1. 19 November 2012 4th Coal Summit 2012 1

2. 19 November 2012 4 th Coal Summit 2012 2 COAL SECTOR MAJOR ISSUES  Domestic Coal shortage has emerged as the biggest challenge particularly for Power Sector.  Overall domestic coal shortage expected to be over 200million tones by end of 12 th Plan period.  Contribution of coal in the total national Energy requirement is foreseen to grow rapidly from present level of 530MTPA to about 2BTPA by 2030 – 2031 necessitating growth rate of coal production by 7% to 9% i.e. more than double from the present level. Contd……….

3. 19 November 2012 4 th Coal Summit 2012 3  Bridging the demand supply gap through import of coal has its limitations due to : a) Higher cost of import and price volatility. b) Security issues – over dependence on other countries mineral policies/foreign suppliers. c) Technical constraints in using higher portion of imported coal in plants designed for domestic coal  Inadequate capacity of Ports and Logistic constraints KEY IMPERATIVE Accelerated production of coal from Captive/New Blocks would be crucial to match with the demand and bridge the shortfall for achieving the target GDP growth rate COAL SECTOR MAJOR ISSUES

4. 19 November 2012 4 th Coal Summit 2012 4 MAJOR BOTTELNECKS  Key impediments in developing coal blocks are :- a) Environmental Clearance and Forest Clearance b) Land Acquisitions c) Infrastructure Development  Bottlenecks / impediments can be addressed by suitable - Policy interventions - Speedy Clearances and acquisition - Close co-ordination and monitoring mechanism

5. 5 EARLIER SCENARIO Block allotment PL TOR EC Stage 2 F.C. Mining Lease Forest Clearance LA EARLIER SCENARIO PL Forest Clearance EARLIER SCENARIO PL Forest Clearance EARLIER SCENARIO PL Forest Clearance LA PRESENT SCENARIO Block allotment PL Submission of FDP TOR Stage 1 Forest Clearance Forest Clearance Mining Plan Approval EC Stage 2 Forest Clearance (Compliance of Stage 1 incl. EC) Mining Lease Result :- Time Consuming, More Complicated, Interwoven RESULT OF RECENT POLICY UPDATION 19 November 2012 4 th Coal Summit 2012 5 Mining Plan Stage 1 F.C Public Hearing Application for Forest Diversion

6. 19 November 2012 4 th Coal Summit 2012 6 CASE STUDY OF A GREEN FIELD COAL BLOCK

7. 19 November 2012 4 th Coal Summit 2012 7 S.NoActivity Actual time Taken (in months) Delays beyond Allottee’s Control 1 TOR for Mine & Washery 7 Separate TOR for Mine & Washery 2EIA/EMP Studies7Within time line 3 Public Hearing & presentation to EAC 12 Delayed due to state elections 4 Approval from MoEF (EC) 26Go-no-Go issue 5 Consent to Establish by State Pollution Control Board 6 Re scrutiny on the process which has already been cleared by EAC ENVIRONMENTAL CLEARANCE Total time taken for Environmental Clearance process is 48 months against the standard time limit of 18 Months (MoC Milestone Guideline)

8. 19 November 2012 4 th Coal Summit 2012 8 S.NoActivity Actual time Taken (in months) Delays beyond Allottee’s Control 1 Collection, Certification and Submission of Records 14 Scattered Land Records 2. Processing the application -- State-Central-Regional office involves – Preparation of Application, CA, R&R & Submission Proponent to CCF (LM) CCF to DFO DFO to CCF (LM &FC) Site Inspection by CF CCF to PCCF (State) PCCF to Principal Secretary (Forest) Principal Secretary (Forest) to MoEF MoEF to RCCF (Central) (Site inspection by RCCF) RCCF to MoEF (Inspection Report) Stage – I Clearance by MoEF Total duration 7 1 2 1 6 9 31 Go-No-Go issue. Too many steps involved. FOREST CLEARANCE Cont.......

9. 19 November 2012 4 th Coal Summit 2012 9 S.NoActivity Actual time Taken (in Months) Delays beyond Allottee’s Control 3. Stage – II Deposit of NPV & Compliance report by proponent. Submission of compliance report by DFO to MoEF through PS (Forest) Issue of Final Clearance by MoEF Total Duration 33393339 Process can be expedited at State/Central level FOREST CLEARANCE Total time taken for Forest Clearance till Stage- II process is 48 Months Contd…

10. 19 November 2012 4 th Coal Summit 2012 10 S.NoActivity Actual time Taken (in Months) Delays beyond Allottee’s Control 1 Compilation of Land Holding records and preparation of application and submission to Revenue Department 9 Poor land holding records 2 Administrative process routing U/s 4(i) Forwarding proposal to Collector Conducting Gram Sabha by LAO/DM Notification U/s 4(i) by Collector Total Duration 13261326 3 Land Acquisition process (Tenancy Land) Hearing of Objections U/s ‘5 A’ Notification U/s 6 by LAO & its gazette Notification Action U/s 8 Notice U/s 9(3) and hearing of individual tenants Enquiry and award by Collector U/s 11 Compensation to Land Owners and physical possession from LAO Total Duration 2 8 2 5 12 6 35 Scattered land holding pattern LAND ACQUISITION & R & R Contd…

11. 19 November 2012 4 th Coal Summit 2012 11 S.NoActivity Actual time Taken (in Months) Delays beyond Allottee’s Control 4 R&R Issues Socio-Economic Survey & Preparation of R&R Plan Scrutiny by Collector and placing before District Rehabilitation Committee (DRC) Finalization of R & R plan and submission to Collector R&R Site identification and submission to Collector R & R site award by Collector Total Duration 8 6 3 9 35 Identification of R&R site and obtaining revenue record of the same took time. LAND ACQUISITION & R & R issues Total time taken for Land Acquisition process is 48 Months against the standard time prescribed by MoC 36 Months Contd…

12. 19 November 2012 4 th Coal Summit 2012 12  Issuing of Prospecting License and Forestry Clearance along with Block allotment Letter in case of unexplored blocks be considered.  Filing TOR application be done online.  MoEF may consider standardizing TOR for the projects based on experience of handling coal mining projects since adoption of EIA Notification of 2006 which would reduce time in EC appraisal by atleast 6 months.  State Official to ensure completion of Public Hearing within the time frame notified in EIA notification i.e. 45 days.  Concept of Single window clearance is needed – By way of formation of inter ministerial/ inter department group who shall be authorized to deal with such clearances in a time bound manner.  Compensatory afforestation be taken by project preferably through PPP mode with suitable mechanism by State/Central Government.  Alternatively like in case of UMPP, SPV Agency be created which takes all the clearances of coal block development which shall be transferred to the block allottee. CLEARANCES – MITIGATION MEASURES

13. 19 November 2012 4 th Coal Summit 2012 13 Land Acquisition & R & R Issues – Mitigation Measures  Digitalization of Land Holding Records.  Regular updating of Land titles.  State to Identify Suitable Site for R&R on Intimation of Allocation of Coal Block-Thus saving time.  State Govt. should fix Floor Price and Ceiling Price for Compensation Rate for Land purchase from the private parties.  Implementation of R&R Policy, addressing the genuine concerns of Local Villages/PAP’s, creating goodwill and mutual trust.  Taskforce under chairmanship of Revenue Secretary of respective State be constituted to sort-out issues for expediting the land acquisition process.

14. 19 November 2012 4 th Coal Summit 2012 14  Govt. to create railway and road infrastructure in Green Field Areas.  States to take initiative for construction of common rail/road corridors in potential coal fields.  Dedicated Rail corridors for coal transport needs to be speeded up preferably through PPP model.  New Rail links in North Karampur area, Raigarh area, Talchar area need immediate action as major part of the future growth in production is expected from these areas.  Expansion of Port Handling capacity also needs to be put on fast track. INFRASTRUCTURE – WHAT NEEDS TO BE DONE

15. 19 November 2012 4 th Coal Summit 2012 15