A Group of Ministers (GoM) headed by the Finance Minister, Mr Pranab Mukherjee, has recommended ‘forest clearance' for Mahan and Chhatrasal coal mines. But this comes with some riders.

If approved by the Cabinet, this would pave the way for Reliance Power Ltd, Essar and Hindalco Industries Ltd, which have been allotted these blocks but denied forest clearance, to undertake mining activities.

“The GoM has referred to Cabinet, which will take the final decision,” the Coal Secretary, Mr Alok Perti, told newspersons after the meeting. However, the GoM has put some riders to these coal blocks that these companies would have to follow while exploiting them.

According to reports, the GoM has recommended most of the riders suggested by the Environment Ministry. One of the important riders suggested was spending five per cent of the revenues on corporate social responsibility (CSR) activities in the vicinity of the mining area.

The Mahan coal block located at Singrauli in Madhya Pradesh was awarded to a joint venture between Essar Power and Hindalco for captive use for the planned 1,200 MW and 900 MW projects, respectively.

Similarly, the Chhatrasal coal block in Madhya Pradesh was awarded to Reliance Power for sourcing fuel for its Sasan Ultra Mega Power Project. All these blocks were denied clearance for mining as they are categorised as ‘good quality' forest areas.

Earlier, the GoM had asked Ministry of Environment and Forests to re-consider its decision of holding back these blocks from mining activities. A committee formed by the Ministry reviewed the blocks and recommended for mining with riders.

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