Company Name : Generic Source : Business Standard

 

Government-owned Coal India would like an end to the policy of ‘no-go’ areas for mining, saying it was jeopardising its output targets.

With 14 projects of CIL coming under the no-go classification and some mining areas being designated as critically polluted industrial clusters, its annual production is expected to take a hit of more than 70 million tonnes.

Coal production of other companies would be similarly hit. As against a target of 81 mt by 2012, captive producers are likely to produce 43 mt.

CIL had initially set a 520 mt production target by 2012, but the new Comprehensive Environmental Pollution Index and the no-go issue have forced downward revision to 447 mt, said a senior CIL official.

“Both these issues will lead to a loss of over 70 mts from the 2012 target. The problem is that even our existing operational mines are being impacted by the two new guidelines of the environment ministry. Although we keep on acquiring new land for mining, our growth plan will be jeopardised if environmental clearances are not obtained,” he said.

CIL meets 80 per cent of the domestic coal demand, of over 500 mt annually. The Union environment ministry (MoEF) had classified the country’s forests as go and no-go areas earlier this year, specifying regions where mining can be permitted only after stringent forest clearances are obtained.

“CIL will not have adequate coal blocks to continue its level of production beyond the 12th Plan period (2012-17) if these issues are not addressed on a priority basis,” a Planning Commission note states, referring to delays in getting environmental clearances for CIL’s projects due to no-go and land acquisition problems.

The union cabinet is to discuss the note soon, on the coal shortage.

“The delay in getting environment and forest clearances has affected the production plans of CIL in 14 projects of the 11th Plan (ending 2012), leading to loss of production of 45.64 mt,” it adds. While the no-go classification is indicative, several existing and upcoming mines considered critical for infrastructure growth now fall in areas barred for mining.

“One of the main reasons for the slow increase in production could be sudden change in policy for clearance of coal blocks and adoption of the go and no-go method of clearance,” the note says.

The no-go classification includes areas in Singrauli, north Karanpura, Ib Valley, Mand-Raigarh, Talcher, Sohagpur, Wardha Valley, Hasdeo-Arand and West Bokaro. While Hasdeo-Arand in Chattisgarh is totally under the no-go tag, it is 60 per cent in Mand-Raigarh, 44 per cent in Singrauli and 35 per cent in Ib Valley. Overall, 203 coal blocks with reserves of 600 mt and linked power projects of 50,000 Mw capacity have been stuck due to the no-go criterion.

Confirming the threat to CIL’s production plan due to no-go, a senior official from the Planning Commission said, “CIL is not coming up with the production level it was expected to. The main reason is the issue of go and no-go area. From where would new blocks come, if you keep on holding blocks on environment clearances? Fourteen of CIL’s projects are falling in no-go and have not been cleared by the MoEF.”

The no-go criterion is not the only issue holding up projects on environmental grounds. MoEF had imposed a temporary moratorium on development projects in 43 clusters labelled “critically polluted”. Seven coalfields – Chandrapur, Korba, Dhanbad, Talcher, Singrauli, Asansol and Ib Valley – fall foul of standards under the CEP Index.