The proposal is to increase the capacity to 0.60 mtpa from 0.45 million tonnes per annum (mtpa) with an increase in mine lease area to 278.68 hectares from 128.79 hectares.
"The Union Environment Ministry has accorded the final environment clearance to Western Coalfields' Ghonsa mine expansion proposal," a senior government official said.
The green signal to the expansion project has been given subject to compliance of some conditions, the official said.
The Ghonsa mine carries a total geological reserve of 20.50 mt with a mineable reserve of about 4.90 mt.
The company will use open cast method of mining with Shovel-Dumper combination. The coal will be transported in pit by dumpers and the mine will produce processed ROM coal of Grade G-9.