CII for fast track clearances for coal mining projects

CII has suggested that Government should facilitate fast track clearances for coal mining projects through a single window inter-ministerial body.

The suggestion comes in the wake of growing apprehensions that coal shortages could trip the power capacity addition targets of 90 to 100 GW during the 12{+t}{+h} Plan (2012-17) period.

Coal India Ltd has scaled down its production targets for 2011-12 to 452 million tonnes, down from the 460.5 million tonnes targeted in year 2010-11. The company could only produce 431.32 million tonnes in 2010-11 due to delays in getting forest clearances, non-completion of some contracts due to litigations and law and order problems.

Also, the inadequate availability of rakes last year has led to a pile up of coal stocks at the pit heads of various mines.

“Power shortages due to lack of coal may impact the industry severely unless these issues get addressed,” says Mr Chandrajit Banerjee, Director-General, CII, said in a statement.

The Power Ministry has estimated that about 17,000 MW of new and upcoming projects are not likely to start operations due to lack of coal. Plants with 5,593 MW were likely to generate only 42 per cent of their actual output due to fuel shortages.

In a bid ease the situation, CII has said that it is imperative for the Government to rationalise existing coal linkages to optimise distances of rail movement, free up rake placements and enable liquidation of idle stock at coal pit-heads.

Fuel supply pacts

Besides, the Government should also resolve the fuel supply agreement (FSA) issues currently plaguing 11th Plan projects which have been sanctioned long-term coal linkages, CII said in a statement.

The apex industry body also suggested that the Government set up an independent coal regulator to oversee mine planning and development, adherence to investment plans and compliance with production schedule. Further, the Government should enable private participation in exploration activity and open up new areas for captive coal mining. Also, the Government should enable competitive bidding of coal blocks by ushering in a regime of ‘production-linked payments' on the lines of ‘production-sharing contract' as in the case of New Exploration Licensing Policy (NELP) for discovery and exploitation of oil and gas reserves.

Further, the Government should also evolve a uniform Rehabilitation and Resettlement framework for coal mining projects besides building a roadmap to introduce commercial mining.

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