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LATEST NEWS UPDATES | Coal ministry shoots down phased mining plan by Rishi Shah & Rajeev Jayaswal

Coal ministry shoots down phased mining plan by Rishi Shah & Rajeev Jayaswal

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published Published on Jan 25, 2011   modified Modified on Jan 25, 2011

The coal ministry has rejected the Planning Commission’s suggestion to allow phased extraction of coal from prohibited areas saying that the robust demand for coal from expanding steelmakers and power generators fast outpaces the plan to mine in stages.

The Planning Commission had mooted the idea of phased coal mining in about 203 coalfields, that were earlier declared out-of-bounds for mining by the environment ministry.

But strong mining potential at the restricted coalfields region drove the government to refer mining in such areas to a group of ministers. It is estimated by a government study that the 203 coalfields have the potential to generate 1,30,000 mw of electricity annually.

“Mining activities can’t be postponed in an energy-starved country,“ said an official from the coal ministry. “Else, we will have to import coal at a high cost to meet the demand from power, steel and cement industries.“

The coal ministry is expected to soon present its case before the group of ministers. The coal ministry argued that a mining block is already divided into small patches for mining purposes and such an activity will not destroy the forest cover of the entire area in one go. “Mined areas are immediately put under afforestation while mining in other areas are still in progress,“ said the official quoted earlier.

The move is also aimed at reducing the coal import bill. International brokerages have suggested that the recent floods and affected rail infrastructure in Australia — one of the largest coal exporters to India — will further push up coal prices to about $400 a tonne. Australian Energy Publishing's Queensland coking coal index has risen to $365 a tonne, from $332 last week.

India is importing coal to meet a shortfall of about 80 million tonnes in this financial year. The Planning Commission has pegged the country's coal demand for 2011-12 at 713.24 million tonnes, while domestic supply is restricted to 591.78 million tonnes. The shortfall will be met through imports of coal, an item that is under the open general license, the official said.

The ban to mine 203 no-go areas by the environment ministry would affect the annual coal production by 660 million tonnes, the coal ministry official had said.


The Economic Times, 25 January, 2011, http://economictimes.indiatimes.com/news/economy/policy/coal-ministry-shoots-down-phased-mining-plan/articleshow/7357747.cms


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