Essar Power said its Mahan coal block in Madhya Pradesh has received stage 1 clearance from the Environment Ministry. Stage I clearance is for pre-mining activities. Essar Power is a subsidiary of the LSE-listed Essar Energy.

Clearance of the Mahan coal block will help expedite supply of fuel to Essar Energy’s 1,200 MW Mahan phase-I power project due to be commissioned shortly. The block was allocated in 2006 to Mahan Coal, a joint venture between Essar Energy and Hindalco, the company said.

Naresh Nayyar, Chief Executive Officer, Essar Energy, said, “This is a major step forward in our strategy of providing full fuel security for all our power generation assets, thereby, eliminating price and delivery risks. We also intend to set the best standards we can in protecting the rights and livelihoods of nearby villagers, restoring forest cover following mining work and conserving wildlife.”

shanker.s@thehindu.co.in