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Prakash Industries Ltd has reached a major milestone by securing a 30-year mining lease for the Bhaskarpara commercial coal mine, located in Surajpur district, Chhattisgarh. The mining lease was officially executed by the state government on November 21, 2024, and was registered the following day, granting Prakash Industries exclusive coal mining rights for the next three decades.
In a filing with the stock exchange, Prakash Industries expressed its satisfaction with the development, stating, “The company is pleased to inform that the Government of Chhattisgarh had executed the mining lease yesterday, which has been duly registered today in favor of the company for mining of coal over a period of 30 years for its Bhaskarpara Commercial Coal Mine in District Surajpur.”
Operational activities are set to begin as early as next month, with the removal of overburden material, which will prepare the site for coal extraction. Coal production is expected to commence in the following quarter, a move that is projected to provide significant benefits to Prakash Industries’ integrated steel operations. By securing a stable, long-term coal supply, the company aims to reduce its raw material costs, strengthening its position in the competitive steel market.
The acquisition of the Bhaskarpara coal mine lease marks an important step for Prakash Industries as it looks to enhance its operational efficiency and achieve greater self-reliance in coal procurement. This strategic move is expected to bolster the company’s production capabilities and contribute to its growth in the years to come.
With the groundwork laid for coal mining at Bhaskarpara, Prakash Industries is well-positioned to meet its long-term energy and resource needs, ensuring a consistent supply of coal for its industrial operations.