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• Warning that delayed forest clearance for captive mines could adversely impact development and financing of a large number of power projects, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said India risks missing the 1,00,000-MW capacity addition target for the 12th Plan.In his assessment report submitted to Prime Minister Manmohan Singh, he said many thermal plants currently under implementation, including the ambitious ultra mega power projects, were dependent on allotted captive coal mines, which have yet to get forest clearance. “This does not affect power production immediately but it will do so a few years down the line.” It would also have an immediate effect on investor sentiment in the power generation sector and on financing for power generation.“Unless the problem is resolved quickly, the 12th Plan target of 1,00,000 MW will not be attainable,” says the report, a copy of which is with The Hindu.The assessment has been done by Mr. Ahluwalia on being asked by the Prime Minister to identify urgent issues in the power sector which need immediate action. Dr. Ahluwalia has listed eight issues which require action by different Ministries.
• He said the matter was currently under the consideration of the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee, and decisions needed to be expedited. “The Ministry of Environment and Forests [MoEF] needs to be persuaded to take a more reasonable position to avoid disruption in power supply from plants that are in process. Even if we want to be tough in future — and we should be — we should recognise that we face a transition problem. There is a good case for clearing a number of coal mines now with suitable compensatory steps for enhanced afforestation to offset the damage done. This will ensure that power plants currently being constructed are not obstructed, while a better provision can be made for plants in future,” says the assessment note.
• Interestingly, in a related report to the Prime Minister, Planning Commission member (Energy) B.K. Chaturvedi has recommended doing away with the contentious “Go-No-Go” concept. (The Go-No-Go system limits mining for coal, with activity in areas of dense forest banned entirely.) This has been the bone of contention between the MoEF and the Ministries of Coal and Power, the latter two seeking removal of this definition. The report has also called for simultaneous processing for environment and forest clearance, doing a proper scrutiny of applications to make sure that all papers have been submitted and setting up a nodal agency at the State level with adequate staff to ensure forest clearance.The Chaturvedi Committee has said captive plants could approach the MoEF for consideration of cases on this approach.

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