Mining companies wanting to invest in mineral rich Jharkhand suffered a debacle after Ministry of Forest and Environment decided to raise red flag on Tori-Shivpur railway link crossing through densely forested areas. The proposed rail track was planned for transportation of coal from the North Karanpura coalfield operated by the Coal India Limited (CIL).

Proposed area expected to be affected by the link is 209 hectare that falls under dense forest cover. The proposal came in 2008 and interestingly the State Government had given its nod on it. However, the Centre did not uphold it and the proposal has been scraped. "The State gives its opinion keeping in mind several factors that also include commercial. However, the Forest Department is only concerned with forest protection and relevant acts based on the guidelines issued by the Government of India in this regard. Both have difference of interest," said a senior official of Forest Department.

The go ahead given by the State Government was based on considering alternative mode of transportation and pollution threats. The mine can produce 24 million tones of coal in year and shifting it through roadways would have required more land. "It would have generated air pollution and also affected efficiency of the company. Thus the Government here decided to give its nod," added the official. About 46 per cent of Coal India's raw coal production is dispatched through Indian Railways and most of the mines are located in dense forest areas.

The Central Coalfields Limited (CCL) that works as a one of the seven subsidiaries of CIL also had proposed for Hazaribagh-Shivpur line of 168 hectares. The final decision on this line is yet to be taken. The links are of circular in nature.

Forest Department works under the Forest Conservation Act for the protected forest and gives its suggestions and observations to the Centre. Nonetheless the final call is taken by the MoFE. Most of the time the decision is based on satellite imageries depicting actual forest covers in any particular forest area.

Sources in the Department suggested that the proposal was rejected due to dense forest and wildlife. However, chance for a fresh application is there on this issue but it is very unlikely that the Centre would reconsider the decision. "There must be some reason behind the decision and if it is right presently then how can it become wrong after sometime," said the official.

North Karanpura's contribution to Coal India's overall production has steadily declined from 6.1 per cent in 2005-06 to 5.5 per cent in 2009-10. Coal from this coalfield is supplied primarily to thermal power generation.