By Our Correspondent
NEW DELHI /BHUBANESWAR: Due to deforestation in various hills, 80 per cent of streams have gone dry in Odisha’s mineral rich Keonjhar-Sundargarh-Mayurbhanj and Jajpur . The water flow in Deogarha’s Padhanpata , Sundargarh’s Khandadhar and Keonjhar’s Sanaghagara and Badaghagara waterfalls has decreased by 50 per cent in last 12 years. Locals in Coal rich areas like Sundargarh, Jharsuguda, Angul, Sambalpur and Dhenkanal are apprehending ecology hardship.
The Naveen Patnaik led Government in Odisha had earlier admitted that the water-flow in the Padhanpata waterfall at Deogarh had decreased drastically due to destruction of forests. Locals in Coal and mineral rich areas however expressed concerns over the dwindling of the wild animals and the increasing man-animal conflict in human habitations due to water and fodder scarcity in jungles and hills in view of large scale mining.
Odisha , which houses 79,295 Million ton of coal deposits, is the second most Coal bearing State in the Country while India is the 5th biggest coal bearing Nation in the World. In past, Odisha Government only auctioned 1 coal block-Jamkhani, which had won by Anil Agarwal’s Vedanta Limited. The Coal Ministry is auctioning as many 40-50 blocks.
Odisha has hiked it coal production by 23 % in last 5 years, while National Coal Production increased by 24 %. Out of the Coal Blocks, 21 have been reserved for auction to all Non Regulated Sectors, such as Steel, Cement and 6 Coking Coal Mines for Iron Ore and Steel. India’s coal production was 730.54 Million ton during 2018-19 with a growth of 7.9 %
Saving the environment should not come at the cost of economic development, the Supreme Court said on Friday, adding that a balance should be struck between the two.The observation by the top court came on a plea filed by a lawyer, Abir Phukan, seeking a ban on mining in the Saleki forest reserve, situated close to the Dehing Patkai Wildlife Sanctuary in Assam.
The area falls in the elephant corridor and in this region, state-owned Coal Indian Limited (CIL) has obtained approval for mining from the standing committee of the National Board for Wildlife (NBWL) in April this year.The Centre, represented by additional solicitor general (ASG) Vikramjeet Banerjee, opposed the plea ,claiming that the environmental impact had already been assessed by the NBWL.
In a significant development, which might have long lasting impact on Odisha and some other parts , the Centre, for the first time in history, is launching commercial coal auctions in the country on June 18.The Centre’s move assumes significance as people in large numbers are continuously opposing the move to extract coal from different parts of the Odisha, which has been posing serious threat to the biodiversity over the years.This decision comes a month after the Union Cabinet approved the new revenue-sharing model which puts an end to the monopoly of state-run Coal India.
Prime Minister Narendra Modi will on June 18 launch the auction of coal mines for commercial mining at an event to be held in New Delhi via video conferencing.The launch of auction will be with the theme “Unleashing coal: New hopes for Aatmanirbhar Bharat”, the coal ministry said in a statement.
Prime Minister Narendra Modi will on June 18 launch the auction of coal mines for commercial mining. “We are launching first-ever commercial coal auctions in country on 18th June. Event will be graced by PM @NarendraModi Ji. It is his vision & guidance to make #AtmaNirbharBharat in coal. I am proud that we are well on our way to achieve it,” coal minister Prahlad Joshi said in a tweet.
As India has recently embraced the Aatma Nirbhar Bharat Abhiyan, the coal and mining sector has started gearing up to make the country self-reliant in coal mining through structural reforms, the ministry said.The commercial coal mining auction is completely different from the earlier regime of restricted sectors, use and price. Now there are no such restrictions at all.
The proposed auction has business-friendly terms and conditions, including reduced upfront amount, adjustment of upfront amount against royalty and liberal efficiency parameters to encourage flexibility to operationalise the coal mines.Besides, 100 per cent FDI through automatic route has been allowed and there are reasonable financial terms and revenue sharing model based on National Coal Index.Prime Minister Narendra Modi will on June 18 launch the auction of coal mines for commercial mining
The successful bidders will also have flexibility in coal production unlike the past and have provision for incentives for early production and coal gasification. Around 50 coal blocks are likely to be auctioned for commercial coal mining, a source had said earlier. The mines to be put up for auction would be in three categories — small, medium and large. Some of the mines would come into production within a year of being auctioned, the source had added.
The government had last month approved a methodology for commercial mining of coal on revenue sharing basis. The decision was taken during a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister.
Finance minister Nirmala Sitharaman, while announcing the stimulus package for the coronavirus-hit economy, had said coal mines would be auctioned to the private sector for commercial mining to end reliance on imports and improve local production. The methodology approved by CCEA provides that bid parameter will be revenue share, the government had said, adding that bidders would be required to bid for a percentage share of revenue payable to the government.
The commercial coal mining auctions are completely different from earlier regime of restricted sectors, use and price. Now there are no such restrictions at all.The proposed auctions have terms and conditions which are very liberal allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against royalty, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process, 100% FDI through automatic route allowed and reasonable financial terms and revenue sharing model based on National Coal Index.
Major producers of metals, power and cement are expected to participate in the auction. “Initial auctions for the larger mines may draw the larger players who will bid to de-risk supply and cost to their downstream business. Others will bid to use the mines to make profits through efficient and timely supply of coal in the open markets and still others who will seek to achieve both.
The broader acceptance of the reforms will be tested by the type and the number of international, private and public sector participants in the first few rounds. Unlike in the past, it is expected that the auctions will be see a broader mix of bidders and hence a higher competition between the interested parties for acquiring mines.
Commercial coal mining is expected to boost domestic production and lead to reduced coal imports, resulting in estimated savings of Rs 1.7 lakh crore or more. Private investments in new mines will also create thousands of jobs and big earnings for coal-bearing states.
Private players like Rungta Mines Limited, Jindal Steel and Power Ltd, JSW Steel-Energy, Essel Mining and Industries Ltd, Hindalco, Tatas, Sesa Goa, Vedanta Industries Ltd, Adani Group and global players like Rio Tinto, BHP Billiton, PesBody, Glencore and Vale are among those eyeing on Odisha’s Coal block, sources said.
