Lok Sabha Question No. 3087 (UNSTARRED), answered on 2025-03-19
Subject: Environmental Impact of Coal Mining
Ministry: COAL
Asked by: Shri Azad Kirti Jha

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 3087 TO BE ANSWERED ON 19.03.2025

## Environmental Impact of Coal Mining

## 3087. Shri Azad Kirti Jha:

Will the Minister of Coal be pleased to state:

- (a) whether the Government has assessed the environmental and infrastructural burden on coalrich  States  such  as Jharkhand, Chhattisgarh and Odisha due to large-scale coal mining and thermal power generation;
- (b)  if  so,  the  details  thereof  and  the  remedial  measures  undertaken  by  the  Government  to mitigate the adverse impact;
- (c)  whether  the  Government  proposes  to  introduce  a  cess  or  levy  on  coal  extraction  and transportation to compensate coal-bearing States for environmental degradation and loss of natural resources;
- (d)  whether the Government has considered a special financial assistance framework for coalrich States through revenue-sharing or dedicated funds under the Finance Commission; and
- (e)  if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

- (a)  & (b): Coal  mining  works  are  a  site  specific  activity.  The  environmental  impacts  are managed  and  kept  within  the  prescribed  standards  by  planning  and  implementation  of sustainable  mining  and  environmental  control  measures  as  per  approved  Environment Management Plan.

A detailed Environment Impact Assessment (EIA) is carried out for each project considering pre and post mining conditions for preparing Environment Management Plans (EMPs). On the basis of the same, Environment Clearance (EC) is granted. While granting EC, conditions/ mitigation measures are stipulated for implementing the EMPs, which have to be complied with by the project proponents. On obtaining EC, the project proponent also secures Consent to Establish (CTE) - one time and Consent to Operate (CTO) - periodic, under the provisions of Water and Air Acts from the concerned State Pollution Control Boards (SPCB). During the course of implementation of the project, the compliance of the conditions laid in the EC, CTO etc. is monitored regularly by the regulators like MoEF&CC, SPCB etc.

To promote environmental sustainability in Coal mines in the country various sustainable & environmental friendly initiatives have been taken such as plantation/bio-reclamation, mine water utilization for community use and development of Eco-parks and adoption of energy efficiency measures.

Additionally, for captive/commercial coal blocks, Clause 11.5 of Coal Block Development and Production  Agreement  for  commercial  mining  executed  between  successful  bidder  and Nominated Authority mandates that the Successful Bidder shall implement mechanized coal extraction,  transport  and  evacuation  in  the  Coal  Mine,  in  line  with  modern  and  prevalent technologies. Further, the Successful Bidder shall strive to minimise the carbon footprints from operations at the Coal Mine, undertake steps to reduce environmental pollution and promote sustainability, in accordance with Good Industry Practice.

(c) to (e): Presently, there is no proposal to introduce a cess or levy on coal extraction and transportation to compensate coal-bearing States for environmental degradation and loss of natural resources. However, the State Governments of the coal producing states are entitled to receive  14%  of  Royalty  on  sale  price  of  coal  and  DMF  @  30%  of  royalty,  from  the  coal produced by the coal companies and also the private sector. Also, a contribution of @2% of royalty amount is made to National Mineral Exploration Trust (NMET), which is utilized for further exploration activities. Goods and Services Tax (GST) compensation Cess at the rate of Rs 400 per tonne is levied on coal under the Goods and Services Tax (Compensation to States) Act, 2017. In case of Captive/commercial mines, State Governments are also entitled to receive the revenue share offered by the auction holder in transparent bidding process. Additionally, Coal companies are contributing for the development of the coal mining areas under Corporate Social Responsibility (CSR).

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