1. 29 MARCH 2010 Captive Blocks : Major Bottlenecks – Land, Environment / Forest Clearances 19.11.2012 4 th Coal Summit 2012 BP Singh Director (Projects), NTPC Ltd.

2. PRESENTATION OUTLINE Mine Development – The Key Processes Power & Coal Sector Scenario Major Issues / Bottlenecks in Mine Development : Land Acquisition, Forest & Environment Clearances Strategies For Dealing with Bottlenecks

3. INSTALLED CAPACITY All India total generation capacity 2,09,276 MW* Coal Based Generation capacity 1,20,103 MW (about 57 %) Capacity addition achieved during XI Plan 57,964 MW Coal based Capacity addition 48,540 MW (> 83%) PROJECTED CAPACTIY (Figs in GW) # Terminal Year 2017 2022 2027 2032 8% GDP Growth Rate 306425575778 9% GDP Growth Rate 337 488685960 Power Sector Scenario Dependency on Coal will continue as the primary & most reliable source for power generation in India. *Figures as on 31.10.2012 (Source – CEA Report) # As per Integrated Energy Policy As per Approach Paper for 12 th Plan, capacity addition target is 88425 MW, out of which 71228 MW through Thermal, 11897 MW from Hydro & 5300 MW from Nuclear.

4. At the end of 12 th plan, coal-based installed capacity of 165954 MW envisaged with coal requirement of 842 million tonnes. Capacity Addition & Coal Requirement

5. S.No Details2012-132016-17 a)Indigenous coal requirement455842 b)Indigenous coal availability from : i)CIL347415 ii) SCCL35 iii) Captive mines25100 c)Total availability of indigenous coal 402550 d)Shortfall in indigenous coal availability (a-c)53242 e)Requirement of imported coal to meet the shortfall in indigenous coal availability 46168 f)Requirement of imported coal for imported coal based projects 2440 g)Total requirement of imported coal (e+f) 55208 (Fig in Million Tonnes) Source: CEA / MOP, GOI Coal Demand-Supply Scenario in the Power Sector More emphasis required on domestic coal production – Thrust on Captive Mines

6. Source: CIL/ MOC, GOI Raw Coal Production in India V ery nominal increase in production since last 3 years (Almost Stagnant)

7. Govt. of India allocated coal blocks for Captive Mining since 1993 Captive Coal Block Allocation Source: MOC No. of Coal Blocks, allocated till date218 De-allocated till date29 Bank Guarantee deducted5 Coal production commenced in about 30 blocks and peak production capacity reached only in 9. ‘Delay in development’ is the reason for de-allocation as cited by MOC. Coal block development schedule of MOC needs a re-look and be made REALISTIC.

8. Detailed exploration and preparation of GR Mining Plan preparation and approval Land Acquisition Obtaining of Statutory Clearances Infrastructure Development OB Removal & Coal Production Mine Development – Key Processes

9. PLANNING / FEASIBILITY Exploration / Preparation of Geological Report Surface Master Plan Conducting Studies - Hydrogeological studies - Socio Economic studies - Transport studies - Environmental studies Mining Plan - Approval Land Requirement Applications for Clearances STAGE - I STAGE - II OBTAINING CLEARANCES Forest Clearance Environment Clearance LAND ACQUISITION AND REHABILITATION & RESETTLEMENT OF PAP’s Issuance of Notifications Calculation of Compensation Disbursement of Compensation Rehabilitation Action Plan Physical Possession of Land & Rehabilitation of PAP’s APPOINTMENT OF MDO STAGE - III CREATION OF INFRASTRUCTURE Rail Link Coal Handling Plant Approach Roads MINE DEVELOPMENT Removal of OB Coal Production Stages in Development of Coal Mine

10. With Regional, Promotional and Detailed Exploration by GSI, CMPDI, SCCL etc., the estimation of coal resources of India reached to 285 Bt. Reserves as on Geological Resources of Coal Proved% IncreaseIndicatedInferredTotal% Increase 1.4.20111140013.8137471343892858623.2 1.4.20101097983.7130654363582768103.5 1.4.20091058203.9123470379202672101.0 1.4.20081018292.7124216384902645352.7 1.4.2007990603.3120177381442573811.6 1.1.20069586611976937666253301 Exploration in India Source: MOC, GOI Estimates of coal resources during last 6 years : in Million Tonnes Govt of India may put more thrust on enhancement of rate of exploration.

11. Detailed Exploration As per the guidelines for detailed exploration, boreholes to be drilled in 400 meters interval. In case of detailed exploration in forest area, at present 20 nos. of boreholes allowed in 10 Sq. Km. area. For meaningful Geological Report, at least about 8 nos. of boreholes per Sq. Km. area required. MOEF may allow drilling of 8-10 nos. of boreholes / Sq. Km. in forest area without requirement of forest permission. Local resistance during exploration - State support is of utmost importance.

12. Main Bottlenecks in Captive Mine Development  Huge time being taken in obtaining of - Forest Clearance - Environment Clearance  Land Acquisition – problematic  Lack of coal transportation infrastructure

13. Forest Clearance – Long Process

14. 1.Estimation of Land Requirement 2.Application to Nodal Officer/PCCF/DFO for Forest Diversion 3.Survey of forest area, Enumeration of trees and demarcation of Forest land 4.NOC from Village Advisory Committee / Gram Samittee 5.NOC on jungle-jhari land / Revenue forest by State Govt. 6.NOC under FRA-2006 7.DGPS survey & its authentication by State Bodies like ORSAC (in Odisha) 8.Processing of Forest proposal : DFO - CF - CCF/RCCF - PCCF - Secy (Forest) State Govt - MoEF, New Delhi 9.Site Inspection by Regional office of MOEF – Submission of Report to MOEF, New Delhi 10.Presentation to Forest Advisory Committee of MOEF by AIG (Forest) 11.Approval of FAC recommendation by Hon’ble Minister of Env. & Forests 12.Stage-I forest clearance by MoEF, Delhi 13.Demand note from DFO for NPV of trees & Compensatory Afforestation - Payment by block allocatee, Identification of land for compensatory afforestation 14.Submission of compliance report of Stage-I clearance to DFO - CF - CCF/RCCF - PCCF - Secy (Forest) State Govt - MoEF, New Delhi 15.Processing of Stage-II proposal at MOEF – approval by IG / DG, Forests 16.Stage-II clearance from MoEF 17.Order by DFO/RCCF to start demarcation of forest land, Safety zone and CA areas 18.Approval of State Forest Deptt. to start tree felling and transportation of tree logs Forest Clearance – Cumbersome Process MOC schedule stipulates 6 months to complete all these activities – Unrealistic in present scenario

15. Forest Clearance - Factors contributing to Delay  Issuance of “No-Objection Certificate” on jungle-jhari by Dist Admn.  Issuance of “No-Objection Certificate” on Forest Rights Act by Dist Admn - Conductance of Gram Sabhas & certification of its proceedings.  Old / not updated land records / forest records, Mismatch of habitants / persons in actual possession of the forest land, wrt available land records.  Involvement of number of Central / State Government departments and slow processing of proposal at State Forest Dept. and MOEF.  Site inspection & submission of inspection report by Regional Office of MOEF to MOEF, New Delhi.  Non-availability of alternate land for compensatory afforestation.

16. Pakri- Barwadih Chatti- Bariatu KerandariTalaipalliDulanga * Important Pre-requisitesTime taken in months Approval of Mining Plan77114.59 NOC on jungle-jhari26223228NA Process Time taken in months Processing of Stage I proposal by State Govt. 5897.5- Site inspection and forwarding of report to MOEF 7473- FAC meeting and Stage I approval 9425- Stage II clearance49--- Clearance for tree felling6---- * NTPC lost 13 months for Dulanga coal block due to ‘No-Go’ area issue. NTPC’s experience in forest clearance

17. Forest Clearance – Suggested Measures Regular updation of land and forest records. Creation of land data bank by Forest Dept. in advance for Compensatory Afforestation. State Forest Department need to process the proposals within strict timelines. Process repetition like site inspection by PCCF as well as Regional Office of MOEF, etc. may be avoided. More number of Forest Advisory Committees (FACs) may be constituted by MOEF.

18. Geological Report Site Clearance / TOR Mining plan Approval Engagement of Agency Preparation of EIA/EMP Submission to SPCB Public Hearing NOC from SPCB Submission of Comprehensive EIA/EMP along with Schedule II Performa to MOEF Clearance by Expert Committee Environment Clearance Stage I Forest Clearance MOC schedule stipulates 6 months to complete all these activities – Unrealistic in present scenario Environment Clearance - Flow Chart

19. Pakri- Barwadih Chatti- Bariatu KerandariTalaipalliDulanga Key processes causing delaysTime taken in months Conductance of public hearing and NOC from SPCB 196387.53 EAC meeting and grant of clearance 21172110 *18 * NTPC’s experience in environment clearance * In-principle clearance accorded – final clearance after Stage-I forest clearance

20. Environment Clearance – Suggested Measures State Pollution Control Board may act in time-bound manner – Public Hearing Report submission Some sort of environment clearance for cluster of coal blocks may be thought of. MOEF may consider more number of Expert Appraisal Committees (EACs).

21. Land Acquisition – Factors contributing to Delay Processing of proposals / issuance of notifications and disbursement of payment by State Govt. / District Admn. Non-availability of land records / very old records with Dist Admn. Inadequate manpower at Block / Dist. level. Slow processing of Govt. land proposals at various level of State Govt. Absence of Policy for dealing with encroachers of less than 30 yrs. Approval of R&R Plan by State Govt. Local resistance - Law & Order situation Non-standardization of procedures – varying from State to State.

22. Land Acquisition – Suggested Measures Specialized land acquisition department / agencies by State Governments may facilitate land acquisition process such as IDCO in Odisha, MSIDC in Maharashtra. Special land acquisition cell at Dist. level. Uniform R&R Policy for Coal Mining. Regular updation of land records, digitization. Databank of land for public purposes. Maintenance of comprehensive and intelligent map database. Instant production of Cadastral maps of any scales, themes and sizes. Processing of land proposals – e-filing. Mining Industry can grow only with active support & involvement of State Govt.

23. Infrastructure Development Most of the major coalfields not connected with Railway infrastructure. Development of Railway infrastructure takes huge time – facing with issues like forest clearance, land acquisition, law & order situation, etc. Support of State Govt. lacks in creation of rail as well as road infrastructure. Obtaining of non-coal bearing area clearance troublesome. Some suggestions : Expeditious development of Rail / Road with State support Dedicated freight / coal corridor Master Network before allocation of coal blocks with firm plan for Rail corridor.

24. Captive Mining in India to excel To sum up ……..

25. Conclusion Active support & involvement of respective State Govt. MOC considering ‘Reserve Price’ for coal blocks – Milestone-based payment to State Govt. Special thrust of State Govt. for land record updation & digitization. Expeditious Environment & Forest clearances – Process simplification, Cut short process repetitions, Single-window approach, more nos. of FACs, EACs. Infrastructure Development : Expeditious development of Rail / Road with State support Dedicated freight / coal corridor Master Network before allocation of coal blocks with firm plan for Rail corridor. Special Task Force for monitoring the project implementation. Adoption of latest technology & best practices in Mining (UG & deep OC), deployment of high capacity HEMM, indigenous manufacturing. Incentive to captive coal mines to maximise production & to allow sale of surplus coal to other power generators after meeting own coal requirement for the life of the project.

26. Thank You