This will enable these projects to ramp up production by 25 per cent
Coal India Ltd. (CIL), which produces over 80 per cent
of the country’s coal, received a Christmas gift from the Centre last
week. A bounty that would help the world’s single-largest coalminer to
start work on about 15 coal projects slicing through some of the
time-consuming environmental procedures.
The Prime
Minister’s Office (PMO), which is now playing a proactive role to help
increase coal supplies, has asked the Union Ministry of Environment and
Forests (MoEF) to make necessary changes in the Environmental Impact
Assessment (EIA) notification of 2006 so that public hearings are done
away with and environment clearances come fast. This would enable these
projects to ramp up production by 25 per cent, adding about 45 million
tonnes annually and about 160 million tonnes within this Plan period,
which mandates CIL to add 180 million tonnes additionally. It was learnt
that CIL was petitioning the MoEF for long for this relaxation given
the fact that due diligence had already been done on these projects.
In
a way, this symbolises the proactive role played by the PMO through the
year. At times, nudging the country’s monopoly producer to give its
best, at times, creating a more enabling atmosphere for the giant to
perform.
It started with the issue of fuel supply
agreements (FSAs), which CIL’s independent directors found to be an
imposition, but the fact remains that in doing so, the PMO has taken the
consumers’ sentiment in its reckoning too. “The power sector’s mood is
now better,” said an analyst. In the case of price-pool issue too, the
PMO tried its level best to talk out issues as the demand-supply
scenario made it clear that import of coal would be inevitable.
However,
it is not only on sensitive issues such as price-pooling , FSAs or
environmental clearances — the PMO has taken a lead role in almost all
issues, including some apparently routine and less contentious ones such
as mechanism for detailed exploration by the Central Mine Planning and
Design Institute of India (CIL subsidiary) and introduction of new
technology. It has also taken meetings on the issue of constituting an
empowered group like the Foreign Investment Promotion Board for
single-window mechanism for clearing coal projects given the fact that
some projects are pending for seven to eight years.
Coal
sector experts say and CIL senior management concur that the role
played by the PMO has put CIL back on the growth track even as it put
matters in perspective while sensitising all about the obstacles faced
by CIL in its task.
And arguably, the PMO’s
intervention has come in at the right time. At a recent talk here, C.
Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council,
had flagged sectoral constraints such as availability of coal and
shortage of electric power as two areas of concern saying that these
needed to be tackled.
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