THE State Government is considering exporting millions of tonnes of high-polluting brown coal to developing nations under a plan championed by Energy Minister Peter Batchelor in a recent cabinet meeting.

As hundreds of people gather today in the Latrobe Valley to protest against Hazelwood, the state's dirtiest brown coal power station, a new environmental battle is likely against the Brumby Government over use of the state's massive coal reserves.

Government sources have told The Sunday Age that Mr Batchelor is supportive of an energy company's 40-year proposal to export 12 million tonnes of brown coal annually to India. Mr Batchelor took the idea to cabinet's policy and strategy committee recently.

Spokeswoman for Mr Batchelor Emma Tyner said any allocation of coal would require ''careful consideration of emerging needs and a rigorous environmental approval process''. She said no decision had been made.

The Sunday Age believes that ministers sought more information on the export proposal.