The Economic Survey 2010-11 has attributed lower coal output in the current fiscal to environmental curbs and poor law and order situation in key states such as Jharkhand and Orissa.

“The lower growth in coal production during the current year is due to environmental restrictions, particularly the application of comprehensive environmental pollution index (CEPI),” the Survey said.

Besides, the non-availability of forestry clearance to some projects, poor law and order situation in Jharkhand and Orissa and excessive rainfall in Western parts of the country also affected the output, the Survey said.

Coal production during April-November 2010 stood at 319.80 million tonnes as against 317.79 million tonnes in the corresponding period last year. “The growth rate in the production of raw coal increased from 5.85 per cent during 2006-07 to 7.98 per cent in 2009-10 due to enhanced production by all the stakeholders, especially captive blocks and large public sector units like Coal India and Singareni Collieries Company Ltd,” the Survey noted.

Imports to increase

While the demand for coal has been growing at around 10 per cent a year, the domestic supply has not kept pace. As a result, coal imports are expected to increase to 84 million tonnes in the current fiscal as against 67.7 million tonnes in 2009-10.

The Environmental Ministry had restricted mining in some 203 coal blocks after it classified the coal bearing areas, depending on the forest cover as ‘Go' and ‘No Go' areas. This had stalled coal projects — both public and private sector — with a potential of 660 million tonnes a year. About 154 projects of Coal India are in various stages of seeking environmental clearances.

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