Despite Rising Privatization, Government Mines Still Dominate in Chhattisgarh
• Share of tree felling higher among PSUs than private mining projects
Chhattisgarh |Despite a notable expansion of private players in the mining sector over the past five years, government-run mining operations continue to dominate the landscape in Chhattisgarh. Interestingly, it is the public sector undertakings (PSUs) and state-run units that are leading not just in scale, but also in environmental impact — particularly in the number of trees felled for mining clearances.
Currently, Chhattisgarh has around 95 operational mines extracting coal, bauxite, iron ore, and other minerals via both opencast and underground methods. Out of these, 62 mines are run by central PSUs, seven by various state PSUs, and 27 by private companies.
While private mining activity has increased in recent years due to liberalisation and competitive bidding, data show that the majority of tree-felling still stems from government mining projects.
According to the report titled “Status of Projects Approved under the Forest (Conservation) Act, 1980 – Chhattisgarh (as of July 2, 2025),” a total of 4,92,210 trees have been cut for mining-related projects. Of these, 3,24,924 trees (roughly 66%) were felled by PSUs and SPSUs, while private companies accounted for 1,67,286 trees.
One major PSU is responsible for felling over 77,000 trees across eight projects, with a single project involving the removal of over 38,000 trees — a number significantly higher than any individual private project. In comparison, the largest private deforestation event involved just over 27,000 trees.
While the ecological impact of private mining cannot be overlooked, the environmental burden clearly lies heavier on government-run mining operations at present.
Notably, while the Adani Group often finds itself at the center of political debate in Chhattisgarh, the group does not directly own any mining blocks in the state. One of its cement subsidiaries recently acquired a small mine, but apart from that, Adani’s mining presence in the state is limited to contractual operations, where it acts as a coal mining contractor — extracting coal for state-run power plants under competitive bidding agreements.
With the rising demand for coal and electricity, the situation underscores the need for a balanced policy — one that promotes economic development while prioritizing environmental conservation. As mining activity expands, strict ecological safeguards, including mandatory compensatory afforestation, reforestation, and rigorous environmental monitoring, must be enforced to ensure that Chhattisgarh’s forest wealth is preserved for the future.
