Mahan Coal Limited


Mahan Coal Limited is a 50:50 joint venture (JV) firm of Aditya Birla Group flagship Hindalco Industries Ltd. and Essar Power Ltd. It 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 Ltd is investing Rs 4,000 crore for a 1,200MW (2x600 MW) captive coal-fired pit-head power plant located in Singrauli district, Madhya Pradesh, while Hindalco is setting up a 900-MW captive power plant with an estimated investment of Rs 2,400 crore. Essar Power Unit I began commercial operations on April 29th, 2013

Both greenfield power plants are expected to start full production by this year. To source coal for the power plants, both companies had signed a shareholders' agreement and formed Mahan Coal Ltd. As per the lease agreement, Essar will use 60% of the coal output and Hindalco will take the remaining 40%.

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Mahan Coal Limited - An Example of Sustainable Development


Mahan Coal Ltd is committed to carry out the mining operations in a safe, efficient and environment-friendly manner, as it realizes that there are many important stakes riding on its success:
  • Steady and continuous supply of coal to the end-use plants
  • Economic viability of Rs 20,000 crore of investments having significant exposure of financial institution
  • Employment & livelihood for families around the mine & families depending on the end-use plant
  • The faith of everyone who believes that development and environment are not alternatives!