The 20 million tonne capacity Bhubaneswari open cast coal project of Mahanadi Coalfields Ltd (MCL) at Talcher is facing closure due to land problems.
Against the normal daily production of 25,000 tonne, the mine is now producing only 6,500 of tonne of coal.
Bhubaneswari mine had produced 4 million tonne coal last year. But in April, the first month of the current fiscal, its output stood at only 82, 000 tonne of coal against the target of 5.8 lakh tonne. This is considerably less than nine lakh tonne achieved in March.
Sources said, the periphery of the mine has now reached the boundary of the surrounding villages and if more land is not made available for digging coal, then the mining operation in the area will come to a halt. Particularly, there is an urgent need to evacuate the nearby Zillinda village, they pointed out.
However, the villagers have refused to vacate their land demanding jobs in the coal company. According to a MCL official, the company has provided jobs to 239 displaced persons against the demand of 313. The process to give jobs to the rest people is on, he added.
He said, the rehabilitation site at Gurjang is ready with all amenities to lodge the displaced persons of Zillinda village.
But villagers are stubborn that they will not vacate the place unless all the people entitled for jobs are absorbed by the company.
The operation of this Rs500 crore coal project has been completely outsourced. Its production stood at 1.97 lakh tonne in 2007-08 and 1.84 million tonne in 2008-09.
