TALCHER: Stalemate between villagers of Bhalugadia and Mahanadi Coalfields Limited (MCL) over resettlement issues has hit production at Hingula coal mine.
On agitation, the villagers have stalled blasting at the mine which has affected production of coal. An official said, production has come down to to 1,500 tonne per day from 4,000 tonne. Bhalugadia village was acquired by MCL for Hingula mine.
As per sources, while the villagers have been demanding resettlement amount of `19 lakh per family before their houses are razed, MCL says they need to vacate the area before any compensation is offered to them.
The villagers have reportedly availed benefits offered by MCL but not vacated their houses.
Due to the stalemate, the villagers resorted to ceasework at the mines a few days back. Talks at regular intervals have not been successful in persuading the agitating villagers to call off their stir, a police official stated adding if they refuse to budge, action would be initiated against them.