The Environment Ministry has withheld clearance to Mahan coal block in Madhya Pradesh and referred the issue to the Group of Ministers on coal.

Allowing mining in Mahan coal block, located in a biodiversity rich area, would have destroyed good natural forest cover.

The Mahan coal block was jointly allocated to Essar Power Ltd and Hindalco Industries to fuel their power projects.

The Environment Minister, Mr Jairam Ramesh, has suggested the Sohagpur coal block in Shahdol district as a possible alternative coal linkage to Essar and Hindalco's power plants.

Mr Ramesh's decision is based on the recommendation of the sub committee of Forest Advisory Committee (FAC), which suggested that the clearance to Mahan coal block could be withheld as it would destroy good natural forest cover.

“I am not entirely clear why such a good quality forest area should be broken up for such a partial requirement,” Mr Ramesh said pointing out that Essar had itself said that the Mahan coal block would meet the requirement of its two 600 MW units for 14 years only.

Moreover, the FAC panel had also pointed out that the coal block is located in the catchment area of Rihand reservoir and that there was a high probability of excessive siltation due to the denudation of the slopes and hills when they are mined.

Also the quality of forest and tree cover was much higher than that is being claimed by Essar/Hindalco and the State Government.

“In this backdrop, I am unable to agree to consider the Mahan coal-block for Stage I clearance. However, keeping with the proposal I had made to the GoM on April 7 to resolve issues related to coal blocks in ‘no-go' areas, the Mahan coal block is therefore being submitted to the GoM for its consideration…” Mr Ramesh said.

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