29 MARCH 2010

1. Captive Blocks : Major Bottlenecks – Land, Environment / Forest Clearances 4th Coal Summit 2012 BP Singh Director (Projects), NTPC Ltd. 19.11.2012 29 MARCH 2010

2. PRESENTATION OUTLINE Power & Coal Sector Scenario Mine Development – The Key Processes Major Issues / Bottlenecks in Mine Development : Land Acquisition, Forest & Environment Clearances Strategies For Dealing with Bottlenecks

3. 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 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. Dependency on Coal will continue as the primary & most reliable source for power generation in India. # As per Integrated Energy Policy *Figures as on 31.10.2012 (Source – CEA Report)

4. Capacity Addition & Coal Requirement At the end of 12th plan, coal-based installed capacity of 165954 MW envisaged with coal requirement of 842 million tonnes.

5. Coal Demand-Supply Scenario in the Power Sector (Fig in Million Tonnes) More emphasis required on domestic coal production – Thrust on Captive Mines Source: CEA / MOP, GOI

6. Raw Coal Production in India Very nominal increase in production since last 3 years (Almost Stagnant) Source: CIL/ MOC, GOI

7. Govt. of India allocated coal blocks for Captive Mining since 1993 Captive Coal Block Allocation ‘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. Source: MOC

8. Mine Development – Key Processes • Detailed exploration and preparation of GR • Mining Plan preparation and approval • Land Acquisition • Obtaining of Statutory Clearances • Infrastructure Development • OB Removal & Coal Production

9. Stages in Development of Coal Mine STAGE - I STAGE - II STAGE - III • 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 • 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 • CREATION OF • INFRASTRUCTURE • Rail Link • Coal Handling Plant • Approach Roads • MINE DEVELOPMENT • Removal of OB • Coal Production

10. Exploration in India With Regional, Promotional and Detailed Exploration by GSI, CMPDI, SCCL etc., the estimation of coal resources of India reached to 285 Bt. Estimates of coal resources during last 6 years : in Million Tonnes Govt of India may put more thrust on enhancement of rate of exploration. Source: MOC, GOI

11. Detailed Exploration 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.

12. 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

13. Forest Clearance – Long Process

14. Forest Clearance – Cumbersome Process Estimation of Land Requirement Application to Nodal Officer/PCCF/DFO for Forest Diversion Survey of forest area, Enumeration of trees and demarcation of Forest land NOC from Village Advisory Committee / Gram Samittee NOC on jungle-jhari land / Revenue forest by State Govt. NOC under FRA-2006 DGPS survey & its authentication by State Bodies like ORSAC (in Odisha) Processing of Forest proposal : DFO - CF - CCF/RCCF - PCCF - Secy (Forest) State Govt - MoEF, New Delhi Site Inspection by Regional office of MOEF – Submission of Report to MOEF, New Delhi Presentation to Forest Advisory Committee of MOEF by AIG (Forest) Approval of FAC recommendation by Hon’ble Minister of Env. & Forests Stage-I forest clearance by MoEF, Delhi Demand note from DFO for NPV of trees & Compensatory Afforestation - Payment by block allocatee, Identification of land for compensatory afforestation Submission of compliance report of Stage-I clearance to DFO - CF - CCF/RCCF - PCCF - Secy (Forest) State Govt - MoEF, New Delhi Processing of Stage-II proposal at MOEF – approval by IG / DG, Forests Stage-II clearance from MoEF Order by DFO/RCCF to start demarcation of forest land, Safety zone and CA areas Approval of State Forest Deptt. to start tree felling and transportation of tree logs MOC schedule stipulates 6 months to complete all these activities – Unrealistic in present scenario

15. Forest Clearance - Factors contributing to Delay

16. NTPC’s experience in forest clearance * NTPC lost 13 months for Dulanga coal block due to ‘No-Go’ area issue.

17. 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.

18. Environment Clearance - Flow Chart Approval Environment Clearance Clearance by Expert Committee Site Clearance / TOR Geological Report Mining plan Submission to SPCB Preparation of EIA/EMP Engagement of Agency Stage I Forest Clearance Public Hearing Submission of Comprehensive EIA/EMP along with Schedule II Performa to MOEF NOC from SPCB MOC schedule stipulates 6 months to complete all these activities – Unrealistic in present scenario

19. NTPC’s experience in environment clearance * In-principle clearance accorded – final clearance after Stage-I forest clearance

20. 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).

21. Land Acquisition – Factors contributing to Delay

22. Land Acquisition – Suggested Measures Mining Industry can grow only with active support & involvement of State Govt.

23. Infrastructure Development • 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.

24. Captive Mining in India to excel To sum up ……..

25. 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.

26. Thank You