Chief Minister Devendra Fadnavis on Thursday, 18 June formally urged the Union Ministry of Coal and Mines to allocate six iron ore mining blocks in Gadchiroli district to the Maharashtra State Mining Corporation (MSMC), pitching the move as the centrepiece of his government's ambition to make Maharashtra a 'Green Steel Hub'. The request was made at a high-level meeting with Union Minister for Coal and Mines G Kishan Reddy in New Delhi.

What Fadnavis Is Asking For

Fadnavis sought clearance of approximately 1,300 hectares of mining area in Gadchiroli, drawing a direct parallel to the model adopted by the Odisha State Mining Corporation for its bauxite operations. He argued that routing the blocks through the state-run MSMC — rather than open auction — would ensure transparent, efficient mineral distribution directly to steel manufacturers, bypassing the steep auction premiums that, according to the Chief Minister, have left roughly 450 of the nearly 500 mines auctioned across India non-operational.

Fadnavis expressed confidence that the mines can be made operational within two years, with full-scale production targeting 50 million tonnes of iron ore annually by 2030.

Why Gadchiroli

Gadchiroli holds some of the highest-grade iron ore deposits in the country, alongside rich limestone reserves and other minerals critical to steelmaking, according to the state government. The region also benefits from proximity to coal mines and abundant water resources. Notably, the sustained decline of Naxalism in the district has created what officials describe as a stable, secure environment conducive to large-scale industrial investment — a condition that was absent for decades.

Major industrial groups, including Tata and JSW Group, have already signed Memorandums of Understanding (MoUs) with the Maharashtra government, and land acquisition for their facilities is reportedly underway.

The Investment and Jobs Case

The Chief Minister projected that the integrated steel ecosystem, if realised, would attract investments worth ₹3 lakh crore and generate millions of jobs in the region. He further claimed that the planned production framework would enable Maharashtra to manufacture steel at a cost lower than that of China — a claim that, if verified, would represent a significant competitive advantage for Indian exporters.

The state has also mapped out a dedicated logistics corridor to connect Gadchiroli to major maritime export points, including Jawaharlal Nehru Port Authority (JNPA) and the upcoming Vadhavan Port, via a dedicated rail and freight network. Land has been reserved for rail infrastructure alongside the Hindu Hrudaysamrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg.

Centre's Response and Next Steps

Union Minister G Kishan Reddy responded positively to Maharashtra's proposals. To address long-standing quality disputes faced by state power generation companies over coal supply, Reddy issued immediate directives to implement an automated sample testing system for coal quality verification, according to the government release.

The meeting concluded with a broader discussion on resolving technical and operational bottlenecks in the state's mining, coal, and energy sectors. Fadnavis assured that Maharashtra will move quickly on requirements raised by the Union Ministry of Coal, Western Coalfields, and Coal India. Maharashtra currently has more than 40 mineral blocks ready for auction, with processing initiated for 14 of 34 major blocks — signalling a wider push to accelerate the state's mining sector well beyond Gadchiroli.