Coal news and updates

Coal projects: Environment ministry eases clearance rule

Agrees to coal ministry idea of doing away with individual mine examination and to, instead, consider clusters in the case of Coal India

The Union environment ministry has decided to consider group clearances for adjacent mines of Coal India Limited (CIL), the near-monopolist in the sector, rather than considering individual project proposals. There would be only one public hearing, a prime necessity for environment clearance, for the identified cluster, instead of examining one mine at a time.

The request to do it this way had come from the coal ministry, which was keen to raise production and sidestep environmental objections.

“It will be prudent to adopt a cluster approach for mines situated close by, so that the cumulative impact of mining on the environment could be documented and that only one public hearing for this cluster is held,” the ministry said after holding discussions in its Expert Appraisal Committee meeting on the proposal. It has said the cluster classification should be based on multiple factors.

CIL mines which already have clearance, the coal ministry had also said, could be re-arranged into clusters for future clearances and earlier okays could be “treated as group environment clearance”. The ministry has identified 94 such clusters in various CIL units.

The coal ministry was clear that the aim was to boost production. It said while granting clearance to cluster mines, the pollution parameters in the area could be laid down by the environment ministry, instead of “restricting the production limit of the cluster mines...it would facilitate enhancement of production of the cluster/mines by taking additional pollution mitigating measures to offset the impact of additional production on the environment.”

Also, a clamp on production in one unit could be allowed to be compensated by enhancing production from the other mines, keeping the overall production limit of the cluster within the limit set while giving a green nod.

The coal ministry has often blamed delay in environment clearances as the reason for shortfall in coal production across the country.

The production target for CIL has been fixed at 507 million tonnes (mt) for 2014-15. It had produced 462 mt in 2013-14, about 20 mt below the target.

Pressure for this also comes from the power ministry. In June, the country’s power shortage was estimated at an average of 5,295 Mw. To ensure adequate availability of coal for the power sector, the coal ministry has asked CIL to step up output.

Source: Business Standard