Mumbai, Aug 14: The World Bank has cancelled its $530 million loan for India's coal sector rehabilitation project. The cancellation follows widespread protest about the impact of the bank-funded coal mining expansion on the vital tiger and elephant corridor in central and eastern India.The North Karanpura valley in Bihar's Hazirabagh district in particular forms a vital tiger and elephant corridor and is threatened by number of coal mines, according to environmentalists.A 250 km railway line which was proposed to transport coal from the Ashoka and piperwar mines will make the place off limits to wildlife, environmental groups said.
Coal India had embarked on an extensive expansion programme which involved over 400 mines in huge areas in Central and Eastern India, which the environmentalists say are home to one quarter of the world's tiger population.
The World Bank was funding 24 open cast mines as part of the overall expansion. The bank's withdrawal is reportedly due to "a variety of reasons." Meanwhile the union government and the government of Karnataka have decided to renew the mining lease of Kudremukh Iron Ore company(KIOCL). This is despite widespread opposition from the environmental groups.The original 30-year mining lease expired in July 1999 and the ministry of environment had now granted KIOCL a one year temporary extension. This in turn expired in July 2000.
Environmentalists allege that KIOCL's track record is extremely poor. The most recent incident that they pointed out was the breaking of a pipe carrying iron ore slurry in Noorulbettu village of Karkala Taluka, Dakshina Kannada District, in the Kudremukh National Park on July 17. This is reportedly the fifth such leakage in the last one year.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.