Strategy for stepping up coal production in CIL

By

1. A K Debnath*
2. S.K.Dubey**
----------------------------------------------------------------------------------------------------------------------------------------------------ABSTRACT
India can not afford to restrict its growth on account of supply of energy. Coal, being the prime source of
energy in the country with a broader reserve base, has to take the major onus of increased energy supply.
Responsibility of fulfilling the coal supply requirement of the country primarily rests on Coal India
Limited(CIL). Further, this dominant status of CIL is likely to continue in foreseeable future. The gap between
the demand and indigenous availability of coal in the country has been rising. Presently, coal import of about
99 Mt is being made. The import requirement is projected to be 265 Mt by 2016-17 under business as usual
scenario and about 185 Mt under Optimistic scenario. This gap is likely to widen further beyond XII Plan
period leading to requirement of hefty import. In order to restrict the requirement of coal import, to the extent
possible, in coming years, CIL has no option but to raise its production level to a great extent by every
means. Coal production can not be started without possession of land, solving R&R problems, getting
Environmental and Forestry clearances as well as addressing the coal evacuation problems. Additionally,
issues like faster exploration requirement including drilling capacity augmentation, enhancing pace of
projectisation for existing and new coal blocks (out of 119 nos.), emphasis on coal production from
underground mines, etc., are required to be addressed by CIL for stepping up its production. Additionally, this
calls for meticulous identification of coal blocks suitable for mechanisation, increasing the level of
mechanisation in existing mines, introduction of state-of-the-art machines from overseas, establishing
indigenous equipment manufacturing capacity, ensuring optimal utilisation of the equipments as per
international standards, improving the working culture, etc. Manpower planning & development needs and
other requirements like skill development would also have to be made effective to motivate the workforce for
growth requirement.
------------------------------------------------------------------------------------------------------------------------------------------------

1.0

INTRODUCTION
Energy is central to development & poverty reduction measures and can be described as the
backbone of civilization. World's population is forecast to increase from six billion, currently,
to over eight billion by 2030. With this explosion of population and particularly, with the
emerging dynamic new economies, the pursuit of quantity-wise and quality-wise affordable
and reliable source of energy is presenting unprecedented economic, social and environmental
challenges. Finding ways to provide energy, those will lift emerging nations economies,
provide employment and boost quality of life across the globe, and to do so in a way which is
within the means of the common mass, is the major challenge before the energy providers.
Worldwide, coal is an extremely important fuel as it is most abundant and widely distributed
fossil fuel source and energy from coal is cheaper. About 29.6% of primary energy needs are
met by coal (source : BP Statistical June, 2011) and 39% of electricity is generated from coal.
About 70% of world steel production depends on coal feedstock.
The energy dependence on coal is more pronounced in case of developing countries like India
and China. In India, coal is currently the prime source of energy as it provides about 52% of
the commercial energy and about 67% of the electricity generation is coal based. The
-------------------------------------------------------------------------------------------------------------* Director (Tech./Planning & Design),Central Mine Planning & Design Institute, Ranchi-31.
* Technical Secretary to CMD, Central Mine Planning & Design Institute, Ranchi-31.

dominance of coal as energy provider is likely to continue in foreseeable future. It is estimated

(as per Integrated Energy Policy of Planning Commission of India-Aug, 2006) that
requirement of power generation capacity of 8 lakh MW by 2031-32 in the country will
translate into a massive need for coal availability to a level of over 2 billion tonnes / annum
based on domestic quality of coal. Even in the least coal dominant scenario with enhanced
contribution from renewable, nuclear and hydroelectric sources, the coal demand has been
estimated to be about 1582 Mt (632 Mtoe). Against the backdrop of this mighty coal demand,
the availability of lesser amount of coal indigenously, forcing increasing import of coal with
time, is a matter of concern and this in turn, would remain the prime driver of all initiatives
for increasing the coal production in the country. Moreover, the burgeoning coal demand
supply gap necessitates, Coal India Limited, the Maharatna Public Undertaking and the largest
coal producer company in the world, having the mandate to meet the countrys coal
requirement under the National Coal Distribution Policy, to come up with further initiatives
for stepping up coal production and meeting up the gap even through import of coal. This
necessitates pro-active strategies for bridging the gap to the extent possible.
2.0
2.1

PROJECTED DEMAND-SUPPLY GAP

COAL DEMAND

2.1.1

The Integrated Energy Policy (IEP) document of Planning Commission (Aug., 2006)
presented several alternative scenarios of energy mix to sustain a GDP growth rate of 8% till
2031-32 where the requirement of coal based energy has been projected to vary from 1022
Mtoe (2555 Mt) for a coal dominant scenario to 632 Mtoe (1580 Mt) in the scenario
considering utilisation of full potential of nuclear, hydro and renewable resources along with
all energy conservation measures. Under another option for sustaining 9 % GDP growth, the
IEP document has assessed demands of 708 Mt (283 Mtoe) by 2016-17 and 1303 Mt (521
Mtoe) by 2021-22 indicating a Compound Annual Growth Rate (CAGR) of 6.8 % during
2017-22.
The Working Group on Coal and Lignite for XII Plan period in its report has projected a
coal demand of 980.5 Mt by the terminal year of XII Plan i.e. 2016-17 as indicated in Table2.
Table 2 : Projected Coal demand in XI and XII Plan
Particulars

Total (Mt)

Demand in Terminal year of XI Plan i.e.

2011-12
Original
Mid Term
Actual
estimate
Appraisal
731.10

713.24

634.35

(in Mt)
Projected demand in
terminal year of XII Plan
(16-17) as per the WG for
XII Plan period (draft
report)
980.5

Customer/Sector-wise break up of assessed coal demand for 2016-17 is indicated in Table-3.

Table 3 : Customer / sector-wise break up of assessed coal demand for 2016-17

2

Customer / sector
Power Utility
Power Captive incl. fert.
Cement
Sponge Iron
Others

Total non-coking
Coking
Total

Demand assessed by WG (Mt)

682*
56.36
47.31
50.33
77.3

Demand in % of total
demand
69.6
5.7
4.8
5.1
7.9

913.3
67.2**
980.5

93.2
6.9
100

Based on projection of 17th Electric Power Survey for energy requirement of 1392 BU in 2016-17 and past trend of 70% of coal
based thermal energy requirement in the total thermal energy requirement..

**

2.1.2

Commensurate with the optimistic projection of steel production of 105 Mt in 2016-17.

COAL AVAILABILITY
Table 4 indicates the coal production during the X and XI plan periods Table-4 :Coal Production in India
Coal Producers
CIL
SCCL
Other PSUs
Total PSUs
Tata Steel & Captive Blocks
Meghalaya
Total Others
ALL INDIA
UG
OC
Total
Coking
Non-Coking
TOTAL

Actual production during X

plan
2002-03
2006-07
290.69
360.91
33.23
37.71
1.51
1.77
325.43
400.39
11.44
24.65
4.40
5.79
15.84
30.44
341.27
430.83
63.16
57.75
278.11
373.08
341.27
430.83
30.19
32.08
311.08
398.75
341.27
430.83
CAGR 5.6% in X Plan period

(Figs. in Mt)
Actual production during XI plan
2007-08
2011-12
379.46
435.83
40.60
52.21
2.11
2.71
422.17
490.75
28.38
41.98
6.54
7.21
34.92
49.19
457.08
539.94
58.90
51.83
398.18
488.11
457.08
539.94
34.46
51.65
422.63
488.29
457.08
539.94
CAGR 4.35% in X Plan period

Table5 indicates the coal production projection in 2016-17 by the Working Group on Coal
and Lignite for the XII five year plan.
Table-5 :Coal Production projection
Particulars
Projected coal production (Mt)

Production (Mt) in terminal year of XII Plan

under Optimistic Scenario
795

Delivering of requisite clearances within specified time schedule and addressing issues affecting
land acquisition, R&R, law & order and infrastructures for coal evacuation, effectively, in a time
bound manner have been spelt out as the conditions under the Optimistic scenario for the
envisaged production of 795 Mt by 2016-17. Contribution from CIL in this projected production
would be 615 Mt. However, it has also been projected that the production may reduce to a level
of 715 Mt in the country by 2016-17 if the requisite clearances and issues affecting land
acquisition, R&R, law & order and infrastructures for coal evacuation are not delivered in time.
CIL production in such condition (Business as usual) would be about 556 Mt.
2.1.3

PROJECTED DEMAND-AVAILABILITY GAP FOR COAL

Exhibit1 illustrates the widening of coal demand & availability gap over plan periods

Exhibit 1.
Note : Import figure of 2011-12 is provisional.

Production under the Optimistic scenario would result in a demand-indigenous availability gap
of about 185 Mt which may rise to a level of about 265 Mt in the Business As Usual scenario.
Furthermore, the demand-indigenous availability gap projected for 2016-17 would rise further
during successive plan periods. This necessitates immediate strategy to augment the coal
production to the extent possible to reduce the gap and import requirement. CIL, being the major
coal producer, and supplier of over 40% of the commercial energy of the country has to come
out with pro-active strategies for enhancing its coal production level.
4

3.0 STRATEGY FOR STEPPING UP COAL PRODUCTION IN CIL

Production achievement by CIL during XI Plan was at a CAGR of 5.6 % which came down to
4.4 % during XII Plan. Enhancement of coal production from a level of about 435 Mt during
2011-12 to a level of 615 Mt under Optimistic Scenario by 2016-17 would entail CAGR of
7.2%. Moreover, achievement of 615 Mt by 2016-17 by CIL would not be enough to limit the
increasing import of coal in the country and the country would have to resort to growing import
to meet the requirement of various consumers in the country. To restrict the import to the extent
possible by augmenting the coal production level, the strategies would involve the following
steps :

3.1

OPERATIONAL INITIATIVES BY CIL

3.1.1 ENHANCEMENT IN THE PACE OF EXPLOATION

Out of 18280 sq km of known potential coal bearing area in the country, 14013 sq km has
been covered by regional exploration. Out of the regionally explored areas, 7190 sq km has
been covered by detailed exploration, which is excluding area covered by detailed
exploration by block allocattees. Considering a rough estimate of detailed exploration for
about 800 sq km of area by the block allocattees, the balance of regionally explored area
which is yet to be fully explored is about 6000 sq km. This area of 6000 sq km is having a
density of about 1 borehole per sq km which is required to be raised up to about 15 to 20
boreholes per sq km through detailed drilling for projectisation for mining by opencast or
underground methods. CIL accounts for a part of this area which has been regionally
explored but pending for detailed exploration.
CMPDI, the Mini-ratna subsidiary of CIL, is the agency entrusted with the job of proving
the coal resources through detailed drilling. The present capacity of CMPDI including the
contractual agencies carrying out drilling under its supervision is 5 lakh meter per year. Out
of this, about 3.90 lakh meter of drilling was carried out in 2011-12 in blocks of CIL. The
drilling capacity of CMPDI, including outsourced drilling, needs to be enhanced (to over 10
lakh meter) to enable projectisation of coal reserves in blocks by CMPDI at a faster pace by
CMPDI. The present capacity of coal core analysis (CMPDI & CIMFR) is 60000 m of core
length which needs to be enhanced to about 1.5 lakh m by 2015-16. Furthermore,
commensurate increase in availability of geologists, geo-physicist, etc. and associated
infrastructure would be required for overall enhancement in the exploration capacity apart
from permission to explore in the forest part of the coal blocks with required bore-hole
density i.e. 15-20 boreholes per sq km.
The estimated meterage present in blocks for bidding, additional blocks allowed to be
retained by CIL, de-allocated blocks offered to CIL, XII Plan projects of CIL, CIL Blocks
and non-CIL blocks identified on the basis of the available potential blocks, including NonCIL blocks are listed in Table-6 below
Table-6 : Drilling meterage in identified potential blocks
Sl.
No.
1.0
2.0
3.0
4.0
5.0
6.0

Type of blocks
Blocks for bidding
Non-CIL blocks
Addl. CIL Blocks allowed to be retained by CIL
De-allocated blocks offered to CIL
XII Plan Projects
CIL Blocks

No. of
blocks
37
68
116
2
13
79

Estimated Meterage
(lakh meter)
13.70
19.03
24.25
0.38
1.16
10.79
5

Total

315

69.31

However, to sustain the programme of detailed exploration beyond XII Plan at an enhanced
rate of drilling of over 10 lakh meter per annum will need the commensurate enhancement
in the efforts on Regional/Promotional exploration.

3.1.2 FASTER PROJECTISATION OF NEW BLOCKS

Apart from necessity of maximizing production availability from the existing coal blocks of
CIL, from where 615 Mt of coal production has been envisaged by 2016-17, additional
blocks including the 119 nos. allowed to be retained by CIL recently, should be considered
for development at the earliest as soon as the exploration in such blocks are over. These 119
blocks have been tentatively estimated for a total capacity of about 240 Mty. Out of these,
45 blocks will have opencast mines and 57 blocks will have underground mines whereas as
the balance 17 blocks will be with mixed mines. Early development of these blocks will
provide CIL a comfort in meeting the demand-supply gap.
3.1.3 DEVELOPMENT OF PROJECT THROUGH MDO (MINE DEVELOPMENT
OPERATOR) ROUTE
Introduction of Development Operators in the infra-structure development in the country has
been of help in enhancing its pace of development. Though outsourcing plays a major role in
CILs performance in terms of coal production and OB removal, development of the mine
similar to development by MDOs is being practised only in few mines like Rajmahal OC of
ECL. Though earlier effort of CIL in identification of 7 high capacity Underground mines for
development through global bids have not been successful, development of Muraidih UG and
Moonidih UG of BCCL by operators may set a new trend in UG mine development by private
operators.
Nonetheless, CIL has no option but to try again for engagement of MDOs in underground mine
development through various initiatives and relaxations. Also, considering the delay in land
acquisition, law and order and other problems associated with open cast project development,
wider engagement of the Development Operators for open cast mines/projects might result in
crashing the activities of mine development and early realisation of the production from such
mines. Realisation of the gains of engagement of MDOs in some of its projects would also set
the trend in respect of wider engagement of the MDOs.
Participation of the developers, particularly for the underground mines, may be encouraged
through provision for the Mobilisation advance to such developers. Even the Performance
Guarantee clause, present in contracts of the coal company with these developers, might be
relaxed to motivate these MDOs to come forward. Also, the methodology of participation of the
MDOs need to be made easier / user friendly.
3.1.4

UNDERGROUND MINE CAPACITY ENHANCEMENT

Opencast mining method dominates the mining scenario in CIL as it produces over 91 % of the
coal produced by CIL. The reasons are growing demand, easier mining method where geomining adversities have much lesser impact, availability of bulk handling machineries, etc. All
of this has put the underground mining in the back stage.

Exhibit 2
Exhibit-2 indicates the reduction in importance of underground mining in CIL in the total
production scenario where the underground performance has dwindling trend over the years.
However, the limited shallow depth reserves amenable to opencast mining are likely to be
exhausted in foreseeable future (may be after 25-30 years) and the production from opencast
coal mines in CIL may reach a plateau. The resulting imbalance in production can not be set
right as large scale production suddenly is not possible from underground mines. Also, the
gestation period in case of underground mines is generally more in case of underground projects.
The reply lies in introduction of bulk production technologies in underground mines on urgent
basis as planning, execution and adaptation will take considerable time. Though, the efforts in
late 1970s and early 1980s of introduction of Power Support Longwall in CIL mines on a large
scale could not be successful due to various reasons, it became very successful in China. In
comparison to 400 longwall faces and an estimated 2.5 million tonnes of coal production per
unit per annum in China, India has only a few longwall faces with a very low production.
Status of initiatives taken by CIL for mechanisation and production enhancement efforts in
the recent past are indicated below :

Continuous Miners (CMs) have been presently deployed 7 mines of CIL with a total
capacity of 2.78 Mty as indicated below in Table 7
Table-7
Subsidiary
Company
ECL
WCL
SECL

No of
mines
2
2
4

Name of the mines, CM Capacity (Mty)

Jhanjra (0.36) and Sarpi (0.46)

Tandsi(0.51)*
NCPH Chirimiri(0.43), Sheetal Dhara Kurja(0.36),
Pinoura (0.48)and Rani Atari(0.18)
Total CIL
7
Total Planned Capacity: 2.78 Mty
* Kumbharkhani (0.18) contract expired in July 12
At present, two type of the bidding routes, namely Risk-gain sharing basis and
Hiring basis are being followed for deployment of CMs. Excepting Pinuara and
Rani Atari in SECL, all other Continuous Miners have been deployed on the basis of
Risk-gain sharing basis.
Also, 19 Underground Projects with Continuous Miner Technology with a total
capacity of 11.69 Mty have been approved as listed below in Table 8
7

Table-8

Subsidiary
Company
ECL
BCCL
CCL

No. of
Mines
2
1
3

WCL

SECL

MCL

Total CIL

19

Name of Mines (Capacity, Mty)

Jhanjra 2nd CM(0.51); Kottadih(0.42)
Block-II(0.45)
Chiri-Benti(0.84); Parej East(0.51); PiparwarMangardaha(0.61)
Dhankasa(0.91), Jamunia(0.45), Saoner-I(0.45),
Tawa-II(0.36) & Gandhigram(0.78)
Churcha Re-organisation(1.02), Khairaha(0.49),
Haldibari(0.30), Ketki(0.30) & Vijay (West)(0.30)
Talcher (West)(1.42), Natraj(1.15); Hirakhand Bundia
Incline(0.42)
Total Planned Capacity: 11.69 Mty

Identified list of mines/ projects where Continuous Miner can be deployed on hiring
basis (potential blocks but further study is needed prior to finalisation) are Table 9

Subsidiary
Company
ECL
BCCL

No. of possible
CMs
2
4

CCL

Total CIL

Name of Mines (Capacity, Mty)

Rangamati B ( Kanchanpur Sector)
Godhar ( Kusunda Area), AKW MC (Katras
Area), Phularitand ( Barora Area) & Akash
Kinari (Gobindpur Area)
Kalyani (Dhori Area)
Mandu ( Hazaribag Area)

Work orders have already been issued to MDOs to operate five mines (Jhanjra in
ECL, Kapuria, Moonidih (both XV & XVI seam), and Muraidih in BCCL) by
longwall technology. Likely capacity addition from these mines will be around 8.9
Mty. Several such mines are in pipe line.
Table-10
Sub. Company
Name of the Mines
Capacity (Mty)
BCCL
Moonidih XVI
0.7
BCCL
Moonidih XV
2.5
BCCL
Kapuria
2.0
BCCL
Muraidih
2.0
ECL
Jhanjra
1.7
Total
8.9
Efforts are also being made to identify suitable prospective sites for application of
Highwall Mining which is a mining method to extract coal from an exposed coal
seam at the terminating line of an opencast mine. Coal is extracted by driving a
series of parallel entries from the high wall up to a significant depth within the coal
horizon. This technology allows recovery of coal blocked in the batter in opencast
projects. At present, this technology has been implemented in Sharda Opencast
project of SECL.

Geo-mining condition of Indian coal deposits has been the major reason responsible for this
lacklustre performance in coal production from UG mines. Apart from the successful
8

implementation of the aforesaid actions by CIL, a deeper assessment needs to be made in

finalisation of the strategies which may include the following points

Planning of all new mines with higher degree of mechanisation i.e. with Longwall, Cont.
Miners, etc. wherever applicable.

Preparation and adherence to Time-bound technology plan including introduction of new

technology to improve productivity.

Preparation of road map with engagement of MDOs.

Separate cadre in CIL for Underground mining with attractive avenues to motivate for
performance.

Preparation of Infrastructure development plan including prioritisation of construction of

rail/road/railway siding and faster development of infrastructure for UG mines.

Creation of machinery manufacturing facilities to support mechanisation.

3.1.5

ENHANCING COAL EVACUATION CAPACITY THROUGH INFRASTRUCTURE

DEVELOPMENT
Infrastructure development (rail, road & power) in coalfields, particularly in new emerging
coalfields, though call for considerable investment, is essential to augment the evacuation
capacity of coal from its existing level. Necessity of establishing and expanding the
infrastructure facilities (rail, road and power) in new emerging coalfields like IB Valley,
Talcher, Mand Raigarh and North Karanpura coalfields can be established from the future
production assessment from these coalfields as indicated below (source Masterplans
prepared in 2010)
Particulars
NORTH KARANPURA COALFIELD

CIL

Non-CIL / Captive

Total

26
110.0

20
97.5

46
207.5

23.17
86.83

0
97.5

23.17
184.33

41

23

64

Capacity (Mty)

86.0

5.0*

91.0

Existing Production (Mty)

4.44

0*

4.44

Future Production (Mty)

86.0

5.0*

91.0

No. of blocks
Capacity (Mty)

33
156.89

31
227.70

64
384.59

Existing Production (Mty)

Future Production (Mty)

59.74
152.32

196.56

59.74
348.88

IB-VALLEY COALFIELD
No. of blocks
Capacity (Mty)
Existing Production (Mty)

23
138.77
44.34

18
74.65
0.50*

41
213.42
44.84

Future Production (Mty)

118.19

73.50

191.69

No. of blocks
Capacity (Mty)
Existing Production (Mty)
Future Production (Mty)
MAND RAIGARH COALFIELD
No. of blocks

TALCHER COALFIELD

As per the Master Plan of North Karanpura coalfield, construction of railway lines and
electric power arrangement will require about Rs. 2500 crore of investment. Similarly, as
per the Master Plan of Ib Valley coalfield, establishing rail network for MCL projects will
require about Rs. 470 crores. Considering the necessity of infrastructure development in the
coalfields in entirety, there needs to be a mechanism of joint sharing of the investment
requirement in these infrastructures between CIL and the existing and future captive
9

producers. There may be a case where CIL can invest initially and which may be shared at
later stage by other users including captive parties.
3.2

OTHER STEPS INCLUDING POLICY INITIATIVES BY THE GOVERNMENT

In order to maximize production of coal, the various limiting factors, deterrent to increasing
production and severely faced by the coal sector, need to be addressed by the Government. The
Government has to take certain initiatives in this regard. The issues are :

3.2.1

LABOUR LAWS
Coal mining sector should be allowed to have exemption from provisions u/s 10 of Contract
Labour (Regulation & Abolition) Act 1970 (Prohibition of employment of contract labour).

3.2.2

LAND AND R&R

Land acquisition is proving to be one of the major hurdles in starting coal mining projects and
expansion of the existing ones. It is mainly due to this reason that CIL is unable to plan major
enhancement of coal production. Shifting of people from places where land has already been
acquired is also one of the hurdles for enhancement of coal production.
Actions need to be taken by the Govt. for constitution of Task force in the concerned State
Government Secretariat to help the companies in acquisition of land. This Task Force may be
headed by the Chief Secretary of the State with members from Environment and Forest Deptt.,
higher officials from concerned subsidiary companies with representatives from Ministry of
Power and Ministry of Coal.
Additionally, enactment of central legislation is required to prevent habitation over endangered
coal bearing areas and establishing suitable authority. Construction over coal bearing areas
should be prohibited once notification under section 4(i) of CBA is made in place of section 7.
Additionally, the following may be suggested to streamline the land and R&R problems - .

Identification of Project affected families (PAFs) at the time of project conceptualization

stage itself for timely action.
Identification of R&R site, providing adequate infrastructure and suitable amenities before
land acquisition.
Continuous dialogue with PAFs with an objective to identify their actual requirement by
involving the village panchayats and State Govt. authorities. Accordingly the actions are to
be taken.
Ownership verification with family tree jointly by mining companies and state district
authorities.
Finalization of PAFs and display of the list on the notice board and website.
Categorization of PAFs as per their entitlement in terms of the agreed policy.
Free shifting of belongings of PAFs for smooth acquisition & land possession.
Maintenance of updated & correct land records by State Land & Revenue Department.
Suitable compensation to the affected persons for ensuring reasonable regular income for
sustenance and livelihood in terms of National Land Acquisition and R&R Bill, 2011or
any other approved policy.
10


3.2.3

Strengthening of land and R&R Department at all levels of CIL for timely action and
follow up with State authorities.

ENVIRONMENT CLEARANCE (EC) AND FORST CLEARANCE (FC)

The EC process takes about 14 months excluding the time consumed in Public Consultation
process. Main reasons for delay in EC as observed are

Obtaining ToR from MOEF for each and every proposal specially when more than 86%
conditions are common for OCP & U/G mines. Thereby leading to repeatation of the
process.
Delayed Public Hearing and issuance of PH proceedings by SPCB. The time limit
prescribed for public consultation/hearing, including receipt of proceedings, is although 45
days but the time taken is much more and in some cases, it is even more than 2-3 years.
Linking of EC with FC.

SUGGESTED MEASURES FOR EXPEDITIOUS EC PROCESS :

Standard ToR for OC and UG mines should be circulated by MoEF so that baseline data
generation and preparation of EIA/EMP is taken up without going in for ToR presentation
at MoEF and obtaining ToR .
Dispensation of public hearing in case of projects already having EC and fresh EC is
required because of increase in production only without involving any increase in land
area).
Dispensation of public hearing in case of projects having only forest land.
Dispensation of public hearing in case of UG projects as there is negligible environment
degradation.
If SBCB does not complete PH process within stipulated time, MoEF should accept the
EIA/EMP for EC. The EC may however be accorded only after the recommendation of
SPCB thorough PH proceedings.
Delinking of EC with FC as long as no forest land is used for mining and mining related
activities.
Coalfield wise EC so that the excess production by any project does not attract the
requirement of fresh EC as long as the combined production is within the EC capacity.

SUGGESTED MEASURES FOR EXPEDITIOUS FC

Once the FC application is received by the State Forest authority from the project proponent,
all the deficiencies in the application should be informed to the applicant at a time preferably
within 2-3 days. The process of the scrutiny should be very transparent so as to avoid and
identify the delay and also to pin point the responsibility. The deficiencies should be
resolved by mutual discussion within 15 days.
State should maintain the correct and updated record of the forest land to avoid
resubmission.
State should ensure its recommendations to MoEF in a time bound framework as per
Forest (Conservation) Rules.
After the stage -1 clearance is accorded, the proponent should be allowed to start the
activities and the forest land should be transferred once the required payments towards
NPV, compensatory afforestation is made by the coal companies to the concerned State
Government.
11


4.0

Strengthening of land and R&R Department at all levels of CIL for timely action and
follow up with State authorities.

CONCLUSION
From the above, it can be construed that the appetite for energy in the world is growing,
particularly in developing countries like India, as it is fast on course to industrialization and
urbanization. Onus of fulfilling the coal supply requirement of the country primarily rests on
CIL. CIL is likely to remain as a dominant player in Indian coal industry in foreseeable
future also. In order to restrict the gap between demand and indigenous coal availability to
further rise, the extent possible, in coming years, CIL has no option but to raise its
production level to a great extent by every means. Coal production can not be started
without possession of land, solving R&R problems, getting Environmental and Forestry
clearances as well as addressing the coal evacuation problems. Additionally, issues like
faster exploration requirement including drilling capacity augmentation, enhancing pace of
projectisation for existing and new coal blocks(out of 119 nos.), emphasis on coal
production from underground mines, etc., are required to be addressed by CIL for stepping
up its production.
The views expressed in this paper are those of the author only and not necessarily of CMPDI.

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