Coal India’s NCL to Relocate MP Township to Tap 600 MT of Coal Reserves.

Northern Coalfields Limited (NCL), a subsidiary of Coal India, is undertaking a massive rehabilitation and resettlement (R&R) project to relocate the residents of Morwa township in Madhya Pradesh’s Singrauli district. The relocation will enable NCL to access 600 million tonnes (MT) of mineable coal beneath the 927-hectare township, according to company CMD B. Sairam.

The project, which involves relocating 30,000 families and 22,000 structures, is estimated to cost over ₹20,000 crore. The land to be vacated includes 572.5 hectares of private land, 205.8 hectares of forest land, and 149.3 hectares of government land.

“Relocation is essential as the Jayant coal mine is approaching within 500 meters of the township, which could impede mining operations within the next two years,” Sairam said. The Jayant block’s output is planned to increase from 30 MTPA to 35 MTPA by 2026-27.

Negotiations with residents have been ongoing for six months to finalize compensation and R&R benefits, taking into account past disbursements and provisions offered by private coal blocks in the region. The district administration is assisting with the phased relocation, with compensation disbursement expected to begin in May.

The first phase will vacate 572.5 hectares of private land. Details of financial implications are being finalized, with a significant portion of NCL’s capex for FY25—expected to surpass ₹4,000 crore—allocated for land compensation.

NCL produced 136.2 MT of coal in FY24 and aims to produce 139 MT in the current fiscal year. Contributing 14% of India’s total coal output and 10% of its electricity generation, the company operates 10 mechanized opencast mines across Singrauli (Madhya Pradesh) and Sonebhadra (Uttar Pradesh).

This relocation project marks a critical step in supporting NCL’s expansion and ensuring uninterrupted coal production to meet India’s growing energy demands.

HBL