First no go coal block with GoM for clearance

Environment ministry refuses forest clearance but refers Mahan block to GoM based on earlier compromise.

After turning down forest clearance to Mahan block in the Singruali coalfields,the environment ministry has asked a group of ministers to take a final call on the coal block allocated to Essar Power and Hindalco Industries in Madhya Pradesh. This will be the first such individual case being referred to the GoM chaired by Finance Minister Pranab Mukherjee.

The two companies are eyeing the Mahan coal block as a captive mine for their proposed power plants a 1,200 MW unit by Essar and 650 MW unit by Hindalco. The block falls in a dense forest area with rich biodiversity in a zone that has now been classified as no-go for coal mining. The environment ministrys move to let the GoM take a decision on the coal block is in keeping with the compromise solution regarding approvals related to mining projects falling in the no-go areas.

With the coal ministry strongly contesting outright rejection of all mining projects in no-go areas,environment minister Jairam Ramesh had proposed to take a re-look at some of these projects and clear those where damage to the forests could be minimised to his ministrys satisfaction. The others would be placed before the GoM for a decision,he had said.

The Mahan coal block is the first case to be referred to the GoM,with Ramesh explaining in detail why clearance has not been granted to the proposal.

Ramesh listed three factors in favour of granting clearance: The block was allocated to the companies in 2006,before the go/no-go distinction had been made; substantial investments to the tune of Rs 3,600 crore had already been made; the MP government had stressed the need for the power project to boost economic activity in the state.

He argued against clearance on four grounds: Destruction of vast natural forest cover and wildlife habitat; setting an unhealthy precedent for other projects; the projects not being based on supercritical technology; the Forest Advisory Committee failed to clear the project even in the absence of the go/no-go classification.