Coal-dependent projects will’ve to get mine okay too

New Delhi: The environment ministry will have an integrated approach while dealing with clearance to projects dependent on coal, such as thermal power, steel and sponge iron manufacturing.

These projects will need to secure environmental and forest clearances for the linked coal block or mine before applying for clearances for the project. For now, the ministry has put on hold clearances for all coal-dependent projects, till status of environment and forest clearances for the coal supply source of domestic coal.

The decision has been conveyed in a circular issued by the ministry on Monday. As per circular, projects using domestic coal will now be taken up for environmental and forest clearance only after the linked coal mine or block has been granted the requisite clearances. While those based on imported coal will be required to provide a copy of a firm agreement between the coal supplier and project developer to be considered for environmental and forest clearance.

The ministry has argued that proper assessment of adverse environmental impact of these projects is only possible if information is available about quality of coal, source and distance from location of the project. Besides the environmental aspect, the quality of coal has a direct impact on the quantity of land required for the project. “In the absence of correct data on the quality of coal, the carrying capacity of the area may be computed wrongly, which may adversely affect the futuristic planning of the area based on environmental considerations,” the ministry circular states.

The environment ministry’s decision comes on the heels of several cases such as the Jindal Steel and Power project in Chhattisgarh where substantial progress and investment has been made for setting up a power or steel plant without requisite clearances for the coal mine or block. Jindal Steel and Power had applied for environment clearance for its 2,400MW power plant in the Raigarh district in Chhattisgarh without firm coal linkage. The project has received approved the linkage of coal for the first two units of 600 MW each on April 30. As for the remaining two units of 600MW, the power ministry recommended grant of coal linkage on the condition that these units are commissioned during the current Plan.

In many cases, absence of prior environmental and forest clearance for associated coal blocks or mines, has resulted in situations of fait accompli. Thereby forcing a situation where projects have had to be given coals blocks. The new system would avoid this situation as well as avoid tying up financial resources in a project which may not eventually get access to a coal source.