are obtained," the CMDC said.



The corporation further said the forest clearance process would have to be completed and the project's environmental impact would have to be assessed in accordance with prescribed norms.

The process of allocation and mining of coal blocks in the Hasdeo-Arand region was underway for several years, it said.



The Tara Coal Block was allocated to the CMDC in 2011. But the allocation was subsequently cancelled following a Supreme Court order, it said.



Other coal blocks in the Hasdeo-Arand region were linked to the requirements of government-owned power generation entities. The Parsa East Kete Basan (PEKB) block, for instance, was allocated to meet the power generation requirements of Rajasthan Rajya Vidyut Utpadan Nigam Limited, the CMDC said.



In 2011, despite an adverse recommendation by the Forest Advisory Committee, the Union Ministry of Environment and Forests decided to grant forest clearance for Tara and PEKB. The PEKB received Stage-I forest clearance in July 2011 and Stage-II clearance in March 2012, according to the statement.




The corporation said the previous (Congress) government in the state had also corresponded with the Centre in 2019 and 2021 regarding coal block allocation, keeping in view coal production and power supply requirements in the Hasdeo region.



In 2022, the Chhattisgarh Legislative Assembly also passed a private member's resolution concerning coal blocks in the region, it said.



The CMDC said the issue of coal utilisation in Hasdeo-Arand was not confined to Tara alone, with the allocation of the Morga Coal Block also remaining under consideration.



The previous state government had requested the Union Ministry of Coal to allocate the Morga block to the CMDC and had stated that, following allocation, it would approach the Union Ministry of Environment for necessary approvals, it said.

The corporation also cited a scientific study conducted by the Indian Council of Forestry Research and Education (ICFRE), which assessed biodiversity, wildlife, catchment areas and environmental sensitivity in the Hasdeo-Arand region.

According to the CMDC, the study identified Tara and certain other coal blocks as potentially suitable for mining, subject to stringent environmental safeguards and conservation measures.



The corporation said forest conservation and afforestation remained priorities of the state government and cited Forest Survey of India figures showing an increase of 683.62 square kilometres in forest area/cover in Chhattisgarh between 2021 and 2023.

It said every mining project would have to comply with environmental and forest clearance requirements, scientific studies, compensatory afforestation provisions and other prescribed safeguards.



The Press Information Bureau (PIB) had on Thursday said the Tara block, which was offered under the seventh tranche of commercial coal mine auctions in 2023, was subsequently excluded after the Chhattisgarh government requested that coal blocks in the Hasdeo-Arand area be kept out of commercial auctions.

Coal blocks overlapping the Lemru Elephant Corridor in the area were not offered in subsequent auction tranches, the PIB had said.



However, a letter dated December 11, 2025, from the Chhattisgarh government requested inclusion of the Tara block in an upcoming auction, stating that it was outside the Lemru Elephant Corridor.

The PIB said the Tara block was subsequently offered under the 15th round of commercial coal mine auctions after removing the influence zone of the Lemru Elephant Corridor, and was successfully auctioned.