Economic blockade pulls down Mahanadi Coalfields output

Daily output at Talcher fields down by 21,000 tonnes, leading to Rs 5 cr loss to state exchequer in two days

The economic blockade by local outfits have paralysed mining operations at Talcher coalfields of Mahanadi Coalfields Ltd (MCL), bringing down daily output by 210,000 tonne. The ongoing blockade has also led to loss of Rs 5.26 crore to state exchequer and Rs 20 lakh to CSR (corporate social responsibility) fund in two days, said an MCL release.

The disruption in MCL’s mining and transport operations may also lead to power crunch for consumers, especially in southern states.

The disruption began on Tuesday morning after local outfits resorted to economic blockade, forcing closure of mines and offices of MCL in Talcher Coalfields, blaming the company for delay in setting-up of a medical college and hospital. Work at the mines came to a grinding halt after MCL staff were forced to vacate the offices. This is for the third time in this fiscal that mining operations have been disrupted.

MCL, the second largest coal producer and major contributor towards social upliftment in Odisha had envisaged an ambitious CSR (corporate social responsibility) project of setting-up a 100-seater medical college with 500-bed hospital in Talcher at the cost of Rs 492 crore.

The coal company said it received land free from all encumbrances from the state government, only in December 2014 after pursuing the matter for over seven years. After getting the land, MCL has completed all necessary formalities.