The Hindu Business Line : Coal India may talk tough to Bengal Govt

Coal India Limited may have taken a tough stance with regard to the latest controversy over the industrial investment proposals in the coal bearing zones of Ranigunj-Asansol area in West Bengal. The proposals are for setting up steel projects by Bhushan Steel, Videocon and Abhijit group and others.

The West Bengal Government previously ran into similar a controversy with CIL with regard to the proposed $2.5-billion Durgapur Aerotropolis project. After communications involving the Centre, State Industries Department and CIL finally reached an agreement on the 3,500-acre project in April.

Though a substantial part of the Aerotropolis project is planned on the coal bearing zone, CIL finally agreed to the State Government's proposal for a minor relocation of the airport city project freeing 400 acres of coal bearing land. The land is under lease hold of Eastern Coalfields Ltd, a subsidiary of CIL.

As part of the agreement, the State Government agreed to consult CIL before allotting land for all future industrial investment proposals in the coal-bearing zones of the state.

“We have also decided to identify alternative land for three investment proposals (Bhushan Steel, Videocon and Abhijit group) in the Durgapur-Asansol area to unlock mineable coal reserves,” the Principal Secretary, Mr Sabysachi Sen, told newspersons shortly after a meeting between the top officials of the State and CIL on April 8. The land for the three projects were identified without CIL's consent.

CIL also confirmed that relocation of these proposed projects would free a “very high quantity of quality mineable reserves”. Referred to as Ranigunj coal, the area has the country's most ancient coal reserves.

“We were confident that the agreement was good enough to help protect the precious natural resources. However, it now seems that the state administration is trying a roundabout way to backtrack on its own promises,” a senior CIL official told Business Line.

According to him, the district administration recently raised a number of queries regarding CIL's mining plan in the area and advocated freeing the same for the said projects.