Govt allows mining in non-forest areas of forested mining blocks

Move comes after miners had demanded that they be allowed to start operations early in blocks under their possession

The Union environment ministry has allowed mining to be started in the non-forest parts of forested coal blocks.

According to a recent guideline, the forest conservation division of the ministry have allowed state governments to execute mining leases under the Mines and Minerals Act, 1957 for non-forest areas of forested coal blocks.

This will allow miners who have secured stage I approval under the Forest Conservation Act, 1980 (FCA) to start operations in non-forested areas of even partly forest mining blocks.

Existing laws governing mining in such blocks mandated miners to take all necessary permissions, including stage II approval under the FCA, from the Union government to commence operations in any part of the block.

The move comes after miners repeatedly demanded that they be allowed to start operations early in coal blocks under their possession. After complaints of slow pace of approvals, which pushed up operational costs, the government had in April issued a guideline which accorded a "general approval" to all leases that had secured forest clearance for even part of the area.

Upon payment of the net present value (NPV), a compensatory levy towards using forest land, a miner could claim general approval. However, it led to controversy since such approval did not confer the right to mine the land, reserving it for until after stage II permission was granted.

On the other hand, the government pushed itself into a corner after taking money for lands that it did not promise the right to.

A separate guideline issued recently upheld these earlier directions, ordering all mining entities to pay NPV until April 1, 2016.