The long-drawn tussle between the environment and coal ministries over forest and environmental clearances for blocks is likely to be the main item on the agenda when Prime Minister Manmohan Singh meets them tomorrow.
The meeting, to be attended by other Cabinet ministers like Finance Minister Pranab Mukherjee and Power Minister Sushil Kumar Shinde, will deliberate upon the power and coal sector's performance in the last four years and devise a strategy for the terminal year of the 11th Five-Year Plan.According to government data, both the power and coal sectors have performed badly so far in the current Plan period and the reason is often attributed by many to the non-availability of coal in adequate quantities.
However, both the coal and power ministries have squarely put the blame on the Jairam Ramesh-led environment ministry for delaying approvals, citing green norms, thereby affecting key projects in their sectors.
In a note to be put before the Prime Minister in the meeting, the Coal Ministry observed, "The main reasons for the downward revision of production targets were delays in obtaining forestry and environmental clearances, land acquisition and related R&R (rehabilitation and resettlement) and law and order problems."
Lashing out at the Ministry of Environment and Forests (MoEF) for delays in the grant of approvals, the Coal Ministry said that Coal India had to revise its targeted production during the current fiscal to 554 million tonnes.
The Mid-Term Appraisal of 11th Plan had set a target for 630 million tonnes of production by Coal India in 2011-12, it said.
Making a strong case for relaxation in tough green norms like the Comprehensive Environmental Pollution Index (CEPI), which has been implemented in seven coal bearing areas as well, the Coal Ministry said as a result, "about 39 million tonnes of production loss from 17 projects of Coal India is anticipated in 2011-12".
It added that another 18 MT production loss is expected during the year due to delays in obtaining forestry clearance.
The Coal Ministry note also said that only 88 projects of Coal India have been approved by the MoEF in the first four years of 11th Plan against the originally planned 145.
Talking about the burgeoning demand-supply gap that has arisen due to the delays, the Coal Ministry says that about 696 MT of coal will be required to meet domestic demand in 2011-12, while availability is estimated at 554 MT.
The shortage of coal has also impacted the performance of the Power Ministry, which is already struggling to meet capacity addition targets under the current Plan.
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