Tara Coal Block Has Only Been Auctioned So Far; Mining Can Begin Only After Completion of All Prescribed Procedures, Including Forest & Environmental Clearances

Priority to Environmental Conservation and Local Interests Alongside the Country’s Energy Needs and the State’s Development

The Chhattisgarh Mineral Development Corporation (CMDC) Managing Director Shri Rajat Bansal has clarified that, at present, only the competitive auction of the Tara Coal Block has been completed. Before mining can commence, the Mining Plan, mining lease, environmental clearance, forest clearance and all other requisite statutory approvals will have to be obtained. Actual mining operations can begin only after completion of these processes and receipt of the prescribed approvals.

A total of nine bids were received in the competitive auction for the Tara Coal Block. Following completion of the auction process, the block has been awarded to CG Syn&Gas and Chemicals Limited.

Before mining can commence, the various stages of forest clearance will have to be completed. The environmental impacts of the project will also be assessed in accordance with the prescribed norms. No tree felling or actual mining activity can take place before the requisite statutory approvals are obtained. In other words, the auction of a coal block, grant of forest and environmental clearances, and permission to undertake actual mining are separate stages of the process.

The process relating to allocation and mining of coal blocks in the Hasdeo-Arand region has been underway for several years. The Tara Coal Block was allocated to the Chhattisgarh Mineral Development Corporation in 2011. Subsequently, as a consequence of the Supreme Court’s order, its earlier allocation was cancelled along with those of other coal blocks.

During the same period, other coal blocks in the Hasdeo-Arand region were linked to the requirements of government-owned power generation entities. Among them, the Parsa East Kete Basan (PEKB) coal block was one of the major blocks allocated to meet the power generation requirements of Rajasthan Rajya Vidyut Utpadan Nigam Limited.

The process of granting forest and environmental clearances to coal blocks in the Hasdeo-Arand region had also progressed during the tenure of the previous government at the Centre. In 2011, despite an adverse recommendation by the Forest Advisory Committee, a decision was taken at the level of the Union Ministry of Environment and Forests to grant forest clearance in relation to Tara and PEKB. PEKB received Stage-I forest clearance in July 2011 and Stage-II forest clearance in March 2012. The process relating to the project’s environmental clearance also progressed during the same period.

Under the earlier system, coal blocks were allocated to government companies or designated end-use entities. Under the present system, a transparent competitive auction mechanism is followed for commercial coal mining. The current process concerning the Tara Coal Block has been undertaken under this system. Merely emerging as the successful bidder in an auction does not automatically confer mining rights or forest and environmental clearances upon the company.

Availability of domestic coal resources is important for meeting the country’s growing energy requirements and ensuring continuity of power supply. During the tenure of the previous State Government as well, decisions were taken at various levels and correspondence was undertaken with the Central Government keeping in view the requirements of coal production and power supply in the Hasdeo region. Correspondence with the Central Government regarding allocation of coal blocks was undertaken in 2019 and 2021. In 2022, the Chhattisgarh Legislative Assembly also passed a private member’s resolution concerning coal blocks in the Hasdeo region.

The issue of utilisation of coal resources in Hasdeo-Arand is not confined to the Tara Coal Block alone. The issue concerning allocation of the Morga Coal Block also remains under consideration. The previous State Government had requested the Union Ministry of Coal to allocate the block in favour of the Chhattisgarh Mineral Development Corporation.

In its communication, the State Government had stated that the Madanpur South Block, part of the Madanpur Coal Block adjoining Morga, had already been allocated by the Union Ministry of Coal to the Andhra Pradesh Mineral Development Corporation. On this basis, a request was made for allocation of the Morga Coal Block to the Chhattisgarh Mineral Development Corporation. The communication also stated that, following allocation, the State Government would approach the Union Ministry of Environment for the necessary environmental approvals.

The Indian Council of Forestry Research and Education (ICFRE) conducted a detailed scientific study concerning future mining activities in the Hasdeo-Arand region. The study assessed biodiversity, wildlife, catchment areas and environmental sensitivity. It considered Tara and certain other coal blocks as potentially suitable for mining, subject to stringent environmental safeguards and conservation measures.

Highlighting forest conservation and afforestation as priorities of the State, the document refers to figures from the Forest Survey of India report for 2023. According to the figures cited, Chhattisgarh recorded a net increase of 683.62 square kilometres in forest area/cover between 2021 and 2023, the highest among all States in the country. During the same period, an increase of 702.75 square kilometres in the State’s forest cover was also recorded. The Forest Survey of India’s 2021 report had similarly recorded an increase of approximately 106 square kilometres in Chhattisgarh’s forest cover compared with 2019.

According to the document, every mining project will be required to comply with environmental and forest clearance requirements, scientific studies, compensatory afforestation provisions and all other prescribed environmental safeguards.
The Chhattisgarh Mineral Development Corporation has reiterated that the present position regarding the Tara Coal Block is that only the competitive auction has been completed and mining has not commenced. The successful bidder will have to obtain all requisite statutory approvals. Actual mining operations can begin only after completion of these processes.

Throughout the process, priority will be accorded to maintaining a balance between the country’s energy security, the State’s development requirements, conservation of forests and the environment, and the interests of local communities.