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This is an archive article published on July 12, 2010

CoalMin,MoEF identify ‘Go’ area blocks

Finally,there is some good news for the coal mining industry. After intense bitterness between them,the coal ministry and the Ministry of Environment and Forests...

Finally,there is some good news for the coal mining industry. After intense bitterness between them,the coal ministry and the Ministry of Environment and Forests (MoEF) in a preliminary exercise have jointly completed the identification of the coal blocks falling in the “Go” area category by incorporating the cluster and sub-cluster concept. It has now emerged that 80 blocks fall in the said category,of which 24 are existing mines.

In a letter to Prime Minister Manmohan Singh’s Office on June 28,a senior coal ministry official said following a meeting chaired by Singh’s principal secretary T K A Nair on June 16,both the ministries had jointly carried out an exercise to identify the coal blocks falling in Category A and B areas. “It has been seen that now an additional 53 blocks,out of which 24 are existing mines,have come into the B category. A further 27 blocks have been identified having an area of 82,539 hectares,which after suitable boundary modifications will also come into the B (Go) category. The estimated area of these blocks will be around 62,000 hectares,” the official wrote in his letter to the PMO.

But the modification of boundaries of these blocks needed to be done on larger scale maps as compared to the maps on which the study on forestry cover has been completed. “The exercise on boundary modifications will thus take some more time,” he said. In a recent meeting chaired by finance minister Pranab Mukherjee,coal minister Sriprakash Jaiswal complained that without taking his ministry into confidence the MoEF had unilaterally fixed the criteria for the Weighted Forest Cover and Gross Forest Cover. He said that had led to to large coal bearing forest area being classified as “No Go” areas,which would adversely impact coal production.

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“Decisions with such far-reaching implications are usually taken by setting up Inter-Ministerial Committees (IMCs) where views of all stakeholders are properly obtained and deliberated on,and thereafter recommendations are put up for the approval of the Group of Ministers (GoM) or the union cabinet,” Jaiswal told Mukherjee. He even argued that following the government’s decision to offload 10 per cent stake in CIL ,the company’s Book Lead Running Managers and potential investors had expressed the apprehension that the company’s valuation could be seriously affected.

Even the PMO,in a meeting with the top brass of the coal ministry and the MoEF,expressed unhappiness that the categorisation of A and B areas would result in 619 million tonnes of coal per annum remaining out of bounds for Coal India Limited. Pointing out that the “No Go” approach could lead to an increase in Naxalism,the PMO suggested that the threshold of Weighted Forest Cover could be greater than 30 per cent and Gross Forest Cover could be greater than 50 per cent to treat the area as “No Go” instead of 10 and 25 per cent as suggested at present.

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