GREENPEACE India warned on Monday that villagers in Madhya Pradesh province are being intimidated before a vote on a $3.2 billion (£2bn) coal project.

Mahan Coal (MCL) — jointly owned by Essar Energy and Hindalco Industries, two of the country’s largest mining firms — wants to mine part of the 385 square-mile Mahan forest for coal.

But villagers in Singrauli district oppose the project, saying it will destroy the centuries-old Sal forest on which their livelihoods depend.

And as the village of Amelia, with a population of 3,500, prepares to have its say in a vote on the project, Greenpeace says there has been a crackdown on those opposing it.

Greenpeace claims villagers opposing the project are being threatened with violence by people working for MCL, hate-speeches against the environmental group are being made by local politicians and bribes of alcohol and money are being offered.

Police have also seized Greenpeace’s communication equipment, arrested two of its activists and failed to record villagers’ complaints of intimidation.

MCL denied the “misguided and misleading” Greenpeace allegations.

“We strongly condemn continuous misrepresentation of facts by some persons and institutions having vested interests,” said MCL boss Ramakant Tiwari.

“Such actions not only delay the project but also prevent the villagers from getting legitimate benefits and compensation.

“Further, it also stalls the economic development of the country.”

But Greenpeace insisted that the mining project was not in the interests of either the country or the local populace.

“The Mahan mine is not only placing the climate at risk but will also destroy the livelihoods of thousands who depend on the forest for survival,” said Greenpeace India spokesperson Priya Pillai.

The coming vote will be the second after Greenpeace and villagers exposed the forgery of consenting signatures in the last vote in March 2013.

Greenpeace says the project will fell hundreds of thousands of trees and affect the livelihoods of 14,000 people.

But MCL claims only about 4,500 people will be affected and they will be compensated for as long as they live for lost income.