National Aluminium Company Ltd (Nalco) has received Stage-II (final) forest clearance for renewal of its bauxite mining lease for the Panchpatmali South Block in Koraput district of Orissa for 20 more years, requiring the diversion of 110.3 hectares of forest land.

The original lease period in the Panchpatmali South Block expired after 30 years of mining. Keeping in view the current expansion projects being implemented at different units, this approval will help the company enhance its production capacity at the desired pace, a Nalco release said today.

It may be noted that the Orissa Government had earlier sought the approval of the Centre for diversion of 110.3 hectares of forest land while renewing the mining lease in the Panchpatmali South Block for bauxite mining, in accordance with the Forest (Conservation) Act, 1980.

After the consideration of the proposal by the Forest Advisory Committee constituted by the Central Government, Stage-I (in-principle) approval for the diversion was granted by the Ministry of Environment and Forests, subject to fulfilment of certain conditions, it said.

The Orissa Government furnished a compliance report in respect of the conditions laid down in the in-principle approval and requested the Centre to grant final approval. On the basis of the compliance report, the Centre last week granted approval for diversion of 110.3 hectares of forest land in Panchpatmali.

As per the approval, the period of diversion of the forest land shall be for a duration co-terminus with the period of the mining lease proposed to be granted under the Mines and Minerals (Development & Regulation) Act, 1957, or rules framed there under, subject to a maximum period of 20 years.

The company also has to fulfil certain conditions laid down by the Ministry. It has to take up certain measures along with the Orissa Government for afforestation on degraded forest land and prepare a plan to wean away the practitioners of ecologically destructive jhum cultivation in the vicinity of the forest land being diverted, as well as provide funds for its implementation.

The Centre, while granting the approval, has also directed the State Government to ensure proper utilisation of the company’s CSR fund for peripheral development activities, company sources said.

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