Foot-dragging on finalising coal policy

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FE Report
The advisory committee responsible for finalising the coal policy, is yet to give it a final shape, sources at the energy division said.
They alleged that the reconstituted committee headed by a former vice chancellor of BUET was dragging its feet in providing a final version of the policy, although it was formed under a presidential order.
"The advisory committee missed the deadline once on June 21, 2007. After a few days, the committee members resumed its work from July 31. Unfortunately, it could not accomplish the work in the last two months," a source said.
"The cost of delay is enormous … The BNP government had shelved the plan to endorse the coal policy, understandably in the wake of nationwide debate and violent protests at Phulbari coal mine to be developed by Asia Energy Corporation. Now, the same thing is going to be repeated," the source added.
The 10-member advisory committee was supposed to submit the final version of the coal policy to the energy division in August.
The sources said the advisory committee held its first meting on July 31 and so far held several meetings, brainstorming on regulations governing the country's promising coal sector.
As the mining method seems to be the stickiest issue, the committee members decided, in principle, to leave the provision of mining method--both open pit and underground mining--to the future executing agencies of the coal sector, rather than drawing on a conclusion.
The committee members just concluded a two-day visit to the site in North Bengal on 21-22 September and had extensive talks with stakeholders, it is learnt.
"We'll meet again today (Monday) to discuss the issues related to the policy," a committee member said without elaborating.
The draft policy, formulated by the energy division, has so far placed top priority on ensuring the domestic energy security for at least 50 years and kept the option of public sector investment in coal mine development.
"Export of excess coals may be allowed only after ensuring the energy security of the country for 50 years under the Coal Sector Master Plan," says the policy, sixth of its kind.
"The amount of coal exports should not exceed the use of minerals in the mandatory mine mouth power plants. The ratio of coal exports and coal use in power plants will be 1:1," according to the draft policy.
The draft has also made it clear that national interest will be given the topmost priority while attracting foreign direct investments in the coal sector.
"So far the development of the sector is concerned, the public sector will be given priority in the coal policy. However, the government can take decision in the coal mine development by the private sector to avert potential energy crisis and ensure energy security in future," the policy maintained.
Given the energy security, the policy notes that private sector power generation must be encouraged as coal fired independent power producers (IPPs) to set up coal based power stations in the vicinity of coal mines.
But experts say it will be extremely difficult on the part of the government to develop the coal sector without participation of the private sector, given the track record of public agencies in the operation of certain coal mines, notably Barapukuria Coal mine project.
The immediate past BNP-led coalition government had initiated a move to frame the first ever coal policy and the revised it several times, but the issues of mining method, exports, royalty, environment and licensing regime stood in the way of its approval.
In a circular issued on June 21, the present caretaker administration constituted the advisory committee to give recommendations on the draft coal policy after necessary examination and scrutiny.