The main objective of the study is to assess the environmental impacts due to the proposed Kelo project on land, water, Flora & Fauna, public Health; Climate and socio-economic conditions. Also, the study evolves a suitable environment management plan for minimizing/ eliminating the negative impacts likely to occur due to the construction of the project in the area.

Chhattisgarh is a rich State in terms of mineral wealth, with so far known 28 varieties of minerals, including diamonds. Chhattisgarh, has substantial coal deposits, which led to its 'power hub' strategy. The tin ore which is a rare metal in India is found in Chhattisgarh. The best quality iron ore deposits in the world are found in the Bailadila mines of Dantewara district in Chhattisgarh. Rich deposits of Bauxite, Limestone, Dolomite and Corundum are also found in the State.

The Biomass base power plant of RREL is located near village Darramuda and Garh umaria , at Raigarh district in the Chhattisgarh state. The 14 MW Biomass based captive power plant is operational since Feb 2007 and 1 lakh tonnes capacity steel plant base on induction furnace is under implementation, for which the consent to establish has already been obtained.