A huge scam is in the making in the Indian power sector

THIS IS what the Centre for Science and Environment (CSE) has found in a study conducted by them. Chandra Bhushan, CSE’s deputy director general, claimed that unprecedented scale of clearances have been given by the Ministry of Environment (MoE) to industrial projects in the last five years. He adds that 267 thermal power plants, 200 coal-based thermal power plants, 181 coal mines, have been accorded clearance. This enormous splurge has led to a doubling of capacity in almost all sectors. However, almost all of this capacity remains unutilized.


The 11th Five Year Plan projects a revised target of 50,000 MW of additional thermal power capacity whereas the 12th plan asks for 100,000 MW. In the past five years, till August 2011, MoE has granted environmental clearance to an astounding 210,000 MW of thermal power capacity. In simple words this means that clearances for 60,000 MW more than what has been proposed till 2017 have already been given.
Coal India Limited (CIL) produces over 90 per cent of India’s coal with a control over 200,000 hectare acre of mine lease, including 55,000 hectare acre of forest area. The estimated coal reserves with CIL are 64 billion tones, and the company produces 500 million tons per annum.

CSE study claims that coal mining clearances just another way to facilitate access to captive coal mining by private companies. Today, many private companies have got coal mines, but have not started production. While the coal ministry has warned some companies to immediately develop their mines or face de-allocation, the minister of coal is on record demanding that environmental clearances be removed so that coal production is not jeopardised.
Chandra Bhushan wonders why the ministry is giving so many clearances. Why projects that are already are cleared not being implemented first before more clearances can be given? Is this some kind of a new scam to take over the land and water of the people?”
Many projects have been granted clearances in already critically polluted areas such as Singrauli, Korba, Raigadh and Hazaribagh. Says Bhushan: “Currently, all projects are cleared individually, without once assessing the cumulative impact on the region or district. It is clear that once operational, these projects will make life hell for the people and the environment.”

In the case of coal-based thermal power projects, of the top 10 districts where environmental clearance has been granted to these projects, six were declared as already critically polluted.