Energy projects: Govt plans Adarsh scheme to put mining on track
Financial Express
August 13th 2019
According to official documents reviewed by FE, the
initiative comes under the ‘Agrim Districts for Accessing Resources Sustainable
and Harmoniously’ (Adarsh) scheme, which is being planned by the government to
meet the rising energy demands of the country, via domestic resources.
The
government is planning to identify 25-30 mineral-rich districts in the country
to accelerate mining programmes by expediting the approval mechanism for energy
projects in these regions. According to official documents reviewed by FE, the
initiative comes under the ‘Agrim Districts for Accessing Resources Sustainable
and Harmoniously’ (Adarsh) scheme, which is being planned by the government to
meet the rising energy demands of the country, via domestic resources.
The plan
has been designed by the ‘Five Year Vision Resources Group 2024’, which was
tasked to layout a framework to increase energy supply and cut imports.
According to sources, the ministries of power, renewable energy, petroleum and
natural gas, environment and forest, coal, mines and external affairs
constitute the group. The group was formulated after secretaries from the
aforementioned ministries held six meetings between June 21 and August 6.
According
to the Adarsh plan, energy projects of both public and private companies in the
identified mineral-rich districts would undergo an ‘accelerated consent and
clearances framework’, subject to the approval of an ‘integrated plan’ — which
would incorporate environment clearances, compensatory afforestation, resource
development, smart townships, connectivity and market places. The vision document
plans to address these challenges by streamlining dispute resolution
mechanisms, introducing more competition in the sectors and bringing in
associated regulatory reforms.
Delays in
receiving forest clearances, mining-safety permissions, land acquisition and
ongoing litigation have been attributed as the key reasons behind slow growth
in the production of domestic energy resources such as coal. The Adarsh scheme
aims to fast track production by overcoming such impediments.
According
to the document, the coal ministry has suggested the coal allocation
methodology to gradually shift from captive mining to commercial sale of coal,
where there will not be any restriction on end use. It also plans to allocate
more than 200 blocks, including the unexplored ones, by 2024. It also aims to
increase the share of coal supply to non-regulated sectors (such as steel,
cement and fertiliser) to 35% from the current level of 25%. The regulated
power sector consumes most of the coal.
According
to the vision document, the government plans to have 260 giga-watt (GW) of
installed renewable energy capacity and produce 1,120 MT of coal annually by
2024. The country produced 739.4 MT of coal in FY19 and the current installed
renewable capacity, including hydro, is about 125 GW. Per-capita electricity
consumption is seen to grow to 1,630 units from the current level of under
1,200 units.
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