The coal ministry has cited law and order problems, especially in Jharkhand, Chhattisgarh, Orissa and West Bengal, inordinate delays in land acquisition and the considerably long wait for mining lease approvals as major roadblocks for coal projects.
The ministry, in its strategic plan released this week, said, “Law and order situation in many states, especially Jharkhand, Chhattisgarh, Orissa and West Bengal, have adversely affected coal mining operations and stopped the creation of much-needed infrastructural facilities like roads and railways in areas like Karanpura Coalfields. A more active involvement of state government authorities can prevent and eradicate these problems and facilitate smooth mining operations.”
Land acquisition is one major hurdle to expansion of coal projects or starting of new ones. The problems are basically relief and rehabilitation (R&R) issues such as delays in authentication of claims of tenants, the non–availability of valid title document, related court cases, rehabilitation and the demand for higher compensation.
A coal ministry official told Business Standard, “State governments should play a more active role in this regard. Delays in obtaining statutory clearances (environment and forest) and land acquisition cause delays in the commissioning of new coal projects. Law and order problems in some eastern states can adversely impact coal production and movement.” The official also said the ministry had taken an initiative for the constitution of an inter–ministerial committee to expedite land acquisition, environment & forest clearances, and this panel would include representatives of key ministries and state governments.
| THE COAL GOAL |
| * A fast-growing economy offers a huge domestic market (with relatively inelastic demand) for coal |
| * Wide gap between the price of domestic coal and that in the international market should give comfort to domestic industry and encourage higher investment in the sector |
| * But delays in various clearances, land acquisition continue to affect coal mining |
| * Opposition from various quarters to the opening up of coal sector to private sector investment for commercial mining will impede speedier growth of the sector |
| * Leveraging bilateral and multilateral relations for coal assets acquisition |
“The ministry aims at ensuing adequate R&R measures, in conformity with the national and state R&R policies. It will also make efforts to ensure acquisition of land to the extent required and its optimal utilisation,” said the offcial. “Greater awareness and appreciation from state government machineries are required to hasten the process of approval for development of new mines and expansion of the existing ones,” he said.
According to the ministry, coal reserves up to a depth of 1,200 metres had been estimated at 277 billion tonnes, as on April 1, 2010, and lignite reserves had been estimated at 39.07 billion tonnes, as on March 31, 2009. Of the 277 billion tonnes of coal reserves, 110 billion tonnes are proved reserves, 130.65 billion tonnes are indicated reserves and 5.6 billion tonnes are inferred reserves.
To enable and sustain high growth in the sector, companies will be directed to prepare a comprehensive plan by June 30 this year and give it to the ministry by the end of December. Once the plan is prepared, it would be implemented by March 31, 2016. “It has been proposed that an expert committee be formed by June 30, 2011, to look into the concerns, and come out with recommendations to the government by the end of December. The recommendations will be examined and a policy will be finalised by December 31, 2012,” the official said.