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India moves to protect coal reserves

4th May'10

Mining companies in India will be blocked from tapping up to a third of the country's biggest coal reserves after government declared them "no-go" areas for mining due to their environmental sensitivity.

 

Jairam Ramesh, the environment minister, told that the decision to ban coal mining in dense forest areas is part of an attempt to better regulate India's mining industry, which has operated with little regard for its environmental and social consequences.

 

The move by the Ministry of the Environment and Forests applies to up to 35 per cent of the country's coal reserves.

 

Mr Ramesh admitted that some companies had received "in principle" approval several years ago to mine in areas now declared off-limits.

 

India is the world's third largest producer of coal and lignite, but needs double its production over the next decade to meet the rising demand for electricity. Mr Ramesh acknowledged his new zoning plan would mean Asia's third-largest economy would have to import more coal, but insisted that the move is crucial to save India's natural habitats.

 

"It's all very well to say environment and development have to go hand in hand, but what are the practical implications of that?" he said. "The practical implications are that there will be instances were you say yes; there will be instances where you say 'yes, but' and there will be instances where you say 'no'.

 

"Mr Ramesh said he favoured applying similar criteria to other mineral resources, and he has also imposed a blanket ban on mining in the coastal state of Goa, a popular tourist destination.

 

Much of India's mineral wealth lies in densely-forested, remote areas inhabited by poor tribal people.