IRL 0.00% 0.0¢ india resources limited

prism and biharinath contracts, page-10

  1. 4,695 Posts.
    lightbulb Created with Sketch. 295
    31 Dec, 2010, 05.46AM IST,ET Bureau
    Scrap coal nationalisation

    It is unfortunate that the environment and coal ministries are at loggerheads over the so-called no-go areas for mining. The coal ministry has reportedly sought the Union Cabinet's nod for 203 coal blocks that are being denied mining permission, because they fall in the no-go areas.

    The way to resolve the issue is to keep the big picture in mind, and to proceed with pragmatism, taking note of the ground realities. Coal-bearing areas amount to only about 0.54% of the total land mass. Further, forest cover on coal-rich land adds up to just 0.16% of India .s landmass.

    The minuscule forest cover involved need not mean that the environmental consequences can be dismissed out of hand. The coal-rich forest areas may be ecologically fragile regions or involve core areas of biodiversity.

    But the point to note is that much of our coal, which provides for over half our commercial energy needs and accounts for 70% of power generation, is sourced from a regionally concentrated zone in south-central India. Estimates also suggest that the identified 203 blocks can double the total installed thermal power capacity. But we do need to differentiate between mere possibility and practicality.

    It may well be that many of the blocks are simply too remote and inaccessible to provide coal-linkage at reasonable cost. In many cases, it would be far more cost-effective to import, say, Australian coal and reap the benefits of high mining yields abroad (and access better coal grades as well).

    Also, it is possible that some of the coal-bearing forested areas are amenable to environmentally-sustainable mining practices. This would require compensatory afforestation so that the overall forest cover of the coal-belt is not reduced.

    But more important is the need for proactive policy for inclusive development in the mineral and coal rich areas, which paradoxically also have the highest poverty ratios and are industrially, economically and socially backward.

    Additionally, instead of encouraging sprinkling of capacity, we need to step up productivity in domestic mining with reforms and do away with a panoply of existing rigidities. The continuing policy of coal nationalisation is a glaring anachronism indeed.
 
watchlist Created with Sketch. Add IRL (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.