Two ministries fight over mining area classification

The disagreement between the coal ministry and the ministry of environment and forests (MoEF) over the classification of ‘go’ and ‘no-go’ areas for the country’s largest coal miner, Coal India (CIL), could be resolved by the next month. 

The two ministries had initiated a joint exercise to identify certain areas for which the MoEF would consider the diversion of forest land for coal mining purposes. An initial assessment of nine major coal fields had been made, of which upwards of 40 per cent area were designated as ‘no-go’, leading to consternation within CIL.

Incidentally, CIL’s initial public offering is slated to hit the markets later this year, and demarcation of large tracts as ‘no-go’ areas could affect the company’s valuation.

However, the CIL brass now feels that matter can be settled soon. “You can expect a positive statement in a month or two. The issue is (over) building consensus,” CIL chairman Partha S Bhattacharyya said here at a CII event.

Sources confirmed that some headway had been made with the intervention of the finance minister and the Prime Minister’s office. A meeting between the two ministries is due during the second half of August, which could see a comprehensive solution emerging. The coal ministry, sources added, is pushing for a new classification model that will have three brackets: ‘go’, ‘no-go’ and ‘may go’ areas.

The understanding is that while the ‘no-go’ areas will remain permanently free from coal mining activities, access to the ‘may-go’ areas could be given after investigation. “But the MoEF should fast track clearances for the ‘go’ areas so that mining can start at the earliest,” the source said. CIL officials claimed that, if fast track environmental clearance was provided, resultant mining could have a positive impact on production capacity within 4-5 years.

Coal requirement for power utilities in 2010-11 is estimated to be at 440 million tonne, whereas the availability from Coal India and other sources is expected to touch 388 million tonne, coal minister Sriprakash Jaiswal had said earlier this month.