Coal news and updates

Coal blocks nod to hinge on forest law

The de-allocated coal blocks that were auctioned recently will get environment clearance only if they are not in violation of the forest laws.

Answering a question on whether his ministry would give automatic clearances to the 34 coal blocks that are in densely forested areas, Union minister of state for environment and forests and climate change Prakash Javadekar said “the coal blocks that were in violation of the Forest Act would get environmental hurdles.”

There is a lot riding on the production from these blocks boosting the supply of coal to coal-starved power plants and help cut down imports. The production target for captive coal mines in 2014 was 38.88 million tonnes (MT) against a target of 50 MT. The present shortfall between demand and supply is around 210 MT.

While captive mines could boost supply, India will have to depend on imports that could come to around 150 MT, according to Macquarie Research which says “India is currently the most positive story globally for thermal coal imports estimated at 220 MT or 23 per cent of the global share in the next four years.

Linus Lobo who represents the US-based Xcoal Energy and Resources says the transport of imported coal is cheaper and quicker from say the US to Punjab than from Assam or Nagaland to the Punjab.

source: http://www.asianage.com