Mahagenco’s mega coal project in Raigarh set to create wealth and jobs for thousands

🪙💲Rs 35 lakh per acre offered to landowners
⛏️Rs 7,500 crore investment for mining and allied works
🌳5.6 million trees to be planted for ecological balance
By : Akshay Lahre
Raigarh, Chhattisgarh : A sweeping change is on the horizon for 14 villages in Tamnar tehsil as Maharashtra State Power Generation Company Limited (Mahagenco) begins groundwork for its ambitious Gare Palma Sector II coal mining project. Close to 4,000 families stand to benefit from unprecedented compensation, employment opportunities and long-term rehabilitation measures linked to the Rs 7,500 crore investment.
The coal block, spread across nearly 2,000 hectares of private land, is expected to yield 23.6 million tonnes annually, ensuring steady fuel supply to Mahagenco’s power plants in Chandrapur, Koradi and Parli. With more than 3,200 MW of generation capacity supported, the project is being seen as a critical contribution to India’s energy grid.
Local enthusiasm has been growing since early August when delegations from seven affected villages petitioned the district administration for swift acquisition. “This is about more than money; it is about a future with dignity and jobs,” said a villager from Dholnara. Another farmer from Saraitola noted that the package would allow him to build a new home and send his children to better schools.
The compensation scheme promises landowners Rs 35 lakh per acre, alongside a rehabilitation and resettlement package worth Rs 2,435 crore. This includes housing, civic amenities and community infrastructure intended to provide sustainable living standards for displaced households. The project is also expected to generate 3,400 direct jobs, while thousands more will be created in services and small businesses that will emerge in response to rising demand.
Mahagenco has also committed to substantial ecological safeguards. Over the mine’s 32-year life, 5.6 million saplings will be planted across 2,256 hectares with a dense plantation model using native species. The effort is aligned with the company’s wider sustainability policy.
According to a senior Mahagenco official, the mine represents “one of the most significant coal sector ventures in the country.” He confirmed that revenues to state and central governments are projected to touch Rs 30,000 crore through taxes and royalties, while 2% of company profits will be directed to corporate social responsibility projects in the region.