OREANDA-NEWS. July 26, 2011. National Aluminium Company Limited (NALCO), a Navratna PSU under the Ministry of Mines, Govt. of India, has received the   Stage-II (Final) forest clearance on July 20, 2011, for diversion of 110.3 hectares of forest land in the 1st renewal of mining lease for another 20 years in Panchpatmali South Block in Koraput district of Orissa, for bauxite mining operations. The original lease period expired after 30 years of mining. Keeping in view the current expansion projects being implemented by the company at its different units, this approval will help the company enhance its production capacity at the desired pace.

It may be mentioned that the State Government, had earlier sought approval of the Central Government for the diversion of 110.3 hectares of forest land in the 1st renewal of mining lease in Panchpatmali South Block for bauxite mining, in accordance with the Forest (Conservation) Act, 1980. After 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 & Forests, subject to fulfillment of certain conditions. The Government of Orissa furnished compliance report in respect of the conditions stipulated in the in-principle approval and requested the Central Government to grant final approval. On the basis of the compliance report, the Centre has granted approval for diversion of 110.3 hectares of forest land in Panchpatmali.

As per the approval, the period of diversion of the said forest land shall be for a duration co-terminus with the period of mining lease proposed to be granted under the Mines and Minerals (Development & Regulating) Act, 1957, or Rules framed there under, subject to a maximum period of 20 years. The company has to fulfill certain conditions laid down by the Ministry. The company has also to take up certain measures along with the State Government for afforestation on degraded forest land and preparing plan to wean away the practitioners of the ecologically destructive jhum cultivation in vicinity of the forest land being diverted and providing funds for its implementation.

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