Chhattisgarh Mining Protests Highlight Major Flaws in Coal & Mineral Block Auctions

Chhattisgarh has seen a surge of large-scale protests in recent months against several coal and mineral mining projects, spotlighting deep-rooted deficiencies in the current auction and development process for mining blocks. Demonstrations have targeted key sites including Coal India Ltd’s Amera extension coal project in Surguja, the Purunga and Tamnar coal blocks in Raigarh, and limestone mining operations by major cement and aluminium companies. Similar resistance has emerged in other mineral-rich states, raising questions about the sustainability and social acceptability of India’s commercial mining push.

The core issue lies in a critical procedural disconnect: mining blocks are auctioned and awarded to successful bidders—often after they pay substantial upfront premiums and commit to long-term investments—without first securing essential statutory, land, and social clearances. Corporate stakeholders argue that tender documents frequently lack detailed khasra-wise land records, ownership verification, and clear demarcation of private, government, and forest land. Responsibilities such as obtaining No Objection Certificates (NoCs) from departments including forests, railways, irrigation, revenue, and mining, along with Gram Sabha consultations and panchayat approvals, are shifted entirely onto the winning bidder post-auction. This leaves companies vulnerable to prolonged administrative delays, local opposition, and politically motivated agitations beyond their control.

Despite generous rehabilitation packages for affected families—including housing plots (300–600 sq m), house construction aid, livelihood support, transport allowance, resettlement grants, employment options, lump-sum payments, or pensions—the backlash persists. Public hearings, a mandatory step for environmental and social clearance, are increasingly disrupted or cancelled, often amid allegations of vote-bank politics, misinformation campaigns, and demands for extra concessions by local leaders from both ruling and opposition camps. While genuine environmental and livelihood concerns exist, many stakeholders view repeated organised disruptions as manufactured unrest that undermines development.

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Officials, speaking anonymously, acknowledge the urgent need for national-level policy reform. They advocate making pre-auction preparedness mandatory: completing Gram Sabha consultations, land verification, inter-departmental NoCs, and other statutory clearances before blocks are put on the block. Stronger legal safeguards for public hearings—balancing the right to lawful protest with measures to prevent systematic sabotage—and accountability mechanisms for repeated disruptions are also recommended. Until these structural gaps are addressed, protests are likely to continue stalling critical mineral projects essential for energy security and industrial growth.

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