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● Media reports suggest the EGoM responsible to resolve the ‘go,
no-go’ zone issue has decided to fast-track forest clearances for
eight captive coal blocks during their third meeting of 9 June 2011.
The EGoM indicated that since these captive coal blocks have
already incurred significant investments, they should be provided
forest clearances on a fast-track basis.
● All eight captive coal blocks are part of the 203 coal blocks that
were put under the ‘no-go zone’ by the Environment Ministry,
resulting in the denial of forest clearances to these mining
projects. In February 2011, the government had constituted an
EGoM to resolve the ‘go/ no-go zone’ issue on these projects.
● The final decision is likely to be taken during the fourth EGoM
meeting scheduled to be held on 2 July 2011. Since both the
EGoM and the PMO-appointed committee have expressed similar
favourable views, we believe visibility on clearance of these eight
coal blocks seems high.
● If approved, Adani Power, JPVL, KSK and Reliance Power would
be key beneficiaries among our utilities coverage. Essar Power
and Hindalco would be other beneficiaries.
EGoM likely to fast-track forest clearance for 8 coal blocks
As per a Business Standard news article dated 10 June 2011, the
Empowered Group of Ministers (EGoM), responsible to resolve the ‘go,
no-go’ zone issue has decided to fast-track forest clearances for eight
captive coal blocks during their third meeting of 9 June 2011. To recap,
even the committee appointed by the Prime Minister’s Office had
recommended that these blocks be put on the fast track for forest
clearances, considering these projects have already made significant
investments in the development of these coal blocks (and/ or
associated end-use power projects).
Background of the case
As shown in Figure 1 below, all these eight captive coal blocks were
allocated during CY06-07. At the time, there was no concept of a
‘go/no-go zone’; which was introduced subsequently by the
Environment Ministry. Overall, a total of 203 coal blocks are currently
categorised under the ‘no-go zone’ implying these mines are under
dense forest area; resulting in the Environment & Forest Ministry
declining forest clearances for mining projects – thereby impacting
their coal mining plans. In order to resolve the ‘go/ no-go zone’ issue,
in February 2011the Government constituted an EGoM (a group of 12
ministers from concerned ministries), headed by the Finance Minister
Mr Pranab Mukherjee.
Final decision likely in EGoM meet scheduled in July 2011
The first two meetings held in February and April 2011 were
inconclusive. The third EGoM meeting on this issue conducted
yesterday (June 9). While the EGoM has not made any conclusive
recommendations even in the third meeting, it indicated that projects
involving these 8 captive coal blocks where substantial investments
have already been incurred should be provided forest clearances on a
fast-track basis. The final decision on this issue is likely to be
announced in the fourth EGoM meeting scheduled for 2 July. In the
meanwhile, concerned agencies are requested to collect data relating
to the projects under review.
Visibility on clearance of eight coal blocks seems high
Considering that both the EGoM as well as the committee appointed
by the PMO have expressed similar views relating to the clearances
for eight captive coal blocks (refer Figure 1), we believe the visibility
on clearance of faster approvals for these blocks is high. If approved,
Adani Power (1.98GW Tiroda-I project), JPVL (1.32GW Nigrie project),
KSK Energy (1.8GW Mahanadi project) and Reliance Power (3.96GW
Sasan UMPP) would be the key beneficiaries among our utilities
coverage universe. Besides, the clearance of coal blocks should
benefit Adani Enterprises as an MDO for RRVUNL mines. Hindalco
and Essar Power would be the other beneficiaries.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
● Media reports suggest the EGoM responsible to resolve the ‘go,
no-go’ zone issue has decided to fast-track forest clearances for
eight captive coal blocks during their third meeting of 9 June 2011.
The EGoM indicated that since these captive coal blocks have
already incurred significant investments, they should be provided
forest clearances on a fast-track basis.
● All eight captive coal blocks are part of the 203 coal blocks that
were put under the ‘no-go zone’ by the Environment Ministry,
resulting in the denial of forest clearances to these mining
projects. In February 2011, the government had constituted an
EGoM to resolve the ‘go/ no-go zone’ issue on these projects.
● The final decision is likely to be taken during the fourth EGoM
meeting scheduled to be held on 2 July 2011. Since both the
EGoM and the PMO-appointed committee have expressed similar
favourable views, we believe visibility on clearance of these eight
coal blocks seems high.
● If approved, Adani Power, JPVL, KSK and Reliance Power would
be key beneficiaries among our utilities coverage. Essar Power
and Hindalco would be other beneficiaries.
EGoM likely to fast-track forest clearance for 8 coal blocks
As per a Business Standard news article dated 10 June 2011, the
Empowered Group of Ministers (EGoM), responsible to resolve the ‘go,
no-go’ zone issue has decided to fast-track forest clearances for eight
captive coal blocks during their third meeting of 9 June 2011. To recap,
even the committee appointed by the Prime Minister’s Office had
recommended that these blocks be put on the fast track for forest
clearances, considering these projects have already made significant
investments in the development of these coal blocks (and/ or
associated end-use power projects).
Background of the case
As shown in Figure 1 below, all these eight captive coal blocks were
allocated during CY06-07. At the time, there was no concept of a
‘go/no-go zone’; which was introduced subsequently by the
Environment Ministry. Overall, a total of 203 coal blocks are currently
categorised under the ‘no-go zone’ implying these mines are under
dense forest area; resulting in the Environment & Forest Ministry
declining forest clearances for mining projects – thereby impacting
their coal mining plans. In order to resolve the ‘go/ no-go zone’ issue,
in February 2011the Government constituted an EGoM (a group of 12
ministers from concerned ministries), headed by the Finance Minister
Mr Pranab Mukherjee.
Final decision likely in EGoM meet scheduled in July 2011
The first two meetings held in February and April 2011 were
inconclusive. The third EGoM meeting on this issue conducted
yesterday (June 9). While the EGoM has not made any conclusive
recommendations even in the third meeting, it indicated that projects
involving these 8 captive coal blocks where substantial investments
have already been incurred should be provided forest clearances on a
fast-track basis. The final decision on this issue is likely to be
announced in the fourth EGoM meeting scheduled for 2 July. In the
meanwhile, concerned agencies are requested to collect data relating
to the projects under review.
Visibility on clearance of eight coal blocks seems high
Considering that both the EGoM as well as the committee appointed
by the PMO have expressed similar views relating to the clearances
for eight captive coal blocks (refer Figure 1), we believe the visibility
on clearance of faster approvals for these blocks is high. If approved,
Adani Power (1.98GW Tiroda-I project), JPVL (1.32GW Nigrie project),
KSK Energy (1.8GW Mahanadi project) and Reliance Power (3.96GW
Sasan UMPP) would be the key beneficiaries among our utilities
coverage universe. Besides, the clearance of coal blocks should
benefit Adani Enterprises as an MDO for RRVUNL mines. Hindalco
and Essar Power would be the other beneficiaries.
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