MINUTES OF 49th
EXPERT APPRAISAL COMMITTEE (EAC) (THERMAL & COAL MINING) MEETING HELD ON 14th-15th
MAY 2012 IN SCOPE COMPLEX,
The 49th meeting of the reconstituted EAC (T &C) was held
on 14th-15th May 2012 in SCOPE Convention Centre, SCOPE Complex,
The minutes of the 47th
meeting of EAC (T&C) held on 23rd-24th April 2012 was confirmed.
The agenda items were taken up as given
below:
1. Bithnok Lignite Mine Project (2.1 MTPA) of M/s Neyveli Lignite Corporation
Ltd. to be located at Bithnok,
District
Director, MOEF informed that a letter dated 11.05.2012 was
received from the project proponent, namely M/s Neyveli Lignite Corp. Ltd
requesting for deferment of consideration of their project to the next EAC
(T&C) meeting.
2. Special
Agenda Item of EAC (Thermal Power & Coal Mining) - Meeting with Chairman,
Coal India Ltd.
Chairman, EAC Committee (T&C) welcomed Shri Narsing Rao, Chairman, Coal India
Limited and congratulated Shri Rao on his appointment as Chairman, Coal India
Ltd. and wished him all success and thanked him for giving his time to attend
the meeting. Chairman, EAC stated that Coal India Ltd. being the single largest
coal producer in the country, has a number of challenges in terms of meeting
targets of coal production. Chairman, EAC stated that the meeting with the
Chairman, CIL could help address the various issues identified by the EAC
(T&C) from time to time during the process of appraisal of coal projects and
in further streamlining the environmental clearance process for projects of
Coal
Chairman, CIL discussed the following issues:
(i)
Chairman, Coal
India Limited informed that during 2011-12, production of coal from CIL was
435.84 MT against the projected target of 447 MT Coal and of this, about 70% is
for Thermal Power Plants. Chairman, CIL informed that CIL has the option to import the coal to meet the deficit, and many public
sector companies are importing the coal. In current year, about 40 MT of coal
would be imported.
(ii)
In regard to
supply of coal to power utilities through the FSA route, Chairman, CIL informed
that the prevalent practice has been that FSAs are entered with Power, Cement
and Steel Sectors and CIL has recently
signed Fuel Supply Agreement (FSAs) with several companies of power, steel and
other sectors. Of these, 13 FSAs have been signed with power utilities and 51
FSA are yet to be signed. The process of obtaining bank guarantees has also
become difficult in the event that an assured supply of coal may not be available.
Chairman, CIL informed that the Coal Policy was updated in 2007 whereby
Central PSUs/Private companies are now authorised to give surplus coal
transferred to nearest CIL subsidiary for sale of coal through e-auctions in
open market.
(iii)
Chairman, CIL
informed that only a limited amount of coal produced by CIL has been sold by
e-auction for such units that are pit-head, without access to railway
siding/transport by rail and are small traders and consumers. The CIL sold a
total of 38 MT (7.5%) during 2011-2012 by e-auction. The current levels of coal
production and that forecast during the 12th Five-Year Plan for CIL,
may not meet the entire requirements of the power sector through the FSA route.
(iv)
Chairman,
CIL also explained the background on the allocation of coal blocks for captive
coal mining of mainly Power and Steel sectors and in this context, the new
blocks that are now planned to be auctioned by the Ministry of Coal were also
discussed.
In regard to issues concerning coal mining, the following
issues were discussed:
(i)
Chairman,
EAC (T&C) stated that during pre-independence period and during the first
few decades following independence, coal mining in our country was largely underground.
In the mid seventies onwards and to the present, there has been a gradual but
definite shift towards opencast mining for meeting coal production targets. As
a result, much of the expertise available in the country for UG mining has been
lost over the years. Presently, the trend towards opencast mining is so high
that coal mine projects are being conceived by CIL/CMPDI/captive coal mining
companies even upto mining depths of 400m, which may be better from coal
conservation point of view, but cause significantly higher environmental damage
often ignoring the environmental and social issues thereof. The EAC requested
that coal projects, right from formulation stage, must incorporate/address the
environmental/social aspects of the coal mine projects and make appropriative
choices of mining methods and technologies. Chairman, EAC desired that Mining Plans should be prepared by a multidisciplinary group comprising
of professionals with expertise in areas such as Mining Engineering, Ecological
Restoration, Sociology, Mines Safety, etc. and cost of such project must appropriately reflect the costs for damages/destruction of
environment.
(ii)
Chairman,
CIL informed that both
(iii)
It
was explained that one of the reasons for UG mining not having taken off in a
large way is that the projects have a long gestation period and requirement of
a minimum seam thickness of about 2m. The EAC stated that although, the cost of
production by UG mining appear to be higher, it is so because the costs of
permanent changes to landuse, land degradation and damage to ecosystems,
permanent loss of livelihood and associated social impacts are not
reflected/integrated in the cost estimates of the projects of opencast
coalmines of CIL, making the cost-benefits skewed in terms of actual returns to
the nation. The EAC requested that this issue is particularly important,
especially in areas where there are dense pristine forests and prime
agricultural land. The EAC requested the introduction of a well laid out
“Corporate Environmental Responsibility” in Coal India companies vide MOEF
Circular dated 26.04.2011.
(iv)
The
EAC emphasised a strong need for a dedicated cadre of professions which
includes technical persons drawn from environmental and social sectors in both
Coal India as well as in CMPDI. The EAC also requested that such a Cadre should
be made as an independent stream with good promotional avenues and with
equivalent posts as in Planning and Operations of Coal India Subsidiaries, so
that the environmental and social aspects do not get ignored for achieving
targets of coal production. In this context, the existing system of the working
of CIL, CIL subsidiaries and CMPDI and powers of decisions making were discussed.
(v)
In
regard to opencast mining, the EAC emphasised the need for sequential operation
of quarries and backfilling of mine voids to minimise the need for external
(vi)
The
EAC also stated that the concept of habitat restoration of mined out areas similar
to that in pre-mining period is an integral part of the projects and requires
greater attention. The Guidelines formulated by the Ministry of Coal require
being implemented by the coal companies. The EAC stated that projects are kept in suspension for future expansion of mine and
desired that such mines should be scientifically closed vide provisions of the
regulations. The EAC stated that there has been a divergent view between the
EAC and the coal companies on the matter of filling up of mine voids upto
30-40m depth for ecological productivity, due to cost considerations. It was
decided that this matter requires to be discussed in greater detail.
In this context, it was informed that BCCL has already taken up the
reclamation work on two OB dumps of about 7 ha through the technical guidance
of Prof C.R.Babu, Prof Emeritus,
(vii)
In
the context of backfilling of mine voids, the Flyash Notification 2009, which
has listed dumping of flyash into mine voids as an option was discussed. The
Committee expressed its reservations that unless the long-term effects are
studied and appropriate mitigative measures are suitably in place, flyash
dumping can lead to heavy metal contamination of ground water aquifers of
coalfields.
(viii)
The
EAC also was of the view that many projects are started without completion of
exploration of coal blocks and as a result, projects are formulated not always on
the basis of appropriate technology and mining methods for the total reserves extractable/mineable
found in the block.
(ix)
The
EAC emphasised the need for shifting from manual operations (including manual
loading) to mechanised operations, as it was noted that there are presently there
is a large work force employed for manual operations alone, the mechanised
operations are also more efficient (1.5 output/man shifts as compared to 0.5
with manual loading overall), but also less polluting, safe and environment-friendly.
(x)
The
EAC stated that until recently before captive coal mining was introduced in the
country, coal blocks were being mainly operated by Coal
(xi)
EAC (T&C) stated
that in order to minimise fugitive dust emissions in the coalfields, a 3-tier
green belt is required to be developed all along the coal transportation
routes, between mines and mine operations and habitations, all
vacant/undisturbed areas and in reclaimed areas. It was the view that green
belt development in coalmining areas requires greater attention.
(xii)
The EAC (T&C)
stated that since more and more projects are being outsourced, the issues
concerning environment and quality of life of the outsourced personnel
including providing a colony for the outsourced personnel with amenities and issues
such as occupational health and safety of the outsourced personnel need to be
given equal importance.
(xiii)
The EAC (T&C)
appreciated that the CIL has adopted a Policy for earmarking Rs 5/T of coal
produced and project specific CSR for Rs 5/T of coal to be spent within in 10
km study area around the project Plan are being prepared. The EAC stated that an
estimated Rs 218 crores has been earmarked for 2011-12 and details of yearly
spending on CSR need to be documented. It was stated that Micro Planning of
spending CSR budget is essential in consultation with the local administration
and local communities. Reports on Third Party Evaluation of the amount spent
and the specific activities also need to be brought out and made a part of
Corporate Social Responsibility of Coal India Subsidiaries.
(xiv)
The EAC (T&C)
desired that an independent post-project monitoring and Third Party Evaluation
of implementation of the EC granted to coalmine projects and audit of money
spent on CSR, EMP, and R&R should be regularly undertaken through
recognised institutions of relevant discipline and their reports made an
integral part of the reporting process of the Coal India companies and also
regularly uploaded on the companies’ websites.
(xv)
The matter of supply of poor-quality coal being supplied to TPPs and in
particular, the example of coal from WCL supplied to MAHAGENCO STPS at
Chandrapur, for which the EAC had made a site visit on 27.09.2011, was
discussed. Member Secretary (Thermal) stated that coal
characteristics including ash content, moisture, presence of trace metals in
flyash, etc are important; therefore, regular analysis of coal should be
carried out by CIL as coal from each coalfields has its own characteristics.
In this context, DD
(BS) informed that the National Green Tribunal has recently issued an Order on
the presence of radioactive content in fly ash and hence the radioactive
content in coal should also be assessed at the coal mines and characterization
of each coal mine on the presence of radio active content in coal is very
important. DD (BS) further stated that monitoring of same is required. DD(BS)
further stated that the National Green Tribunal has also expressed concern on
the presence of mercury in coal.
(xvi)
The Committee
desired that CIL implement a plan for establishment of washeries for washing poor-grade
coal. Member Secretary (Thermal) informed that coal with 34% fly ash is insisted
upon in ECs granted to TPPS even if they are located within 1000km. Chairman, CIL informed that coal from Talcher Coalfields,
Orissa has an ash content of 45% or more and a plan to establish about 20 washeries
in the country for 100MT capacity is on the anvil.
(xix) Chairman, EAC (T&C)
also mentioned about the problems of fire and subsidence in Raniganj and Jharia coal fields and stated
that the good quality coal is being destroyed by
the uncontrolled fires raging in the coalfields.
The Chairman, EAC desired that a multi-disciplinary Task Force with expertise in areas such as Mining Engineering, Ecological
Restoration, Sociology, Fire Control,
Mines Safety should be formulated for effectively addressing the matter.
(xx) EAC requested Chairman,
CIL for regular environmental awareness drives at the level of the Area Manager and at the mine level.
The EAC (T&C) expressed its appreciation to Chairman, Coal India
Ltd. for sparing his valuable time for the meeting. Chairman, CIL assured that
the issues as discussed above would be looked into. The special meeting on
Agenda Item 2 ended with a vote of thanks to Chairman, CIL.
3. Expansion of Coal
Beneficiation Plant (2 MTPA to 4 MTPA) of M/s Global Coal & Mining Pvt.
Ltd., in village Tentulei, South Balanad, Tehsil Talcher, dist. Angul, Orissa (Further internal consideration of EC based on TOR granted on
31.12.2008)
The Director (T&C) informed the committee
that the proposal is for expansion of the coal washery from 2 MTPA to 4 MTPA
was earlier considered EAC (T&C)
meeting held on 20th -21st June 2011 and again EAC
(T&C) Meeting held on 21st-22nd February 2012,
wherein the Committee had desired that the quantum of raw coal, clean coal and
coal rejects be furnished in MTPA along with TPD for record of the
Ministry. The Committee was of the view
that the AAQ levels were low despite being located in a CPA and desired that
the details should be got checked from Dr.Shiv Attri, Expert, EAC. The
Committee had desired that no pay loaders should be deployed for wagon loading.
Dr Shiv Attri member, EAC informed vide
e-mail dated 08.05.2012 that the AAQ
quality data provided by M/s Global Coal & Mining pertain to the period 1st
September to 5th December 2011 instead of October 2011 to December
2011. The Committee desired that the PP
should furnish AAQ for the one-season only for the period October-December
2011. It was informed that the other details sought by the EAC (T&C) are still
awaited.
The Committee decided to further consider the
matter upon receipt of the aforesaid details.
4. Chhinda OCP Expn. (0.18 MTPA to 0.65 MTPA
in an ML area of 106.68 ha) of M/s Western Coalfields Ltd., located
in dist. Chindwara, M.P. (Further consideration of EC based on TOR granted on 15.07.2011)
The proposal is for expansion in production from 0.18 MTPA
to 0.65 MTPA with in the existing mine lease area of 106.68 ha. The proposal
was earlier considered in EAC (T&C) meeting held on 19 March 2012, wherein
the Committee had sought details of P.H. along with details of activities
undertaken under CSR since the grant of earlier EC and a CSR Plan for the
activities proposed for the balance life of the mine. The Committee desired
that the land should be restored to agricultural use after backfilling. The response
thereto was considered.
The proponent presented details of Public Hearing
held on 4th February 2012. It was informed that cracks have occurred
in the houses of nearby villages although blasting is being carried out with the
permission of Director General of Mines Safety. It was clarified that cracks
have been noticed in kutccha houses whereas in the same locality, no cracks
have been noted in pucca houses. It was informed that the transportation of
coal is by road. Arrangement for Water sprinkling on haul road and other
non-metalled road have been made. In regard to changing to mechanically covered
trucks, it was informed that the matter has been taken up with Automotive Research Association of India,
Pune; who are designing mechanically covered trucks for transportation of coal.
It was informed that an amount of Rs 11.85 lakhs has been spent on CSR
activities till date and Rs 64.61 Lakh is earmarked for the balance life of the
project or @Rs 5 /T of coal, whichever is higher. Proponent informed that the
technical reclamation and other suitable treatment of degraded land would be
done during Mine closure and land would be made suitable to be used for
agricultural purpose. It was informed that water for drinking is being supplied
to villagers. It was informed that Chhinda OCP is located at a distance of
about 50km from the Pench-Satpura Tiger Corridor Balance life of the mine is 7
years.
The Committee desired that project specific
mtigative measures should be presented in future before the Committee. The Committee
suggested that mitigative measures for reducing fugitive dust emissions should
be taken up as WCL colony is at the distance of 100m and Chhinda village is
300m away from Chhinda OCP mine site. The Committee noted that relocation of
Chhinda village is not feasible. The Committee desired that a 200m wide green
belt should be preferably developed depending on the availability of land in
non-mineralised area as large number of structures, road, and settlement are existing
between the mine and Chhinda village. The Committee desired that a plan for repairing/plugging
the cracks found in houses should be drawn up and implemented. The Committee
also desired that that a barrier consisting of 3-tier green belt and in
particular, thickets of bamboo plantations should be developed between the mine
and habitations. The Committee desired that in case the villagers are not in
favour of planting bamboo near their agriculture fields, other native species
could be planted. The Committee observed that the transportation of coal from the
mine face to surface is by 10-T trucks, should be covered. The Committee
desired that all the trucks used for coal transportation outside the mine
should be mechanically covered. The Committee desired that the recommendation
made in the MOEF Report for mines in the Pench-Kanhan Coalfields should be
implemented.
The Committee recommended the project for environmental
clearance.
The meeting ended with a vote of thanks to the Chair.
* * *
Annexure-1
PARTICIPANTS
IN 49th EXPERT APPRAISAL COMMITTEE (THERMAL & COAL MINING) IN
THE MEETING HELD ON 14th-15th MAY 2012 ON COAL SECTOR
PROJECTS
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1. Shri V.P. Raja … … … … Chairman
2. Prof. C.R. Babu … … … … Vice-Chairman
3. Shri T.K. Dhar … … …… … Member
4. Shri J.L. Mehta … … … … Member
5. Dr.G.S.Roonwal … … …. … Member
6. Dr. Shiv Attri (1st day) … … … … Member
7. Dr. T. Chandini … … … … Scientist F MOEF
8. Dr.Rubab Jaffer … …. … …. Scientist B
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Dr.R.K.Garg, Advisor (Env. & Forests), M/s Coal India
Ltd. was a special Invitee for the meeting and attended on the first day.
Dr. P.L. Ahujarai, Director, MOEF and Member-Secretary,
Thermal Power Sector and Shri W.Bharat Singh, Deputy Director, Thermal Power
Sector attended the meeting w.r.t Agenda Item No.2.
Annexure-2
PARTICIPANTS
IN 49th EXPERT APPRAISAL COMMITTEE (THERMAL & COAL MINING) IN
THE MEETING HELD ON 14th-15th MAY 2012 ON COAL SECTOR
PROJECTS
2. M/s
Coal India Ltd.
1. Shri S, Narsing Rao
Chairman,
Coal India Ltd.
2. Dr.R.K.Garg,
Advisor
(Env. & Forests),
M/s
Coal India Ltd.
3. Shri D. Srivastava
Chief
Manager, CIL
4. M/s
Western Coalfields Ltd.
1. Shri K
Chakraborty, WCL, GM (Mining)
2. Shri A C Ray, WCL, GM (Env.)
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