Review body favours jt venture coal mining

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FE Report
A coal policy review committee has reached a broader agreement not to allow coal exports considering the country's future energy security, while also giving priority to environmental protection.
The committee has also recommended 'limited' open-pit mining, taking into consideration the socio-economic and environmental aspects.
Headed by a former vice chancellor of BUET, the committee has also suggested involvement of foreign investors in the domestic coal sector, provided those partner with the proposed state-run company, the Coal Bangla.
"The policy will not only attach priority to the country's long-term energy security, but also to environment and social aspects," Abdul Matin Patwari, who heads the committee, told the final meeting Sunday.
The committee, however, could not reach a consensus on the royalty issue, leaving the same for consideration by the proposed Coal Sector Development Committee.
The review committee also recommended flotation of 20 per cent shares of future coal mining companies in the stock markets.
The committee will submit its final recommendations on the draft policy, framed in June 2007, to the Energy and Mineral Resources Division shortly.
The draft policy will be placed before the advisory council for endorsement after vetting by the law ministry, committee members said.
It has 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.
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 as 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.
But a committee member stated that the policy will have the option of public-private partnership for the development of coal sector.
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.
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 coal exports, mining method, environment and licensing regime stood in the way of its approval.
The present caretaker administration, in a circular issued on June 21, constituted an eight-member review committee to give recommendations on the draft coal policy after necessary examination and scrutiny. Later, the committee was expanded, bringing in four new members.
The committee, headed by Abdul Motin Patwari, was vested with the job of submitting the final proposal to the energy and mineral resources division, but it took more than six months to give final recommendations.