PMO may lift coal mining ban if plants 50% ready

Companies that were given linkage from the Hasdeo-Arand coalfields may get some respite on the environment front provided they have constructed more than half the plant.

The Prime Minister’s Office (PMO) is considering giving a go-ahead to projects where companies have completed 50% of the construction after getting coal linkage, it is learnt.

“The issue is grave as a lot of companies have invested in the projects in anticipation of coal linkage. Such plants could be given a go-ahead, after an inter-ministerial group takes the final call on the issue,” said a source close to the development.

The environment ministry has declared the Hasdeo-Arand coalfield in Chattisgarh as a no-go area, where no mining activity could be undertaken. However, industries as well as the ministries of coal, power and steel have been lobbying hard to get clearance for some of the important projects in the area.

At a May 21 meeting, presided over by T K A Nair, principal secretary to the Prime Minister, officials of the environment and forests ministry were told that, due to the ministry’s no-go classification, 619 million tonnes per annum of coal production capacity (about 412 mtpa from Coal India’s areas and 207 mtpa from captive blocks) was getting affected, which was not acceptable to the PMO.

A major part of the no-go area falls in the Hasdeo Arnad Coal field.
In nine coalfields, where superimposition of coal-bearing areas and forest areas had been done, 48% of the area fell in “no go” category “which is not
agreeable”.

The Hasdeo-Arand Coal Field has 20 coal mines with estimated proven reserves of 1360 million tonnes. Prakash Industries, Hindustan Zinc, Ultratech and Chhattisgarh Captive Coal Mining have been given mining licences on the basis of their projects in this coal field.