Presented by
M K THAPAR & R L MATTOO
ADANI MINING PVT LTD
4th Coal Summit 2012
1
19 November 2012
COAL SECTOR MAJOR ISSUES
 Domestic Coal shortage has emerged as the biggest challenge particularly for Power Sector.
 Overall domestic coal shortage expected to be over 200million tones by end of 12th Plan period.
 Contribution of coal in the total national Energy requirement is foreseen to grow rapidly from present
level of 530MTPA to about 2BTPA by 2030 – 2031 necessitating growth rate of coal production by 7%
to 9% i.e. more than double from the present level.
Contd……….
4th Coal Summit 2012
2
19 November 2012
COAL SECTOR MAJOR ISSUES
 Bridging the demand supply gap through import of coal has its limitations due to :
a) Higher cost of import and price volatility.
b) Security issues – over dependence on other countries
mineral policies/foreign
suppliers.
c) Technical constraints in using higher portion of
imported
coal in plants designed
for domestic coal
 Inadequate capacity of Ports and Logistic constraints
KEY IMPERATIVE
Accelerated production of coal from Captive/New Blocks would be crucial to match with the demand and
bridge the shortfall for achieving the target GDP growth rate
4th Coal Summit 2012
3
19 November 2012
MAJOR BOTTELNECKS
 Key impediments in developing coal blocks are :a) Environmental Clearance and Forest Clearance
b) Land Acquisitions
c) Infrastructure Development
 Bottlenecks / impediments can be addressed by suitable
- Policy interventions
- Speedy Clearances and acquisition
- Close co-ordination and monitoring mechanism
4th Coal Summit 2012
4
19 November 2012
RESULT OF RECENT POLICY UPDATION
PRESENT
SCENARIO
EARLIER SCENARIO
Block allotment
Forest
Clearance
Block allotment
Forest
Clearance
PL
PL
Submission of FDP
Mining Plan
TOR
Application for
Forest Diversion
TOR
Mining Plan Approval
Stage 1 Forest Clearance
Public Hearing
Stage 1 F.C
EC
Stage 2 F.C.
EC
Stage 2 Forest Clearance
(Compliance of Stage 1 incl. EC)
Mining Lease
LA
Result :- Time Consuming, More Complicated, Interwoven
5
4th Coal Summit 2012
•
Mining Lease
LA
5
19 November 2012
CASE STUDY
OF A
GREEN FIELD COAL BLOCK
4th Coal Summit 2012
6
19 November 2012
ENVIRONMENTAL CLEARANCE
S.No
Activity
Actual time Taken
(in months)
Delays beyond Allottee’s Control
1
TOR for Mine & Washery
7
Separate TOR for Mine & Washery
2
EIA/EMP Studies
7
Within time line
3
Public Hearing & presentation
to EAC
12
Delayed due to state elections
4
Approval from MoEF (EC)
26
Go-no-Go issue
5
Consent to Establish by State
Pollution Control Board
6
Re scrutiny on the process which has
already been cleared by EAC
Total time taken for Environmental Clearance process is 48 months against the standard time limit of 18 Months
(MoC Milestone Guideline)
4th Coal Summit 2012
7
19 November 2012
FOREST CLEARANCE
S.No
1
2.
Activity
Actual time Taken (in months)
Collection, Certification and Submission of Records
14
Processing the application -State-Central-Regional office involves –
7
•Preparation of Application , CA, R&R & Submission
•Proponent to CCF (LM)
•CCF to DFO
•DFO to CCF (LM &FC)
•Site Inspection by CF
•CCF to PCCF (State)
•PCCF to Principal Secretary (Forest)
•Principal Secretary (Forest) to MoEF
•MoEF to RCCF (Central) (Site inspection by RCCF)
•RCCF to MoEF (Inspection Report)
•Stage – I Clearance by MoEF
1
1
1
1
2
1
1
1
Scattered Land Records
•Go-No-Go issue.
•Too many steps involved.
6
9
Total duration
31
4th Coal Summit 2012
Delays beyond Allottee’s
Control
8
Cont.......
19 November 2012
FOREST CLEARANCE
S.No
Contd…
Actual time Taken
(in Months)
Activity
Delays beyond Allottee’s
Control
Stage – II
3.
•
Deposit of NPV & Compliance report by proponent.
•
Submission of compliance report by DFO to MoEF through PS
(Forest)
• Issue of Final Clearance by MoEF
3
3
Process can be expedited at
State/Central level
3
Total Duration
9
Total time taken for Forest Clearance till Stage- II process is 48 Months
4th Coal Summit 2012
9
19 November 2012
LAND ACQUISITION & R & R
S.No
Activity
Actual time Taken
(in Months)
Delays beyond Allottee’s
Control
1
Compilation of Land Holding records and preparation of application and submission to
Revenue Department
9
Poor land holding records
Administrative process routing U/s 4(i)
2
• Forwarding proposal to Collector
• Conducting Gram Sabha by LAO/DM
• Notification U/s 4(i) by Collector
1
3
2
Total Duration
6
Land Acquisition process (Tenancy Land)
3
•
•
•
•
•
•
Hearing of Objections U/s ‘5 A’
Notification U/s 6 by LAO & its gazette Notification
Action U/s 8
Notice U/s 9(3) and hearing of individual tenants
Enquiry and award by Collector U/s 11
Compensation to Land Owners and physical possession from LAO
Total Duration
2
8
2
5
12
6
Scattered land holding
pattern
35
Contd…
4th Coal Summit 2012
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19 November 2012
LAND ACQUISITION & R & R issues
S.No
Contd…
Actual time Taken (in
Months)
Activity
Delays beyond
Allottee’s Control
R&R Issues
4
• Socio-Economic Survey & Preparation of R&R
Plan
• Scrutiny by Collector and placing before
District Rehabilitation Committee (DRC)
• Finalization of R & R plan and submission to
Collector
• R&R Site identification and submission to
Collector
• R & R site award by Collector
Total Duration
8
6
3
9
Identification of R&R
site and obtaining
revenue record of the
same took time.
9
35
Total time taken for Land Acquisition process is 48 Months against the standard time prescribed by MoC 36 Months
4th Coal Summit 2012
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19 November 2012
CLEARANCES – MITIGATION MEASURES

Issuing of Prospecting License and Forestry Clearance along with Block allotment Letter in case of unexplored blocks be considered.

Filing TOR application be done online.

MoEF may consider standardizing TOR for the projects based on experience of handling coal mining projects since adoption of EIA
Notification of 2006 which would reduce time in EC appraisal by atleast 6 months.

State Official to ensure completion of Public Hearing within the time frame notified in EIA notification i.e. 45 days.

Concept of Single window clearance is needed – By way of formation of inter ministerial/ inter department group who shall be authorized to
deal with such clearances in a time bound manner.

Compensatory afforestation be taken by project preferably through PPP mode with suitable mechanism by State/Central Government.

Alternatively like in case of UMPP, SPV Agency be created which takes all the clearances of coal block development which shall be transferred
to the block allottee.
4th Coal Summit 2012
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19 November 2012
Land Acquisition & R & R Issues – Mitigation Measures

Digitalization of Land Holding Records.

Regular updating of Land titles.

State to Identify Suitable Site for R&R on Intimation of Allocation of Coal Block-Thus saving time.

State Govt. should fix Floor Price and Ceiling Price for Compensation Rate for Land purchase from the
private parties.

Implementation of R&R Policy, addressing the genuine concerns of Local Villages/PAP’s , creating goodwill
and mutual trust.

Taskforce under chairmanship of Revenue Secretary of respective State be constituted to sort-out issues for
expediting the land acquisition process.
4th Coal Summit 2012
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19 November 2012
INFRASTRUCTURE – WHAT NEEDS TO BE DONE

Govt. to create railway and road infrastructure in Green Field Areas.

States to take initiative for construction of common rail/road corridors in potential coal fields.

Dedicated Rail corridors for coal transport needs to be speeded up preferably through PPP model.

New Rail links in North Karampur area, Raigarh area, Talchar area need immediate action as major part of
the future growth in production is expected from these areas.

Expansion of Port Handling capacity also needs to be put on fast track.
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19 November 2012
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19 November 2012