ndicating an end to the year-long tussle over the controversial no-go mining issue, Coal Minister Sriprakash Jaiswal has said the problem had been resolved.
The announcement, which came a week before the scheduled meeting of the Group of Ministers (GoM) specifically set-up to suggest a way out of the deadlock, confirms speculations of a softening stance by Environment and Forests Minister Jairam Ramesh on the issue.
“There is nothing like go and no-go now. The environment minister has adopted a generous attitude which has made production of more coal possible,” the coal minister said after an hour-long meeting with Ramesh.
This was the second meeting between them in recent times.
During the meeting, coal ministry officials presented to Jairam a list of around 100 top-priority mining projects where the ministry is pushing for quicker approval for environment clearance. “After today’s meeting, it will be possible to expedite clearance for blocks with reserves of around 25 million tonnes,” said an official who attended the meeting.
The two ministers did not share any details. Jaiswal, though added that the two ministers were able to reach a consensus on the future course of policy direction in clearing coal blocks.
“Seventy-five per cent of Coal India’s problem has been solved. We have made a consensus to ensure coal production is not impacted. In future, we will decide where mining is to be done on a qualitative and case-to-case basis,”
he said.
Asked whether he implied that 75 per cent of Coal India’s blocks held up in no-go areas would be freed, Jaiswal said: “We expect 75 per cent of Coal India’s problem has been solved. Both of us realise that power requirement is increasing in line with the country’s coal requirement.”
Jaiswal also said the environment ministry had agreed to review its decision in coal mining projects which had a low Comprehensive Environment Pollution Index (CEPI). The environment ministry had last year imposed a temporary moratorium on development projects in 43 clusters labelled “critically polluted,” as they had a CEPI score of more than 70. Seven coalfields — Chandrapur, Korba, Dhanbad, Talcher, Singrauli, Asansol and IB Valley — are falling under the CEPI moratorium.
The environment ministry had last year barred coal blocks falling in heavily forested regions called No-Go areas from mining. Investments worth Rs. 40,000 crore are currently stuck in no-go areas.
20 new washeries
In another development, Coal Minister said that Coal India will set up 20 new washeries with a combined capacity of 111 million tonnes to help realise a better price for its produce.
“... 20 new washeries with an annual capacity of 111 million tonnes per annum are being taken up by Coal India (CIL) during the XI and XII Five-Year Plans,” he said.
At present, CIL operates 17 coal washeries, out of which 11 are coking coal and the remaining are non-coking coal washeries, with a total capacity of 39.40 million tonnes per annum.
The ministry had earlier estimated that establishment of the new washeries would require an investment of Rs. 2,500 crore, with a view to reduce the ash content in coal produced by CIL and improve its calorific value, among other things.
Indian coal has high ash content. The average ash content in Indian coal is 35-38 per cent. In this regard, washing will help reduce the ash content by 7-8 per cent.
The coal washeries will help Coal India, the world's largest producer of the dry fuel, garner a better price for its output.
The minister had earlier said that all of CIL’s new mining projects with a capacity of two million tonnes per annum or more would have in-built washeries to enhance the quality of coal, as a matter of policy.
“A number of private operators are already into coal washing in the country and the power sector has started using washed coal for power generation, considering its economic and environmental benefits,” Jaiswal said.
Coal washing is being promoted in the country as a number of studies have shown that washed coal has higher calorific value than unwashed coal, translating into better power generation efficiency. The lower ash content of washed coal results in lower emissions as well.
‘Coal imports to jump 70% next fiscal’
India’s coal imports are likely to jump 70% in the next fiscal, higher than the previous estimate of a 25% rise, as delays in environmental clearances has hit mining projects, coal minister said.
The country is likely to import 142 million tonnes in 2011-12, much larger than the 104 million tonnes shortfall indicated by the minister just two months back.
Imports for the current fiscal are expected to be nearly 84 million tonnes.
The country’s domestic production continues to fall short of the target due to hurdles such as environmental clearances, land acquisition problems and low investments.
In recent times, coal producers have been looking for acquiring assets abroad to help meet the shortfall. “The import dependence is increasing rapidly. Speeding up environmental and forestry clearances for coal projects would help in curtailing imports,” Jaiswal said.
Other issues which need to be addressed include strengthening coal evacuation facilities and port infrastructure facilities. This may impact power generation projects and earnings of steel, power and cement firms.
India’s coal production is projected at 630 million tonnes in 2011-12 against a demand of 713 million tonnes. Jaiswal further said there is a need to allow permission to mine in these areas for meeting country's coal requirement.
The announcement, which came a week before the scheduled meeting of the Group of Ministers (GoM) specifically set-up to suggest a way out of the deadlock, confirms speculations of a softening stance by Environment and Forests Minister Jairam Ramesh on the issue.
“There is nothing like go and no-go now. The environment minister has adopted a generous attitude which has made production of more coal possible,” the coal minister said after an hour-long meeting with Ramesh.
This was the second meeting between them in recent times.
During the meeting, coal ministry officials presented to Jairam a list of around 100 top-priority mining projects where the ministry is pushing for quicker approval for environment clearance. “After today’s meeting, it will be possible to expedite clearance for blocks with reserves of around 25 million tonnes,” said an official who attended the meeting.
The two ministers did not share any details. Jaiswal, though added that the two ministers were able to reach a consensus on the future course of policy direction in clearing coal blocks.
“Seventy-five per cent of Coal India’s problem has been solved. We have made a consensus to ensure coal production is not impacted. In future, we will decide where mining is to be done on a qualitative and case-to-case basis,”
he said.
Asked whether he implied that 75 per cent of Coal India’s blocks held up in no-go areas would be freed, Jaiswal said: “We expect 75 per cent of Coal India’s problem has been solved. Both of us realise that power requirement is increasing in line with the country’s coal requirement.”
Jaiswal also said the environment ministry had agreed to review its decision in coal mining projects which had a low Comprehensive Environment Pollution Index (CEPI). The environment ministry had last year imposed a temporary moratorium on development projects in 43 clusters labelled “critically polluted,” as they had a CEPI score of more than 70. Seven coalfields — Chandrapur, Korba, Dhanbad, Talcher, Singrauli, Asansol and IB Valley — are falling under the CEPI moratorium.
The environment ministry had last year barred coal blocks falling in heavily forested regions called No-Go areas from mining. Investments worth Rs. 40,000 crore are currently stuck in no-go areas.
20 new washeries
In another development, Coal Minister said that Coal India will set up 20 new washeries with a combined capacity of 111 million tonnes to help realise a better price for its produce.
“... 20 new washeries with an annual capacity of 111 million tonnes per annum are being taken up by Coal India (CIL) during the XI and XII Five-Year Plans,” he said.
At present, CIL operates 17 coal washeries, out of which 11 are coking coal and the remaining are non-coking coal washeries, with a total capacity of 39.40 million tonnes per annum.
The ministry had earlier estimated that establishment of the new washeries would require an investment of Rs. 2,500 crore, with a view to reduce the ash content in coal produced by CIL and improve its calorific value, among other things.
Indian coal has high ash content. The average ash content in Indian coal is 35-38 per cent. In this regard, washing will help reduce the ash content by 7-8 per cent.
The coal washeries will help Coal India, the world's largest producer of the dry fuel, garner a better price for its output.
The minister had earlier said that all of CIL’s new mining projects with a capacity of two million tonnes per annum or more would have in-built washeries to enhance the quality of coal, as a matter of policy.
“A number of private operators are already into coal washing in the country and the power sector has started using washed coal for power generation, considering its economic and environmental benefits,” Jaiswal said.
Coal washing is being promoted in the country as a number of studies have shown that washed coal has higher calorific value than unwashed coal, translating into better power generation efficiency. The lower ash content of washed coal results in lower emissions as well.
‘Coal imports to jump 70% next fiscal’
India’s coal imports are likely to jump 70% in the next fiscal, higher than the previous estimate of a 25% rise, as delays in environmental clearances has hit mining projects, coal minister said.
The country is likely to import 142 million tonnes in 2011-12, much larger than the 104 million tonnes shortfall indicated by the minister just two months back.
Imports for the current fiscal are expected to be nearly 84 million tonnes.
The country’s domestic production continues to fall short of the target due to hurdles such as environmental clearances, land acquisition problems and low investments.
In recent times, coal producers have been looking for acquiring assets abroad to help meet the shortfall. “The import dependence is increasing rapidly. Speeding up environmental and forestry clearances for coal projects would help in curtailing imports,” Jaiswal said.
Other issues which need to be addressed include strengthening coal evacuation facilities and port infrastructure facilities. This may impact power generation projects and earnings of steel, power and cement firms.
India’s coal production is projected at 630 million tonnes in 2011-12 against a demand of 713 million tonnes. Jaiswal further said there is a need to allow permission to mine in these areas for meeting country's coal requirement.
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