NLC India Limited (NLCIL) has commenced coal production at the Pachwara South Open Cast Mine in Dumka district, Jharkhand, to supply fuel for the Ghatampur Thermal Power Plant. The mine will feed Neyveli Uttar Pradesh Power Limited, a joint venture of NLCIL and UP Rajya Vidyut Utpadan Nigam Limited, which is developing a three-unit 660 megawatt (MW) plant at Ghatampur in Uttar Pradesh. The allocation of the Pachwara South Coal Block to the joint venture in 2024 was intended to secure fuel for the project and support its commissioning.

The mine has a normative capacity of nine million (mn) tonnes (t) per annum of G10 grade coal and draws from a fully explored extractable reserve of 264.84 million (mn) tonnes. Preliminary mining operations, including removal of overburden, began on December 19, 2025, and the project moved into active coal production within approximately three months. The early start of production was presented as a key step towards meeting domestic fuel needs for the associated power project.

NLCIL reported that the rapid operationalisation reflects concentrated preparatory work and coordinated deployment of equipment and personnel. The chairman and managing director of NLCIL indicated that the milestone will ensure a steady supply of coal for the Ghatampur facility and support India's growing energy demand. The secured domestic fuel source is expected to reduce dependence on external supplies and lower logistical risks for the joint venture.

By operationalising the mine ahead of schedule, NLCIL said it aims to strengthen energy security and improve the long term viability of the upcoming power generation facility in Uttar Pradesh. Sustained production from Pachwara South will provide a predictable fuel stream for project planning and may assist in stabilising fuel logistics for the region. The move forms part of NLCIL's broader strategy to augment internal fuel resources for its power portfolio.