City-based Rashmi group on Wednesday said it will mine coal from three blocks in Bengal — Kagra Joydev and Kasta East in Birbhum and Jagannathpur B in west Burdwan.

The group has received cabinet approval through a “Long Term Settlement” scheme whereby the state has transferred 715.58 acres of land at Kagra Joydev coal block, which was formerly allotted to Damodar Valley Corporation.

Land acquisition had been a major hurdle for mining coal from the block in the past leading to the central power utility eventually surrendering the coal block. The block, which has a peak rated capacity of 3 million tonnes per annum, was auctioned and Orissa Metallurgical Industry Private Limited (a group company) was the successful bidder earlier this year.

“In order to start our mining operations in Kagra Joydev, we are confident of the continued support from local district administration in acquiring land required for mining alongside possession of land acquired through LTS in order to proceed with our plans as per schedule,” the group said in a statement.

For the other two coal blocks — Jagannathpur B and Kasta East — the peak rated capacity are 0.8mt and 1.89mt and the successful bidders were Powerplus Traders and Jitusol Developers, both joint venture companies of the group.

The group said it has so far invested Rs 15,000 crore in an integrated steel plant and Rs 450 crore in mining activities.

The company has proposed investments of Rs 20,000 crore in expanding the integrated steel plant and an additional Rs 2,000 crore in mining activities between 2023 and 2030.

The plan includes the augmentation of the integrated steel plant in Kharagpur and Jhargram and establishing new steel plants at Jamuria and Purulia.

The Rashmi group, founded in 1991, is engaged in the manufacturing of integrated iron and steel products, cement, power and mining.

“We are committed to creating sustainable employment opportunities and contributing to the prosperity of the region,” said Sanjiv Patwari, promoter, Rashmi group.