Consideration of Projects of Thermal Power, Steel Sector, etc. for Environmental Clearance with sourcing of Coal from dedicated Coal Blocks/Coal India Ltd

Government of India 

Ministry of Environment & Forests 

Paryavaran Bhavan, 

CGO Complex,  Lodi Road, 

New Delhi-110003 

Dated:  l g t h  April,  2012 


Subject :  Consideration of Projects of Thermal Power, Steel Sector,  etc. 

for Environmental  Clearance  with  sourcing  of  Coal  from 

dedicated Coal  Blocks / Coal India Ltd. – Regarding 

This is in continuation to this Ministry’s earlier circular of even number dated 

1% November,  2010 on the above mentioned subject regarding proposals relating to 

thermal power and other projects, which are largely dependent on availability of coal 

as a raw material. I t  was  stipulated that such projects shall be considered only a t e r  

firm  coal  linkage  is  available.  Further,  it  was  also  required  that  the  status  of 

environment and forestry  clearance  of the coal  source,  i.e.  the  linked coal mine / 

coal block will be intimated for consideration of such proposals. I n  case of projects 

based on imported coal,  a copy of the firm MOU signed between the coal supplier 

and the project proponent would be required. 

2.  The issue of firm coal linkage as a pre-requisite for  consideration of projects 

for environment clearance has been further considered in order to bring in greater 

clarity and to elaborate the procedure for submission and processing of proposals for 

environment clearance. 

3.  It is essential to have detailed information regarding quality of coal to assess 

the environmental  impacts  of  a  thermal  power  project. The various  important 

parameters of coal quality,  inter alia,  include (i) calorific  value;  (ii) sulphur content 

and (iii) ash content. The calorific value of coal would determine the quantity of coal 

requirement per  unit of  power generation,  ash  content would determine the  land 

requirement for the ash pond as also the water consumption for its disposal in slurry 

mode and sulphur content would impact on the SO? emissions which,  in turn, would 

affect the air quality. 

4.  Accordingly,  quality  of  coal  to  be  used  in  the project  is  taken into 

consideration while preparing the environment impact assessment (EIA) report and 

carrying out the environmental appraisal. 

5.  I t  is,  therefore,  essential  to  provide firm  coal  linkage for  consideration of 

proposals for  environment clearance of thermal  power projects and other  projects 

which are largely dependent on coal as  a raw material. I t  is clarified that the coal 

linkage could either be in the form of a linkage through a specific  mine or a basket 

of  mines  or  through  dedicated  coal  block,  in  the  form  of  linkage  accorded  by 

Standing Linkage Committee of the Ministry of Coal or a fuel supply agreement. The linkage/FSA  must provide the details of the coal quality parameters,  specifically (i) 

calorific value;  (ii) sulphur content and (iii) ash content and such other parameters 

as may be prescribed by MoEF from time to time.  Further,  it would be necessary to 

indicate  the  location  of mine  as  this  would  determine  the  necessity  of  using 

beneficiated washed coal. 

6.  In  the  eventuality  of  change  in  coal parameters  with  respect  to  the 

parameters  based  on which  EIA  was  prepared,  it would be  necessary  that  the 

project is referred back to MoEF to revisit the environment clearance granted earlier 

so as to assess the adequacy of the conditions already stipulated and to incorporate 

any  additional  condition  as  may  be  necessary  in  the  interest  of  environment 

protection including provision of FGD for control of SOx emissions. 

7.  As  regards the issue relating to the status of EC/FC for the linked coal mine,  it 

is clarified that the case for environment clearance of Thermal Power Projects would 

be processed based on the status furnished by the proponent in line with the parallel 

processing being  adopted for granting environment clearances  of  projects  where 

forestry  clearance  is  also  required,  i.e,  having  convergence  at the  last  step. 

However,  EC  would be issued only after stage-I forestry clearance for  linked mine 

has been issued. 

8.  The above procedure comes into force with immediate effect. 

This issues with the approval of the Competent Authority. 

(Dr. S.K-r 


All officers of IA Division 

CODV to: 

(i)  PS to MEF 

(ii)  PPS to Secretary(E&F) 

(iii)  PPS to SS(JMM) 

(iv)  PPS to JS(RG) 

(v)  All SEIAAs/SEACs 

(vi)  Website of MoEF 

  • : समर्पित कोल ब्लॉक / कोल इंडिया लिमिटेड से कोयले की सोर्सिंग के साथ पर्यावरणीय मंजूरी के लिए थर्मल पावर, स्टील सेक्टर आदि की परियोजनाओं पर विचार।
  • : 30/04/2012