Environment minister Jairam Ramesh has given his approval to open up Tara, Parsa East and Kante Basan coal-blocks in the Hasdeo-Arand forest region of Chhattisgarh. While announcing the decision, he said he had the "broader developmental picture in mind."
Ramesh, who is often said to be anti-development and anti-growth, allowed opening up of the coal blocks, while rejecting the recommendations of the Forest Advisory Committee (FAC).
In an order, Ramesh said he disagreed with the final recommendations of the FAC, which advised him to reject the proposals made by the Chhattisgarh government to open up the coal-blocks. "While FAC has to do its due diligence with single-minded focus, as the minister, I have to necessarily keep the broader developmental picture in mind and balance out different objectives and considerations," he said.
He added one of the reasons "for my rejecting the FAC recommendations arises from the imperative to sustain the momentum generated in the 11th Plan in terms of capacity addition (52,000 Mw, compared with 21,000 Mw in the 10th Plan)."
Giving the stage-I approval for the proposals, the minister said the stage-II approval would be "contingent" on the state government demonstrating "full compliance" with the provisions of the Forest Rights Act, 2006.
The ministry of coal had awarded the Parsa East and Kente Basan coal blocks to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) to feed two thermal power projects in Rajasthan. The Adani Group and RRVUNL had formed a joint venture firm, Parsa Kente Collieries Limited, to develop these mines. Tara block was allotted to Chhattisgarh Mineral Development Corporation. This is not the first time the minister overruled the recommendations of FAC. There have been occasions in the past when Ramesh allowed projects, while overlooking the recommendations of the FAC.
Earlier this year Ramesh permitted South Korean steel major Posco to set up steel plant in Orissa, despite FAC's recommendations for a rejection of the project. The minister also allowed mining by SAIL in the Chiria mine in Jharkhand, overlooking FAC recommendations.
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Ramesh also rejected proposals overlooking favourable recommendations of the FAC. An example of this is the Renuka dam in HP. FAC had been deliberating on the coal-block proposal for almost eighteen months.
The FAC submitted its final report on June 22, recommending the rejection of a proposal made by the Chattisgarh government to open up coal blocks.
On three occasions earlier---January 21, 2010, July 30, 2010 and October 22, 2010---Ramesh had concurred with the FAC's recommendations and rejected the proposals.
On his change of stand, Ramesh said "I now disagree with the final recommendations of the FAC for six reasons and have decided to give stage-I approval for the proposals." Citing six reasons to reject the FAC recommendations, he said the coal blocks are "actually not" in a "no-go area" in the Hasdeo-Arand forest region. "As long as mining is restricted to the fringe area and as long as the state government does not come up with fresh applications for opening up the main Hasdeo-Arand area, I am of the opinion that permission can be accorded for Tara, Parsa East and Kante Basan," he said. He added the FAC recommendations arose from the "substantial changes introduced in the mining plans as originally envisaged."
"When the project proponent is prepared to demonstrate some flexibility to accommodate our concerns, I think, we should also reciprocate," Ramesh said. Justifying his decision, Ramesh said, "My rejecting the FAC recommendations arises from the fact that both the state governments, Chhattisgarh and Rajasthan (which will use the coal mined at parsa East and Kante Basan), have been persistently following-up, since their power generation plans are closely linked with these coal blocks."
However, while granting the permission, the minister said, "Any more opening of coal blocks in the main Hasdeo-Arnad forest area would severely disturb the fragile ecosystem of the region." He also recommended the state government should be compensated through central assistance or thorough additional allocation of power from the central pool.