In a move that would give a fillip to domestic coal production, the government is likely to lift the moratorium on mining activity, in areas which score poorly on a pollution index. The ministry of coal, which is battling the environment ministry?s alleged intransigence on keeping certain coal-bearing areas as ?no-go? zones, is set to move the Cabinet to remove this restriction, an official source told FE.
Incidentally, what could stand in the coal ministry?s way is again a rule implemented by the Union environment ministry headed by Jairam Ramesh ? a moratorium on industrial activities in areas having a poor score on its comprehensive environment pollution index (CEPI). The coal ministry?s Cabinet note says this has started impacting coal production at a time when demand for the solid fuel is surging, thanks to aggressive capacity build-up in the power sector. The ministry also said coal-bearing areas falling under CEPI are relatively less polluting than other areas under the index.
?In our supplementary note to the Cabinet Committee on Infrastructure (CCI) on freeing coal-bearing areas from go, no-go catergorisation, we have also proposed that the moratorium of coal mining be lifted in all industrial clusters,? said a top official in the coal ministry, asking not to be named.
? The restriction is coming in the way of developing several new coal fields, that could impact annual coal production to the tune of 40 million tonne per annum ? enough to support 8,000 mw of power projects,? the official said.
CEPI is an index developed to measure environment pollution in industrial clusters emanating from pollutants with systemic toxicity. The environment ministry through Central Pollution Control Board (CBCB) and IIT, New Delhi through a study of 88 industrial clusters last year concluded that clusters having CEPI scores of 70 and above should be considered critically polluted. Consequently, the ministry put a moratorium on development activities in 43 clusters, which also have several coal mining projects in them.
Out of these 43 areas, seven cover the country’s major coal fields, namely Chandrapur, Korba, Talcher, Singrauli, Dhanbad, Ib Valley and Asansol. The moratorium has held up environment clearances, leading to an estimated loss of production of 16 million tonne in 2010-11, which would approach 40 million tonne in 2011-12 from 14 mines of Coal India.
In the Cabinet note, the coal ministry has sought approval for granting environment clearance to coal mining projects in areas with higher CEPI of 70 without waiting for the condition contained in the notification that state pollution control boards submit action plans for these areas. It has, however, proposed, that government could put a moratorium on supply of coal to polluting industries in clusters having CEPI score of 70 and above.
The latest confrontation between the coal ministry with the environment ministry comes after the former rejected the environment ministry?s ?go?, ?no-go? catergorisation of coal bearing areas in the country. This put a question mark on the development of 203 coal blocks with annual production potential of 660 million tonne, with power generation potential of 1, 30,000 mw. The Cabinet note, which seeks removal of this categorisation, asks the Cabinet to continue with the existing system of granting environment clearances for coal mining projects.
The coal ministry is concerned that restrictions on coal mining could severely impact several development projects from user industries in power, cement and steel sectors, in addition to expanding the present gap of around 60 million tonne in demand and supply of domestic coal. This gap is expected to increase to over 120 million tonne per annum in the next few years according to an assessment by the Planning Commission.
