Industries have flocked to states which have huge deposits of natural resources. Chhattisgarh State is a major attraction being rich in various minerals and coal. The State has nearly 56 billion tons of coal i.e. nearly 18% coal reserves of the Nation. South Eastern Coal Fields (SECL), a subsidiary of Coal India Ltd with a production target of 165 million tons produces nearly 25% of the Nation’s total production. Out of the 165 million tons, the State requires only 32 million tons of coal annually for captive power-based industries which is only 19% of S.E.C.L.’s production.
Due to this massive coal reserve, more than 250 units have set up their operations in the State with captive power plants having 4000 MW capacity
However, even this small requirement of 32 million tons is not being provided by S.E.C.L. and industries in the State are getting less than 50% of their requirement. This is because coal produced in the state is being sent outside the State which is not only starving local industries but also depriving the State exchequer of precious revenue.
Large industries have put up captive power generation facilities in the State with a whopping outlay of Rs 65,000 crores on the hope of getting 100% requirement of coal from the mines in the State. Shortage of coal supply to captive power houses have reached them to the edge of closure. Some units are already closed.