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Adani’s Forest Feat: How Union Coal Ministry Defied Conservation for Mining Gains

Lobbying for Profit: Adani Group's Windfall in Dense Forests

India CSR by India CSR
October 10, 2023
in News
Reading Time: 3 mins read
Gautam Adani

Gautam Adani, Chairman, Ambuja Cements

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Lobbying Power: Adani Group’s Fortunes Rise as Forests Open for Mining

In a daring move that raised eyebrows and environmental concerns alike, the Union coal ministry has ventured into India’s densest forest areas for mining, driven by relentless lobbying from an influential industry group, The Association of Power Producers. This audacious endeavor, as revealed by records obtained by The Reporters’ Collective, not only defied the environment ministry’s prior suggestions but also cast a shadow on conservation efforts. At the heart of this contentious saga lies the Adani Group, poised to reap substantial benefits from the ministry’s decision.

Lobbying for Profit

In November 2021, The Association of Power Producers wasted no time in urging the coal ministry to open up two coveted coal blocks nestled within India’s lush forests. Ostensibly, their plea was driven by concerns about a rumored coal shortage in the country, but it was no secret that this lobbying effort would considerably bolster the fortunes of their member, the Adani Group.

Adani’s Strategic Acquisition

Among the coal blocks under contention, one is strategically situated in Madhya Pradesh’s Singrauli coalfields, in close proximity to a thermal power plant recently acquired by the Adani Group in March 2022. The other, nestled within Chhattisgarh’s pristine Hasdeo Arand forests, stands adjacent to blocks that have long been exploited by the same conglomerate.

Challenging Conservation

The audacity of the coal ministry’s actions did not stop at merely acquiescing to the association’s demands. Instead, it ventured further, advocating for a review of the environment ministry’s 2018 recommendations. These suggestions, born out of ecological concerns, had designated 15 coal blocks, including one of the disputed ones, as exempt from coal mining auctions due to their high biodiversity value and the urgent need for conservation.

Questionable Review Process

To initiate this review, the coal ministry entrusted the task to the Central Mine Planning and Design Institute (CMPDI), a specialized institution affiliated with the ministry itself. CMPDI was tasked with assessing if portions of the 15 identified blocks could be extracted for mining while preserving the forests. This institute, according to its own description, serves as a “specialist consultant for all those in the mineral and mining sector.”

Expert Advice Disregarded

In a presentation to the coal ministry, the CMPDI presented its findings, unequivocally stating that none of the 15 coal blocks could be opened up for mining due to their location within areas densely covered by forests. Despite this clear expert advice, the coal ministry chose to override its own scientific institution’s recommendations, setting a controversial precedent in the name of mining gains.

In summary, the Union coal ministry’s bold move to prioritize mining interests over conservation in India’s densest forests has not only raised ethical and environmental questions but also highlighted the influence of lobbying in shaping critical policy decisions, with the Adani Group emerging as a notable beneficiary of this contentious saga.

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