CCI could approve automatic extension of green clearances in first meet Thursday

Move will free upto over 85 mn tn additional coal annually

With coal projects bearing the brunt of delays pulling down performance of key infrastructure industries, the newly-formed Cabinet Committee on Investment (CCI) is likely to approve automatic extension of environment clearances and doing away with serial processing of environment and forest clearances hurting projects. The move will free up over 65 million tonne (MT) additional coal annually.

Historically, environment clearances (ECs) and forest clearances (FCs) used to be processed simultaneously. However, the environment ministry had last year made it mandatory for companies setting up projects to obtain FC before applying for EC, where diversion of forest land is required. The guideline was later modified allowing parallel processing.

This modification will not be of help if the restriction of one year validity of EC continues as grant of FC takes 3-5 years, according to the coal ministry. “Necessary changes in the procedure for allowing automatic extension of validity of EC need to be incorporated,” the ministry has told the cabinet secretariat. The secretariat had had the ministry to furnish details of issues impacting coal projects in a meeting on 24 December.

The ministry has provided the secretariat a list of 19 projects where EC and FC are held up even after recommendations by the Environment Appraisal Committee (EAC) and the Forest Advisory Committee (FAC). The proposal will come up for CCI’s approval, taking up projects of over Rs 1,000 crore, in its Thursday meeting.

The coal ministry has also sought immediate resolution of issues hurting the progress on three mega rail links, proposed to be constructed connecting major coalfields in three states, critical for evacuation of additional 300 MT coal annually. If the tracks are not put in place within three years, it would not be possible for Coal India to achieve either the targeted 615 MT production by 2017 or any incremental coal production in 12th Plan, the ministry has said.

This includes the 92 kilometer Tori-Shivpur-Kathotia rail link connecting North Karanpura in Jharkhand. The environment ministry had earlier denied forest land diversion for a part of the Rs 2,345 crore project forcing change in alignment. The second link, the Rs 469 crore Jharsuguda-Barpali rail line connecting IB Valley in Odisha, has been delayed as Indian railways failed to acquire land. Also, the CCI will discuss measures to fastrack the Rs 5,500 crore Bhupdeopur-Korba rail link connecting Mand-Raigarh coalfield in Chhattisgarh.

The coal ministry is also likely to seek CCI’s approval for drilling with enhanced borehole density of 20 per square Km for future exploration projects, as against 2 sq Km allowed currently, without the need for seeking prior forestry approval. The ministry has said that unless the MoEF guidelines regarding borehole density  are revised, the 12th Plan’s exploration program will be severely affected. This includes the exploration of 42 blocks to be allocated through auctioning.