Indian Government Scraps 'Go, No Go' Policy to Improve Coal Supply

---

Researched by Industrial Info India (Delhi, India)--The coal shortage in India for the power and steel sectors has forced the government to review and abolish the "go, no go" policy, which was a point of conflict between India's Ministry of Coal and the Ministry of Environment and Forests (MoEF).

The coal shortage in India is 137 million tons, up from 43 million tons five years ago. The Group of Ministers under the government of India has now scrapped the "go, no go" policy, which essentially blocked coal mining activities in heavily forested areas. While the policy helped protect India's forests, it stood in the way of increased coal production.

Coal India Limited (CIL) (Kolkata, West Bengal) has 168 coal blocks that are awaiting approval from the MoEF, representing a combined production capacity of about 200 million tons per year. Total coal production in India was 456 million tons, while demand was 533 million tons. This gap could have been met easily if all of these projects had kicked off. The government will have to maintain a balance between environmental concerns and development.

Click on image at right for a table showing India's domestic coal demand, production, and the resulting supply gap.

To provide high-quality coal, CIL has planned 12 new washery projects at a cost of $555 million and a total capacity of 111 million tons. Industrial Info's Metals & Minerals Database covers these coal washery projects in detail. The MoEF had indentified high-density forest areas that coincided with coal-bearing regions as "no go" areas, while others were classified as "go" areas. This distinction helped miners focus on areas where they could carry out mining activities. In spite of implementing this policy, the miners had to wait for long time to obtain environmental clearances from MoEF. The mining sector feels that this will not affect the waiting period for environmental clearance. There is an urgent need to speed up the process of environmental clearance so that industrial sectors can meet their fuel needs.

View Plant Profile - 3030301 3030367 3030386
View Project Report - 300037873 300037931 300037961

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.