India-based conglomerate Adani Group has commenced the coal mine developer-cum-operator (MDO) operations at the Parsa East-Kente Basin coal mine in Chhattisgarh.

The company stated that the move has marked its foray into resources industry after it bagged MDO contract from the mine owner – Rajasthan state-run power company Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL).

Commenting on the developments, Adani Group chairman Gautam Adani noted that the commencement of coal mining at Parsa Kente marks a significant milestone for its coal sector.

The company that operates the mine through its subsidiary Adani Mining has outlined phase capital investment of INR30bn ($548.2m) for the project. It claims to have an access to produce nearly 90 million tons with reserves of over 3 billion tons over next 30 years.

As per the contract, the company is liable to set up a coal washery, a coal handling plan and railway siding infrastructure to transport the coal to RRVUNL’s fuel-starved power plants in Rajasthan.

Adani Mining, meanwhile, said that the coal block holds reserves of 450 million tons of coal and it plans to produce 2 million tonnes a year initially. In addition, it is seeking to raise the production capacity to 15 million tons a year beginning 2017.