Mahan Coal Limited is a 50:50 joint venture (JV) firm of Aditya Birla Group flagship
Hindalco Industries and Essar Power. It is is all set to start coal mine development
at the Mahan block of Singrauli fields in Madhya Pradesh.
Coal produced by MCL will fuel the proposed power plants of both Essar and Hindalco.
Essar Power is investing Rs 4,000 crore for a 1,000MW power project in the state,
while Hindalco is setting up a 750-MW captive power plant with an estimated investment
of Rs 2,400 crore.
Both greenfield power plants are expected to start production by 2011. To source
coal for the power plants, both companies had signed a shareholders' agreement and
As per the lease agreement, Essar will use 60% of the coal output and Hindalco will
take the remaining 40%. The mine, with proven reserves of 150m tonne of coal, will
cater to the combined Rs 6,400 crore power projects being set up by the two conglomerates.