The Business Bytes
TBB BUREAU
SAMBALPUR; FEB 07, 2024
The state of Odisha is endowed with a diverse array of mineral riches, and among its treasures lies coal, a vital resource that fuels the engines of industry and progress. This wealth of natural resources, coupled with the transparent and progressive policies championed by the Government of India under the esteemed leadership of Prime Minister Narendra Modi, has heralded a period of unprecedented growth and prosperity for mineral-rich states like Odisha. These policies have not only paved the way for a surge in revenue through royalty schemes but have also facilitated the responsible extraction of coal at a low cost, making coal mining in Odisha a lucrative venture.
At the forefront of this transformative journey stands Mahanadi Coalfields Ltd (MCL), one of the largest Public Sector Undertakings (PSUs) based in Odisha. With its operational footprint spanning across three districts – Angul, Jharsuguda, and Sundergarh – and its corporate office located in Sambalpur, MCL has emerged as a beacon of excellence in the realm of coal mining. Despite the growing momentum towards renewable energy sources, the insatiable demand for electricity nationwide has underscored the indispensable role of coal in meeting the nation’s energy needs, propelling MCL into a phase of dynamic expansion and innovation.
The surge in demand has fuelled a rapid escalation in MCL’s mining activities, with coal production surging from 148 million tonnes three years ago to an estimated 200 million tonnes in the current fiscal year. However, this meteoric rise in production has not come without its challenges. The environmental and social impacts inherent in coal mining – ranging from pollution caused by dust and gas emissions to disruptions in local ecosystems and communities – necessitate a steadfast commitment to sustainable practices and responsible stewardship of natural resources.
In its unwavering commitment to environmental stewardship, MCL has implemented a comprehensive suite of measures aimed at mitigating the adverse impacts of mining operations. These include advanced dust suppression techniques utilizing water, sprinklers, and fogging systems, as well as the adoption of cutting-edge technologies to minimize dust pollution and enhance environmental sustainability.
Furthermore, MCL has embraced its corporate social responsibility (CSR) with a deep sense of purpose and dedication, extending a helping hand to communities in need, especially during times of crisis. The company’s exemplary efforts in combating the COVID-19 pandemic stand as a testament to its unwavering commitment to the welfare of the local populace, with significant funds allocated towards the establishment of dedicated COVID hospitals and the provision of free healthcare services to affected individuals across Odisha.
In addition to its philanthropic endeavours, MCL has undertaken several landmark CSR projects aimed at fostering holistic development and social upliftment in the region. These include the construction of a state-of-the-art medical college in Talcher, Angul district, alongside the upgrading of existing healthcare facilities to serve as teaching hospitals.
MCL has undertaken specific large-scale projects under its Corporate Social Responsibility (CSR) initiatives as a testament to its commitment to uplifting the local community. One exemplary endeavor is the construction of a 100-seat medical college in Talcher, Angul district, at a cost of Rs. 493 crore. This transformative initiative not only addresses the region’s healthcare needs but also lays the foundation for nurturing medical professionals and fostering healthcare innovation. Concurrently, MCL has upgraded its hospital into a 500-bed facility, which will serve as the teaching hospital for the medical college, further enhancing the quality of healthcare delivery in the area. In addition to the capital investment, MCL has pledged to bear the operational costs of the medical college, estimated at Rs. 815 crore over five years, demonstrating its long-term commitment to healthcare excellence.
Moreover, MCL has bolstered its healthcare infrastructure by constructing a cardiac care hospital in Jharsuguda, a testament to its dedication to providing specialized medical services to the community. Furthermore, MCL has allocated CSR funds of nearly Rs. 9 crore for the improvement of healthcare institutions in Kandhamal district and Rs. 8 crore for the upgrading of medical facilities at VIMSAR, Burla, underscoring its holistic approach to healthcare development across Odisha.
Beyond these major initiatives, MCL has established various health centers, organized health camps in the periphery of its operational areas, and provided essential medical equipment to government hospitals, thereby augmenting access to quality healthcare services for underserved communities. Additionally, MCL’s commitment to emergency medical services is exemplified by its contribution of 30 ALS ambulances to the state’s health infrastructure, representing a significant investment of Rs. 17 crore.
Through these concerted efforts, MCL aims to not only address immediate healthcare needs but also contribute to the long-term health and well-being of the communities it serves, reflecting its ethos of corporate social responsibility and commitment to societal welfare.
Furthermore, MCL has made substantial investments in education, skill development, and environmental conservation, reflecting its commitment to driving positive change and sustainable development in the communities it serves.
Education is the cornerstone of societal progress, serving as the primary catalyst for development. Recognizing this fundamental truth, the Government of India has consistently prioritized the enhancement of educational standards for the nation’s youth. In line with this vision, Mahanadhi Coalfields Ltd has embarked on a transformative journey to revolutionize the education system in the state of Odisha.
MCL’s commitment to education is underscored by its substantial investment of Rs. 33 crore towards the revitalization of various high schools across the state. Furthermore, the company has spearheaded a groundbreaking initiative by installing 419 state-of-the-art smart class solutions in government schools throughout Odisha, with an investment exceeding Rs. 14 crore. These technological advancements aim to enhance learning outcomes and equip students with the skills needed to thrive in the digital age.
In addition to infrastructure development, MCL has demonstrated its unwavering support for higher education by allocating Rs. 43 crore for the construction of a 500-seater girl’s hostel at NIT Rourkela. Moreover, the company has already established a ladies’ hostel at Sambalpur University, investing more than Rs. 3 crore to provide female students with a conducive learning environment.
Furthermore, MCL has actively embraced the vision of a ‘Skilled India’ promoted by the Government of India. Through its Corporate Social Responsibility (CSR) initiative, MCL is empowering the youth in its peripheral areas by offering residential skill training programs to 3600 individuals. These skill courses, designed to meet industry demands, come with a minimum placement guarantee of 70 per cent, ensuring that participants are equipped with the skills needed for gainful employment. In pursuit of this noble endeavour, MCL is allocating nearly Rs. 42 crore under its CSR budget, reaffirming its commitment to fostering a skilled workforce and driving socio-economic growth in the region.
In essence, MCL’s multifaceted approach to education and skill development reflects its dedication to nurturing human capital and fostering inclusive growth. By investing in the intellectual and vocational empowerment of the youth, MCL is not only shaping the future of Odisha but also contributing to the nation’s journey towards prosperity and self-reliance.
In its steadfast commitment to environmental sustainability, MCL has embarked on various ambitious plantation projects across Odisha. In the year 2021-22 alone, MCL successfully completed an urban tree plantation drive, planting approximately 6 lakh trees across Angul, Jharsuguda, Sambalpur, Sundergarh, and Khurda districts, representing an investment of Rs. 22 crore. Furthermore, MCL has undertaken extensive plantation efforts in Khurda and Cuttack districts, planting over 5,23,000 trees at a cost of Rs. 26 crore, reaffirming its commitment to fostering a greener and more sustainable environment.
In alignment with the Union Government’s ‘Aspirational District development programme’, MCL has proactively engaged in various development projects aimed at uplifting the most backward districts of the country. Through its Corporate Social Responsibility (CSR) initiative, MCL has undertaken a comprehensive range of development projects in four Aspirational districts – Rayagada, Nuapda, Bolangir and Kandhamal – with a total investment of Rs. 38 crore. These initiatives encompass a diverse array of sectors, including infrastructure development, healthcare, education, and livelihood enhancement, demonstrating MCL’s holistic approach to community development and empowerment.
Moreover, MCL has recently completed the construction of stadiums in Sambalpur and Jajpur districts, representing a significant investment exceeding Rs. 35 crore. These state-of-the-art sporting facilities not only promote healthy lifestyles and recreational activities but also serve as hubs for community engagement and social cohesion.
In addition to these large-scale initiatives, MCL is actively involved in numerous small-scale projects aimed at enhancing the quality of life in rural communities. These projects include the construction of community halls in dozens of villages, provision of water supply during summer months, and implementation of measures to augment the income of local farmers. These initiatives, though small in scale, have a profound impact on the livelihoods and well-being of rural communities, fostering economic resilience and social inclusion.
Furthermore, MCL’s extensive Corporate Social Responsibility (CSR) activities have yielded a myriad of indirect benefits, including the generation of goodwill within society and the enhancement of the company’s reputation as a responsible corporate citizen. MCL’s CSR efforts span a wide spectrum of initiatives, ranging from infrastructure development in schools to the establishment of smart classrooms in over a hundred schools. As a result of its unwavering commitment to social responsibility, MCL’s expenditure under CSR has seen a notable increase, rising from nearly Rs. 160 crore to over Rs. 260 crore for the current financial year, reflecting the company’s dedication to making a positive and lasting impact on the communities it serves.
As a responsible corporate citizen, MCL has continually demonstrated its unwavering commitment to the socio-economic development of Odisha through its CSR initiatives. These efforts, underpinned by a steadfast dedication to environmental sustainability and community welfare, underscore MCL’s role as a catalyst for positive change and progress in the region.
