Coal Shortage in India-Way Forward ( ) 1 Coal Shortage in India- Way Forward U Kumar Advisor (Coal Essel Mining & Industries Ltd Aditya Birla Group

Coal Shortage in India-Way Forward ( ) 2 For a developing economy like India, the prime mover for achieving required GDP growth is Energy availability and Energy security. In India, it is Coal which provide these. It accounts for almost 55% of country’s Commercial Energy needs and 66% of Power Generation. Even going forward, Coal is projected to maintain this dominant position in the country’s economy.

Coal Shortage in India-Way Forward ( ) 3 That the available Coal Resources in the country will support this arrangement can be seen from the Coal Resource position as on given below: Type of CoalProvedIndicatedInferredTotal Prime Coking Medium Coking Semi Coking Sub-Total - Coking Non-Coking Tertiary Coal Grand Total

Coal Shortage in India-Way Forward ( ) 4 About 60% of these resources are available within a depth range of mtrs and is therefore amenable to Opencast Mining Fast ramp-up of Coal Production can therefore be achieved to meet the country’s Demand.

Coal Shortage in India-Way Forward ( ) 5 And yet : a)The country’s economy is faltering on account of inadequacy of power arising out of Coal shortage for almost 5 years now. b)The Nation’s aspiration for “Power for all by 2012” has not been met. c)About mw of power generation capacity though ready for commissioning has been idling for coal shortage. The All India Demand Supply scenario is given below:

Coal Shortage in India-Way Forward ( ) 6 All India Coal Demand/Supply Scenario Figs in Mt TY X PlanXI PlanXII Plan (Act) Demand Actual Consumption (E)795.0 Indigenous Supply (E) Gap between Domestic Supply & Consumption met by Import (E) (E)- Expected

Coal Shortage in India-Way Forward ( ) 7 It may be seen from the above that: –Indigenous Coal availability has been falling short of requirement on a sustained basis and the gap between Supply and Demand has been increasing –There is steady increase in Import which starting from 43 mill tons in has already reached a figure of 146 mill tons. in –Going forward this trend is going to continue and the Import level is going to exceed 185 mill tons in (Terminal year of the 12 th plan).

Coal Shortage in India-Way Forward ( ) 8 Yearwise break-up of Import of Metallurgical Power and Power Grade Coal is given below: Figs in Mt Type of Coal Year Mettalurgical approx 50.0 (E) Power Grade approx (E) (E)- Expected

File :23/Strategies for Quick Augmentation of Coal Production 9 Coking Coal import understandable since our resources of this type of coal are rather limited Import of non-coking Coal difficult to digest since country has huge resources, bulk of it available at shallow depth & amenable to O/C Mining.

Coal Shortage in India-Way Forward ( ) 10 Basic reasons for this situation are: a)Difficulty in getting Forestry Clearance b)Difficulty in getting Environmental Clearance c)Difficulty in Land Acquisition d)Difficulty in Rehabilitation and Resettlement e)Inadequacy of Rail Evacuation facilities

Coal Shortage in India-Way Forward ( ) 11 Forestry Clearance The country has to take a view on Forestry Clearance in consideration of the following: –Damage to the Forest cover because of Mining is only temporary –As Mining front advances, decoaled area gets reclaimed and afforestated –Within 15 years of felling of trees in an area, full grown forest gets regenerated –The quality of regenerated forest in areas reclaimed after Mining has invariably been far superior to the original forest –Coal bearing area covers only 0.54% of total Land mass of the country. Forestry cover in the Coal Mining area accounts for just 0.16% of the total Forest Cover in the country.

Coal Shortage in India-Way Forward ( ) 12 Forestry Clearance –It should be obvious from the above that a liberal attitude towards Forestry Clearance for Coal Mining will not damage the Forest cover of the country but will go a long way in making adequate quantity of Coal available for economic progress of the country. –It is also suggested that when the proposals for diversion of Forest Land for Mining are considered. Project Proponents should be permitted to make a presentation. –Gratifying that decision has been taken for streamlining this system by digitizing it.

Coal Shortage in India-Way Forward ( ) 13 Environmental Clearance Obtaining this clearance sometimes involves as many as 5-6 presentations before the EAC. Things could be expedited if : –TOR format could be standardized –Based on the presentation made by the Project Proponents, the EAC could identify the deficiencies which could be communicated to them and they could respond to the EAC after taking care of these deficiencies. –Based on this response and if it is in order, the Environmental Clearance could be granted –It is also necessary that a Mining Expert should be a member of the EAC for Mining Projects.

Coal Shortage in India-Way Forward ( ) 14 Environmental Clearance –The concept of public hearing should also be re-examined in light of the evil practices that have crept into the system. –Only direct stake-holders should be permitted to participate in the hearings. –Gratifying that decision has been taken for streamlining this system by digitizing it.

Coal Shortage in India-Way Forward ( ) 15 Land Acquisition Land Acquisition in India has always been very difficult on account of our emotional attachment to Land. The recently enacted Land acquisition and Rehabilitation and Resettlement Act (LA&RR) will make Land Acquisition for mining projects almost impossible. This Act therefore must be amended to delete the provision for taking consent from 70%-80% of the land owners. Consideration should be given to : Taking land on lease instead of acquisition for all times Reclamation of mined out land to original status as far as possible

Coal Shortage in India-Way Forward ( ) 16 Land Acquisition Return of reclaimed land to the original land owners Payment of very generous lease rent during the period land used for mining Lump-sump grant to the land owners at the time of return there of so that they could make desired improvement in quality of land.

Coal Shortage in India-Way Forward ( ) 17 Rehabilitation and Resettlement Site for R&R should be chosen as close to the original habitat as possible Homestead land equivalent to the area of the original homestead to be made available. Generous compensation to be paid for the Home and other Assets. House Oustees to be assisted in constructing their houses and other facilities as per their choice Rehabilitation site to be fully developed with Roads, Water Supply, Power Supply and all community facilities.

Coal Shortage in India-Way Forward ( ) 18 Inadequacy of Rail Evacuation Facilities Major Coalfields which have the highest potential for increasing Coal production like Talcher, IB Valley, Mand- Raigarh, North Karanpura and Hasdeo Arand do not have adequate Rail-link or else the available link is grossly in- adequate. Thankfully, a decision has been taken for expediting construction of Rail links in 3 of Coalfields namely North Karanpura, IB Valley and Mand-Raigarh. These links must be completed as scheduled by Similar action should be taken for the remaining Coalfields.

Coal Shortage in India-Way Forward ( ) 19 For short term augmentation in Coal production following steps should be considered: Captive Coal Miners could be granted permission for producing Coal in excess of their own requirement with the condition that the excess Coal has to be given to Coal India Ltd. For such Coal, Coal India should pay to them a remunerative price which could be fixed by a Govt. appointed Committee. Mines belonging to Coal India Ltd and Singareni should be given blanket clearance for increasing production up to 50% of the limit given in their Environmental Clearance. Fortunately, some relaxation on these lines has been granted. Environmental Clearance should be granted for the entire Coalfield instead of the same being done for individual mines. Here again some progress has been made and Cluster concept has been introduced.

Coal Shortage in India-Way Forward ( ) 20 Inadequacy of Rail Evacuation Facilities The prohibited list in Contract Labour (Regulation and Abolition) Act should be amended so that deployment of MDOs gets legalised.