Prakash Industries has received Consent to Operate (CTO) from the Chhattisgarh Environment Conservation Board for expanding its Bhaskarpara Coal Mine production capacity from 1.0 MTPA to 1.2 MTPA. According to the company's announcement, the approval was granted through a Chhattisgarh Environment Conservation Board letter dated September 10, 2026. This regulatory milestone follows the Environmental Clearance granted by the Ministry of Environment, Forest and Climate Change on June 12, 2026. The expansion represents an increase of 0.2 MTPA, or 20%, over the mine's previous production capacity, marking an important regulatory step for the company in implementing the planned capacity expansion.
The expansion builds upon Prakash Industries' 30-year mining lease for the Bhaskarpara commercial coal mine in Surajpur district, Chhattisgarh, which was finalised in 2024. As reported by CNBC TV18, the mining lease was executed by the state government on November 21, 2024, and has been registered today, granting the company coal mining rights for 30 years. The Bhaskarpara project operates as a commercial mine, positioning it to generate additional revenue and enhance profitability through open-market coal sales. The higher production capacity could support the company's coal availability for its operations, though actual benefits will depend on the pace of production ramp-up and other operational considerations.
According to the company's statement, the coal supplies from this mine are expected to provide stability to the company's Integrated Steel operations as well as result in significant cost reductions. As a commercial mine, the Bhaskarpara project is designed to boost revenue and profitability through open-market coal sales, creating multiple revenue streams beyond traditional steel operations. The mine's commercial nature allows for direct market participation rather than solely supplying internal operations, with the higher capacity enabling greater market participation and operational flexibility.
Shares of Prakash Industries Ltd ended at ₹123.90, down by ₹0.100, or 0.081% on the BSE on Friday, September 11, 2026. As reported by CNBC TV18, this represents a modest decline despite the positive regulatory developments, indicating measured market response to the expansion announcement. The stock movement reflects investor reaction to the company's progress in securing necessary approvals for the coal mine expansion, with the market showing cautious optimism about the strategic benefits of the capacity increase.
