The decision of the Union Cabinet is aimed at finding a pragmatic and balanced approach towards the issue of environmental clearances to mining areas, while ensuring ecology is not hurt, sources said.
Talking to PTI separately, Coal Minister Sriprakash Jaiswal said: "the Cabinet Committee of Infrastructure (CCI) today referred the matter to a Group of Ministers for discussions on the issue".
He, however, added that "members of the panel will be decided by the Prime Minister Manmohan Singh soon and we are waiting for the further guidelines".
The Coal Ministry has been pressing for lifting the ban but the Environment Ministry has refused to relent. As a result, the matter reached the Prime Minister`s Office which is keen to find a solution, sources said.
The GoM is likely to be headed by Finance Minster Pranab Mukherjee and would include senior ministers-- Home Minister P Chidambaram, Coal Minister Sriprakash Jaiswal, Environment Minister Jairam Ramesh, Mines Minister B K Handique and Plan Commission Deputy Chairman Montek Singh Ahluwalia, the sources added.
Last year, Environment Ministry had defined `no-go` areas for mining as those that have over 30 per cent gross forest cover or over 10 per cent weighted forest cover.
As per the guidelines, the mining is allowed only in the `go` areas.
The `no-go` classification has brought 206 coal blocks involving a production potential of 660 million tonnes per annum (MTPA) under its ambit.
"The issue is not percentage, our view is that a pragmatic approach should be followed which does not hamper the growth of the country and we are hopeful that the GoM will precisely achieve that," source in coal ministry said.
Earlier, the Coal Ministry had vehemently opposed `no-go` classification, by saying that not permitting coal mining in 206 blocks would affect about 1,30,000 MW potential power generation capacity.
These coal blocks are spread across 4,039 sq km in nine coalfields.
The sources said an attempt is being made to find a balance between exploitation of the coal reserves and protection of the environment.
In this direction, an idea is being mooted under which mining in a forest area could be undertaken in phases, the sources said. .