29 MARCH 2010

29 MARCH 2010

Captive Blocks : Major Bottlenecks – Captive Blocks : Major Bottlenecks – Land, Environment / Forest Land, Environment / Forest

ClearancesClearances

19.11.2012

44thth Coal Summit 2012 Coal Summit 2012

BP SinghDirector (Projects), NTPC Ltd.

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

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 306 425 575 778 9% GDP Growth Rate 337 488 685 960

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 12th Plan, capacity addition target is 88425 MW, out of which 71228 MW through Thermal, 11897 MW from Hydro & 5300 MW from Nuclear.

Capacity addition vis-a-vis coal requirement in 12th plan

125414

144389

159294165374 165954

842

737

650572

515

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2012-13 2013-14 2014-15 2015-16 2016-17

YEAR

Inst

alle

d Ca

paci

ty (M

W)

0

100

200

300

400

500

600

700

800

900

Coal

Req

uire

mnt

(Mill

ion

Tonn

es)

InstalledCapacity(MW)

CoalRequirment

At the end of 12th plan, coal-based installed capacity of 165954 MW envisaged with coal requirement of 842 million tonnes.

Capacity Addition & Coal Requirement

S.No Details 2012-13 2016-17a) Indigenous coal requirement 455 842

b) Indigenous coal availability from :

i) CIL 347 415

ii) SCCL 35 35

iii) Captive mines 25 100

c) Total availability of indigenous coal 402 550d) Shortfall in indigenous coal availability (a-c) 53 242

e) Requirement of imported coal to meet the shortfall in indigenous coal availability

46 168

f) Requirement of imported coal for imported coal based projects

24 40

g) Total requirement of imported coal (e+f) 55 208

(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

Source: CIL/ MOC, GOI

Raw Coal Production in India

Very nominal increase in production since last 3 years (Almost Stagnant)

Govt. of India allocated coal blocks for Captive Mining since 1993

Captive Coal Block Allocation

Source: MOC

No. of Coal Blocks, allocated till date 218

De-allocated till date 29

Bank Guarantee deducted 5

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.

• 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

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 - ISTAGE - I STAGE - IISTAGE - 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 - IIISTAGE - III

CREATION OF INFRASTRUCTURE

• Rail Link• Coal Handling Plant• Approach Roads

MINE DEVELOPMENT

•Removal of OB•Coal Production

Stages in Development of Coal Mine

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 % Increase Indicated Inferred Total % Increase

1.4.2011 114001 3.8 137471 34389 285862 3.2

1.4.2010 109798 3.7 130654 36358 276810 3.5

1.4.2009 105820 3.9 123470 37920 267210 1.0

1.4.2008 101829 2.7 124216 38490 264535 2.7

1.4.2007 99060 3.3 120177 38144 257381 1.6

1.1.2006 95866 119769 37666 253301

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.

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.

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

Forest Clearance – Long Process

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

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.

Pakri-Barwadih

Chatti-Bariatu

Kerandari Talaipalli Dulanga *

Important Pre-requisites Time taken in months

Approval of Mining Plan 7 7 11 4.5 9

NOC on jungle-jhari 26 22 32 28 NA

Process Time taken in months

Processing of Stage I proposal by State Govt.

5 8 9 7.5 -

Site inspection and forwarding of report to MOEF

7 4 7 3 -

FAC meeting and Stage I approval

9 4 2 5 -

Stage II clearance 4 9 - - -

Clearance for tree felling 6 - - - -

* NTPC lost 13 months for Dulanga coal block due to ‘No-Go’ area issue.

NTPC’s experience in forest clearance

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.

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

Pakri-Barwadih

Chatti-Bariatu

Kerandari Talaipalli Dulanga

Key processes causing delays Time taken in months

Conductance of public hearing and NOC from SPCB

19 6 38 7.5 3

EAC meeting and grant of clearance

21 17 21 10 * 18 *

NTPC’s experience in environment clearance

* In-principle clearance accorded – final clearance after Stage-I forest clearance

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).

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.

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.

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.

Captive Mining in India to excel

To sum up ……..

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.

Thank You