On 11 Nov 2020, the Ministry of Environment, Forests and
Climate Change (MoEFCC) brought
out an Office Memorandum (OM) that allows thermal power plants to change the
source of their coal without having to get their Environment Clearance (EC)
amended. It is a highly retrograde dilution of environmental safeguards, and
seems especially brought in to enable ease of marketing for the private players
who have put in winning bids for coal mines in the recently concluded
commercial coal mining auctions.
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A coal stockpile at a coal mine. Representative picture. Photo by: Author
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Coal Quality Influences Environmental Impacts
The environmental impacts of a thermal power plant (TPP)
depend significantly on the quality of coal used. Hence, when a TPP is accorded
environmental clearance (EC), safeguard measures prescribed have to consider
the characteristic parameters of the coal to be used. These parameters include
the ash content (which can influence ash re-use and disposal, particulate
matter emissions, water use), sulphur content (impacting SO2 and particulate
emissions), mercury content etc. This is the reason why environmental
regulations till now prescribed that the source of coal had to be specified
during the environment impact assessment (EIA), and in case the source of coal
was changed after the EC was granted, the project needed to seek an amendment
to the EC and its conditions (safeguards) in case it was deemed necessary.
Naturally, this involves time and effort, but is necessary
for ensuring environmental safety. But project prompters have found this
bothersome, as they do with anything that is deemed important to protect the
environment.
The OM of the MOEFCC now removes this requirement. And MoEFCC
has not been shy of stating the reason upfront.
Untenable Rationale
The OM says:
“The Ministry has been receiving
several proposals regarding change in coal sources…the linkage period granted
through short-term linkage and e-auctions vary from 3 months to 1 years, making
Project Proponents to approach the Ministry for granting amendment in EC each
time…”
The OM adds that the Ministry of Power has also issued an
advisory to TPPs using imported coal to shift to domestic coal under the Atmanirbhar
Bharat initiative. Further, the OM describes the process of getting the EC
amended in case of coal source change, and says that “The whole process would
approximately take about 2-3 months.”
Looking at all these difficulties, the OM says,
“In order to simply the procedure
for change in coal source and encourage thermal power plants to use domestic
coal, the Ministry has decided the following procedure…All thermal power plants…can
change the coal source…without seeking amendment in the EC…”
This raises some very important questions. For one, a 2-3
months’ time frame for getting the EC amended is hardly such a long time. The
plant can well make the application a few months in advance so that when time
comes to make the shift to a new coal source, the EC amendment is in hand.
After all, a new source would be under discussion / negotiation well before the
time of availability of the earlier one ends.
Second, consider the argument that the coal linkages are
given for shorter periods and hence project proponents are made to approach the
Ministry every now and then. This is a problem with the management and
regulation of the coal sector, and the solutions to that must be found in
reforms and changes in the coal sector. One cannot address a deficiency in the
coal sector by amending and doing away with environmental safeguards.
Last but not the least, the reason that this is also being done
to “encourage thermal power plants to use domestic coal” is totally
untenable. For a plant to shift from an
imported coal source to domestic is a onetime process, so the EC amendment
would be needed only once. It’s likely
that the process of just making this shift – identifying the source, the
negotiations etc. - would itself take several months. So getting the EC amended
can just be included as one more part of making this shift. It shows utter
disregard for the environment and skewed priorities of this Government that an
initiative to promote self-reliance needs to come at the cost of removing
environmental safeguards. Or maybe the atmanirbhar Bharat initiative is
deliberately being used as a cover to remove environmental safeguards.
Indeed, the entire amendment OM is justified on the basis of
the problems of the coal sector and the inconveniences caused to the project
power plants. The easy solution is to “simplify”, or remove, the environmental
regulation.
Specious Justification
The Ministry must have realised that this change would come
under criticism so has tried to provide some justification for the amendment. The
OM states that:
“The various environmental
impacts due to change in coal source viz. increased ash quantity and its
management, increased emissions, and impacts of transportation have already
been addressed and adequate mitigation measure have been stipulated by the
Ministry vide Notifications dated 7.12.2015, 28.6.2018 and 21.5.2020.”
That the impacts of change in coal source have already been
addressed by the said notifications is an utterly laughable assertion.
Virtually none of these provisions have been implemented.
Take the case of the notification dated 7.12.2015. It mandates
limits on emissions on SO2, NOx, PM and Mercury. It also puts limits on the
water consumption, mandates zero waste water discharge for all new plants, and
requires all inland plants to switch to circulating cooling. The deadline for
all this was Dec 2017.
After virtually no effort at implementation, the industry,
with the support of Ministry of Power, pushed MoEFCC into postponing the
deadline for achieving SO2 norms to 2022. Even here, only
a handful of TPPs are on track for meeting the deadline. Now, the Ministry
of Power has brought in a
new proposal that will exempt many plants from the norms, and require
meeting of the norms in 10-15 years. The mandated norms for NOx emissions were
also not implemented. In fact, the industry has successfully pushed for their dilution in
2020. Similar dilution
of the water use norms was done in 2018. There is no centralised system of
monitoring the compliance of these norms (except for SO2 limits, in the form of
Flue Gas Desulphurisation or FGD installation). Information obtained by Manthan
Adhyayan Kendra (of which this author is a member) in 2019 revealed
significant non-compliance of water use norms.
Regulations have always required (since 1999,
but especially since 2009)
for TPPs to achieve 100% utilisation of the fly ash they generate. These norms have
been consistently, blatantly and extensively violated. The Central Electricity
Authority (CEA) which brings out ash utilisation reports every six months notes
this with monotonous regularity (See page 19 of the latest available 2018-19
report). Due to this, ash has emerged as one of the most serious source of
pollution in areas around TPPs, contaminating air, water, land and soil,
impacting people’s health, agriculture and other livelihoods.
Interestingly, imported coal mostly has much less ash
content than Indian coal; which means that shifting to domestic coal will
result in much higher ash generation. Managing this will be an additional load
and to expect that TPPs which are not able to manage even existing ash
generation will take care of the additional load, requires a stretch of
imagination. Knowing this fully, the OM creates a loop hole – while it
prescribes that “additional ash pond is
not allowed due to increase in the ash content in the raw coal”, but then
immediately also says that “in case of exceptional circumstances, project
proponents may approach the Ministry for seeking permission to use an emergency
ash pond…”.
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Fly ash dumped in open fields near water source. Representative picture. Photo by: Author |
Creating Ease of Business at Cost of Environment
Looking at all the
above, it is clear that the sole aim of the OM is to remove “inconveniences”
for thermal power plants, and for the private miners who will for the first
time enter the coal sector in India as independent market suppliers of coal. This
OM is in fact a part of several relaxations in environmental regulations that
have been brought in the recent months, which are aimed at ease of sale,
transport, use and marketing of coal at the expense of environmental protection.
On 21 May 2020, the Ministry withdrew the requirement that supply, use or
transport of coal beyond a certain distance from the mine could only be done
with ash content of below a certain percentage (34%). The May 21, 2020
notification now permits “Use of coal by Thermal Power Plants, without
stipulations as regards ash content or distance”.
On 20
Oct 2020, the MOEFCC issued a
clarification which effectively means that TPPs/ coal mines can continue to
use trucks to transport coal almost indefinitely, without any limit. In theory
the MoEFCC requires coal transport to be done by rail and/or conveyors as road
transport can be highly polluting as well as a safety risk for local
communities.
Given all this, it is
clear that the recent OM is one more link in the continuing saga of MoEFCC’s blatant
abdication of its responsibility of protecting the environment.