A parliamentary panel has expressed shock over the delay in forest clearances to 59 coal projects, hurting production targets by companies, engaged in coal mining.
"The Committee is shocked to observe that the inordinate delay in getting forest and environment clearances has been badly affecting the coal production target by the coal companies," said the Standing Committee on Coal and Steel.
The committee is constrained that as many as 59 coal projects have been held up for want of forest clearances, it said adding, "The committee deprecate that the (Coal) Ministry has failed to act as a facilitator on behalf of coal companies for getting necessary clearances from different agencies."
The country's largest producer, state-owned Coal India, which accounts for more than 85 per cent of the domestic production has already lowered its coal production target for the 2011-12 to 486 million tonnes from 520 million tonnes earlier mainly in view of such delays.
Coal Minister Sriprakash Jaiswal, in a report on status of implementation of the recommendations of the committee said ,"...It is a fact that forestry clearances are getting unduly delayed..."
However, he said, these issues have been taken up at highest level and both the Coal and Forest Ministries are meeting frequently to resolve the issues.
"Further, the issue of forestry clearances is also being addressed at the level of Prime Minister's office to resolve the pending issues concerned with different ministries.
The Coal and Mines Ministries are at loggerheads on the issue of classification of coal mining belt into 'go' and 'no-go' areas which saw the ministries of coal and environment locking horns.
As per such a classification, about half of the coal bearing forest area of nine coalfields has been declared no-go area, due to which, the coal ministry says, the country could see a coal shortage of 500 million tonnes in next few years.
Jaiswal had earlier expressed hope that, "A solution is expected before Coal India's initial public offer is launched." CIL is slated to launch its four-day public offer on October 18.
The issue is billed to be India's biggest till date and may raise up to Rs 15,000 crore.
Last month, after PMO's intervention, a high-level inter -ministerial panel had recommended that mining can be allowed in as many as 77 coal blocks that were made no-go affair by the Environment Ministry.
Now, as many as 126 blocks are in the 'no-go' area against the earlier 203.