F. No. 8-10/2015-FC

Sub.: Diversion of 54.399 ha of forest land including safety zone of 6.841 ha within total lease area of

70.917 ha for mining of Iron & Manganese in San Indupur Mines in favour of M/s National

Enterprises in Sundargarh Districts in the State of Odisha.

1. The Government of Odisha vide their letter no. 10F (Cons.)58/2015/4882/FE dated 20th March 2015 submitted

the above mentioned proposal to obtain prior approval of Central Government in accordance with section-2 of

the Forest (Conservation) Act, 1980.

2. Details indicated in the proposal submitted by the Government of Odisha are as given below in the form of Fact

Sheet:

FACT SHEET

1. Name of the Proposal Diversion of 54.399 hectares of forest land including

safety zone of 6.841 hectare within total Mining Lease area of 70.917 hectare for mining of Iron & Manganese

in San – Indupur Mines in favour of M/s National

Enterprises in Sundargarh District in the State of Odisha.

2 Location:

State Odisha

District Sundargarh

3. Particular of Forests

(i) Name of Forest Division Boani Forest Division

(ii) Area of Forest land for Diversion 54.399 hectares

(iii) Legal Status of Forest land DLC- 54.399 ha.

Total: - 54.399 ha.

(iv) Density of Vegetation 0.3 (Eco Value Class - I)

(v) Species-wise (Scientific names) and diameter

class wise enumeration of trees (to be enclosed.

In case of irrigation /hydel projects enumeration of FRL, RFL 2 meter & FRL- 4 meter also to be

enclosed.).

Species-wise and diameter Class-wise abstract of trees

enclosed vide Annexure – 17. (Pg-232-233/c)

Total – 67 trees (inclusive of all girt classes) will be

affected from the project

4. Brief note on vulnerability of the forest area to

erosion.

The applied area is not vulnerable to erosion.

5 Approximate distance of proposed site for

diversion from boundary of forest

The proposed site for diversion is situated at distance of

about 1.0 Km. from Mendhamaruni Reserve Forest of

Bonai Division.

6. Whether forms part of National Park, Wildlife Sanctuary, Biosphere Reserve, Tiger Reserve,

Elephant Corridor etc. (if so, the details of the

area the comments of the Chief Wildlife Warden to be annexed).

No

7. Whether any rare/ endangered/ unique species of

flora and fauna found in the area if so, details

thereof.

No rare / endangered / unique species of flora and fauna

is found in the applied area. However, the crop

composition of forest area is mainly Sal, Asan, Kasi, Cando, Jamu, Mahula, Bahada, Karanjaetc and the Wild

animals like Monkey, Fox, Jungle cat, Snake, and rabbit

are mostly found.

8. Whether any protected archaeological/ heritage

site/ defence establishment or any other important

No

monument is located in the area. If so, the details

thereof with NOC from competent authority, if

required.

9. Whether the requirement of forest land as

proposed by the User Agency in col.2 of Part-I is

unavoidable and bare minimum for the project. If

no, recommended area item-wise with details of alternatives examined.

The requirement of forest land as proposed by the User

Agency in Part – I is unavoidable and barest minimum

for the project.

10.

Whether any work in violation of the Act has

been carried out (Yes/ No). If yes, details of the same including period of work done, action taken

on erring officials. Whether work in violation is

still under progress.

The lease having 54.399 ha of DLC forest land was

granted RML on 25.01.2001, and executed on 18.07.2003 with retrospective effect from 10.09.2000

without F. C. clearance, which is a violation.

Mining operation carried out in DLC land over 12.30

Ac. i.e., in Plot No. 403 (P), 404(P) and 647 (P) as found during the Joint Verification on 11.08.2009. The

position of violation has been intimated to the

Conservator of Forests, Rourkela Circle vide Memo No. 4324 dt. 20.08.2009 of the Divisional Forest Officer,

Bonai Division with a copy to Chief Conservator of

Forests, Forest Division& Nodal Officer, F. C. Act, O/o

the PCCF, Odisha, Bhubaneswar and Collector, Sundargarh in the next memos. Further, the Collector,

Sundargarh has been requested to take legal action

against the Lessee for carrying out mining operation in the DLC land without F. C. clearance vide letter No.

5455 dt. 23.07.2014 of the Divisional Forest Officer,

Bonai Division. During the Site Inspection it was noticed that the

Safety Zone In between Pillar No. B1 to B3 has been

mined out to a width of 7.5 mtrs. Over a length of 191

mtrs. Subsequently, the area had been reclaimed and plantation taken up. Further, it was noticed that in

between Pillar No. A to B there is a dump which is

situated at a distance of about 25 mtrs. From the TeheraiNalla, though the minimum distance between

the Nalla and the dump should have been 50 mtrs.

11. Details of Compensatory Afforestation Scheme:

(i) Details of non-forest area/ degraded forest area

identified for compensatory Afforestation, its

distance from adjoining forest, number of patches, size of each patch.

Compensatory Afforestation area over 47.585 ha of non-

forest land has been identified in village Badgovindpur

and Badbahal of Athmalik Forest Division, and the CA Scheme has been prepared by the DFO, Athmalik and

enclosed vide Annexure – 22. (pg-244-263/c).

Non-forest land for CA has been identified in 2 patches of 44.807 ha and 2.751 ha in Bad Gobindapur

and Badbahal villages respectively.

The non-encroachment, and non-encumbrance certificate issued by the Tehsildar, Kishore Nagar, and

land suitability certificate furnished by the Divisional

Forest Officer, Athamalik Division are furnished at

(Page-269-270/c) and it has also been certified that the area identified for CA is not included in the DLC report

of Angul district or has not been allotted previously for

any other purpose.

(ii) Map showing non-forest/ degraded forest area identified for compensatory Afforestation and

adjoining forest boundaries.

Not enclosed.

(iii) Detailed compensatory Afforestation scheme

including species to be planted, implementing

Agency, time schedule, cost structure etc.

CA scheme involving financial outlay of Rs.

1,47,53,791/- including maintenance charges for 10

years has been submitted and a copy of the same is available at (Pg.-244-258/c).

(iv) Total financial outlay for compensatory

Afforestation scheme.

Comp. Afforestation Scheme is of Rs. 1, 33, 53, 791.00

Cost of Infrastructure Rs. 14, 00, 000.00 Total: Rs. 1,47,53,791.00 (Pg.-263/c).

(v) Certificate from competent authority regarding suitability of area identified for compensatory

Afforestation and from management point of

view. To be signed by the concerned Deputy Conservatory of Forests.

Divisional Forest Officer, Athmalik Forest Division has certified that non-forest land is suitable for CA. A copy

of the same is available at (Pg.245/c).

12. Site inspection report of the DCF (to be enclosed)

especially highlighting facts asked in Col. 7 (xi,

xii) 8 and 9 above.

Site inspection report of the DFO concerned has been

submitted (Pg.-241-243/c) wherein it is indicated that an

area of 7.5 meters’ width over a length of 191 meters of safety zone of has been mined out and is subsequently

reclaimed and planted. A dump at a distance of 25

meters from the Nallah against the permissible distance of 50 meters has also been reported by the DFO.

13. Divisional / District profile.

(i) Geographical area of the district / division 9712.00 sq. km.

(ii) Forest area of the District 4957.32 sq. km.

(iii) Total forest area diverted in the Division/ District

since 1980 with number of cases. Nos. of cases Area diverted in ha.

40 2965.169

(iv) Total compensatory Afforestation stipulated in

the District / Division since 1980 as on date.

01.01.2014

(a) Forest land including penal compensatory

Afforestation.

7288.664 ha.

(b) Non-forest land 1693.624 ha.

(v) Progress of compensatory Afforestation as on

date. 01.01.2014

(a) Forest land 4108.856 ha.

(b) Non-forest land 1488.304 ha.

14. Specific recommendations of the DCF for acceptance or otherwise of the proposal with

reasons.

On approval of the diversion proposal, the User Agency can operate the mines which will add to production of

Iron Ore 0.410 Million Tonne per annum, by which

people will get employment and Govt. will get revenue.

As per opinion of DFO, the proposal for diversion of 54.399 ha. (Including Safety Zone 6.841 ha.) of DLC

forest land may be approved in favour of the User

Agency by imposing necessary conditions.

3. The Government of Odisha in their letter dated 20th March 2015 submitted the following information pertaining to the proposal-

(i) The original mining lease was granted vide erstwhile Mining & Geology Department Order No. 6717/MG date

24.04.1980 for mining of iron & manganese ore over an area of 185.33 Acres or 75.00 ha in favour Mr.

Charanjit Singh Grewal who was carrying on business under the firm with name and style of M/s National Enterprises. Accordingly, the Original Mining lease was executed on 10.09.1980 for a term of 20 years, i.e.,

from 10.9.1980 to 09.09.2000 (Page-38-64/c). Surface rights were granted by the Collector, Sundargarh for a

total area of 67.587 ha on different occasions (page 154-157 /c).At the time of granting/executing the

original mining lease, the total mining lease area of 75.00 ha was non-forest. An area of 4.083 ha in the

originally granted ML area was proposed for surrender by the lessee vide his Letter No.252/99 dt.27.11.1999

addressed to the Collector, Sundargarh(Page - 65/c). The lessee had reportedly applied for grant of 1st RML

prior to one year of expiry of original ML period. After' having considered the 1st RML application, the Government in Steel & Mines Department vide their Proceedings No. 1219/SM date. 25.1.2001 granted 1st

RML in favour of lessee over an area 70.917 ha in village San-Indupur in the district of Sundargarh(page 66/c)

taking into consideration of the lessee’s representation for surrender of 4.083ha of land from the mining lease area. Thereafter, the relevant lease deed was executed for the 1st RML period for a period of 20 years on

18.7.2003 w.e.f 10.9.2000 to 9.9.2020. The copy of relevant lease deed so executed is placed at page 67-152/c.

Out of 70.917 ha of ML area during 1st RML period, an area of 54.399 ha of land was considered as Deemed Forest land and included in the DLC report of Sundargarh district in the year 1998 as per orders of Hon'ble

Supreme Court dt.12.12.1996 in W.P(C) No. 202/1995. The area of 4.083 ha earlier surrendered was also

deemed forest land and included in the DLC report. In view of the existence of 54.399 ha of land being treated

as Deemed Forest land, this forest diversion proposal has been filed/processed during 1st RML period for

obtaining prior permission of GoI, MoEF&CC under Section 2 of Forest Conservation Act, 1980.

(ii) During 1st RML period, ML area of 70.917 ha is comprised of 54.399 ha of DLC forest and the balance 16.518

ha non-forest land. As per joint verification report date 6.1.2011, total lease area of 70.917 ha. is broken

including 54.399ha. of DLC forest land prior to 12.12.1996. The land schedule of the total mining lease area over 70.917 ha duly authenticated by the Tahasildar, Koira and DFO, Bonai is at page 158/c. The Tahasildar,

Koira at page 159/c has certified that the Hal settlement for the land schedule of ML area was published on

1.4.1975 and the land schedule is found to be correct. Land schedule duly authenticated pertaining to DLC

forest land applied for diversion is at page 160/c. Similarly, the land schedule of DLC forest land for safety zone area is at page 161/c. Land schedule for broken up DLC forest land and broken up non-forest land in the

ML are at page 162 and 163/c respectively.

(iii) The total cost of the project is about Rs.68.26 Crores. This project will generate direct employment for 105

persons, and 2000 persons will be benefited indirectly. The project does not involve displacement of human

habitation.

(iv) The Modification to Mining scheme of San-Indupur Iron and Manganese Mines along with Progressive Mines

Closure Plan has been approved by IBM vide their letter MSM/OTFM/16-ORI/BHU/2011-12 date 8.7.2011

(Page 189-190/c). As per approved scheme, mineable reserve of 12. 07 Million tonnes of iron ore is existing in

the ML area. Considering annual production of 0.410MT of iron ore, the life of mines for iron ore will be 29

years.

4. Existing Land Use Pattern: -

Sl. No. Particulars Area in Ha.

DLC Non-Forest Total

1 Mining including road 35.432 4.864 40.296

2 Storing of minerals/ Ore -- -- --

3 Dumping of OB 7.700 1.501 9.201

4 Construction of building, power station etc -- 0.350 0.350

5 Township/ Housing colony 1.280 0.736 2.016

6 Magazine with safety zone 0.101 -- 0.101

7 Area covered under plantation 3.045 0.866 3.911

8 Safety zone 6.841 2.192 9.033

9 Undisturbed land -- 6.009 6.009

Total 54.399 16.518 70.917

Proposed Land Use Pattern: -

Sl. No. Purpose Proposed land use pattern (in Ha)

DLC Total Forest Non-Forest Total (4+5)

1 2 3 4 5 6

1 Mining including road 31.735 31.735 7.395 39.130

2 Storing of mineral 4.410 4.410 - 4.410

3 Dumping of OB 8.100 8.100 - 8.100

4 Storing of top soil 0.996 0.996 - 0.996

5 Storage of sub-grade ore - - 3.990 3.990

6 Storing of tools, machineries and area for work shop, beneficiation plan, crusher etc.

2.216 2.216 0.140 2.356

7 Construction building, power station etc." - - 0.350 0.350

8 Township/ Housing colony - - 1.585 1.585

9 Consumption of road, railway siding - - - -

10 Magazine with Safety Zone 0.101 0.101 - 0.101

11 Area covered under plantation - - 0.866 0.866

Sub-Total 47.558 47.558 14.326 61.884

12 Safety Zone 6.841 6.841 2.192 9.033

Total 54.399 54.399 16.518 70.917

(i) As per Joint Verification conducted by the officials of Mining and Forest Deptt. on 08.01.2011, They found that

out of total R.M.L. Area of 70.917 Ha. The D.L.C. kisam broken area is 54.390 Ha. Prior to 12/12/1996 and

diversion area is 47.558 Ha. The Joint Verification Report is placed in file at (Page-165/c).

5. Flora & Fauna

(i) Tree species which are commonly noticed in this area are Sal (Shorearobusta), Asan (Terminaliatomentosa), Kasi (Brideliaretusa), Kendu (Diospyrosmelanoxylon), Jamu (Syzygiumcumini), Mahul (Madhucaindica),

Bahada (Terminaliabelerica), Sal (Shorearobusta) is the predominant species (Page-241/c).

(ii) Wild animals such as Monkey (Presbytes entellus), Fox (Vulpesbengalensis), Jungle cat

(Feliuschausaffinis)and Rabbit (Oryctolaguscunniculus) and Snakes like common krait (Bungaruscareruleus), Rate Snake (Ptyasmucosus), Banded Krait (Bungarusfasciatus) Laudonkia (Dryophisnasutrus) are noticed in

the applied area(Page-241/c). No rare or endangered flora or fauna is noticed in this area. The area is coming

under Elephant Habitat Zone-2 as per report of the ORSAC, Movement of wild elephants is noticed in the

nearby area.

6. Wildlife Management

(i) A Site Specific Wildlife Conservation Plan has been prepared by the user agency pertaining to this project

area which has been approved by the PCCF(Wildlife) & CWLW, Odisha with a total financial outlay of

Rs.2,87,04,000/- (Page -217/c). The user agency has already deposited an amount of Rs.2,49,12,000/- in

favour of Adhoc-CAMPA through RTGS on dated 26.09.2014 in Union Bank of India, Sundernagar Branch,

New Delhi vide UTR No. ICICR52014092600027140 (Page -223/c).

(ii) Since the user agency is required to pay the proportionate cost of Regional Wildlife Management Plan @ Rs.

43,000/- per ha for the total leasehold area, the lessee has also deposited an amount of Rs. 30,49,431/- only

through RTGS in two phases i.e for Rs. 14,18,340/- dated 24.10.2011 and for Rs. 16,31,091/- dated

22.11.2013. The copies of the payment particulars are enclosed at (Pg.224-226/c).

7. Cost Benefit Analysis

The total benefit of this project comes to Rs.896.87 Crore. The loss on forests including environmental loss,

N.P.V cost and other mandatory payments comes to Rs. 4.16 Crore. Hence, the cost benefit ratio comes to 1: 216.

8. Safety Zone

An area of 9.033 ha.including 6.841ha of DLC forest land has been earmarked to be maintained as Safety Zone in

this project all along the outer boundary of the mining lease over 70.917 ha (Pg. -169-170/c).

9. Environmental clearance

The user agency has obtained Environment Clearance for this project from MoEF, Government vide Letter No. J-

11015/375/2008-IA. II (M) dt.28.6.2013 for enhancement of production of iron ore, from 23,625 tonnes per

annum (TPA) to 0.41 MTPA and screening and crushing Plant of 60,000 TPA capacity of ML area of 70.917 ha

subject to compliance of condition prescribed therein (Page-172-181/c).

10. Phased Reclamation Plan

The Phased Reclamation Plan has been furnished at Page-280-291/c), and the plan showing method of

reclamation and the phased reclamation plan have been enclosed as Plate No. VII and VIII respectively. The

scheme provides for reclamation of exhausted pits by backfilling with mine waste materials, taking up block plantation over the stabilized dumps as well as vacant areas. The user agency has furnished an undertaking to

execute this work (Page 288/c).

11. Mining Plan

The Modification to Mining scheme of San-indupur Iron and Manganese Mines along with Progressive Mines

Closure Plan has been approved by IBM vide their letter MSM/OTFM/16-ORI/BHU/2011-12 date

8.7.2011(page189-190/c). As per approved scheme, mineable reserve of 12. 07 Million tonnes of iron ore is existing in the ML area. Considering annual production of 0.410 MT of iron ore, the life of mines for iron ore will

be 29 years. The copy of approved scheme of mining is enclosed in a separate volume.

12. Resettlement & Rehabilitation Plan

The project does not involve displacement of any human habitation. Hence, resettlement and rehabilitation plan is

not required.

13. Compliance required under Forest Rights Act circulars of Government of India, MoEF&CC

The proposed mining lease area of San-indupur Iron and Manganese ore mines of the lessee is having 54.399ha.

of DLC forest land which includes 47.558ha. of DLC forest land for mining and allied activities and 6.841ha. of DLC forest land coming within the safety zone. The Collector, Sundargarh has furnished detailed compliance

required under the FRA circulars mentioned above in two phases. Collector has certified compliance regarding

47.558 ha. of forest land as per FRA circular dt. 3.8.2009 (page 191/c). Other documents like Gram sabha

resolution dt.17.8.2011 of San-indupur village and its English version are enclosed at page 171-193/DP.

Similarly, the Collector, Sundargarh has furnished required compliance of FRA pertaining to 6.841 ha. of forest

land located within the safety zone based on Gram Sabha resolution dt.18.12.2013 of San-indupur village.

However, the copies of Gram sabha resolution and its English version have not been included in the DP,

which are also required to be furnished by the lessee.

14. As per the certificates issued by the Collector, Sundargarh and Chairman DLC, it is revealed that no Primitive

Tribal Groups and Pre-Agricultural-Communities are occupying forest land and further no such facilities managed by Government requiring diversion of forest land under Section-3 (2) of FRA-2006 exist over the DLC forest area

of 54.399 ha proposed for diversion.

15. The facts of said proposal as stated above was considered in the meeting of Forest Advisory Committee held on

30.04.2015 and the Committee observed as below:

(i) The Original Mining lease was executed on 10.09.1980 for a term of 20 years, i.e., from 10.9.1980 to 09.09.2000.

(ii) The State Government in Steel & Mines Department vide their Proceedings No. 1219/SM dt. 25.1.2001

granted 1st Renewal of ML in favour of lessee over an area 70.917 ha in village San-Indupur in the district of Sundargarh accepting the surrender of 4.083 ha of land from the mining lease area as was proposed by the

user agency. Thereafter, the relevant lease deed was executed for the 1st RML period for a period of 20 years

on 18.7.2003 w.e.f 10.9.2000 to 9.9.2020. Out of 70.917 ha of ML area during 1st RML period, an area of

54.399 ha of land was considered as Deemed Forest land and included in the DLC report of Sundargarh district in the year 1998 as per orders of Hon’ble Supreme Court dt. 12.12.1996 in W.P(C) No. 202/1995.

(iii) The lease having 54.399 ha of DLC forest land was granted RML on 25.01.2001, and executed on

18.07.2003 with retrospective effect from 10.09.2000 without FC Clearance, which is a violation. (iv) Mining operation was carried out in violation of FC Act in DLC land over 12.30 Ac. i.e., in Plot No. 403 (P),

404(P) and 647 (P) as found during the Joint Verification on 11.08.2009. The position of violation has been

intimated to the Conservator of Forests, Rourkela Circle vide Memo No. 4324 date 20.08.2009 of the Divisional Forest Officer, Bonai Division with a copy to Chief Conservator of Forests, Forest Division &

Nodal Officer, F. C. Act, O/othe PCCF, Odisha, Bhubaneswar. The Collector, Sundargarh has been

requested to take legal action against the Lessee for carrying out mining operation in the DLC land without

prior approval under FC Act vide letter No. 5455 date 23.07.2014 of the Divisional Forest Officer, Bonai Division.

(v) Site Inspection Report of the concerned DFO also indicates that an area of 7.5 meters’ width over a length of

191 meters of safety zone of that forest has been mined out and is subsequently reclaimed and planted. A dump at a distance of 25 meters from the Nallah against the permissible distance of 50 meters has also been

reported by the DFO.

(vi) Further, it was noticed that in between Pillar No. A to B there is a dump which is situated at a distance of

about 25 mtrs. From the TeheraiNalla, though the minimum distance between the Nalla and the dump should have been 50 mtrs.

(vii) Compensatory Afforestation taken over an area 47.558 ha of non-forest land.

(viii) Non-forest land for CA has been identified in 2 patches of 44.807 ha and 2.751 ha in Bad Gobindapur and Badbahal villages respectively. Proposed CA land is not included in the DLC report on Angul district or has

not been allotted previously for any other purpose.

(ix) Collector has certified compliance regarding 47.558 ha. of forest land as per This Ministry circular on FRA dt. 3.8.2009 but the FRA certificate in respect of entire forest land being considered for diversion and the

copies of Gram sabha resolution and its English version have not been submitted.

(x) The proposed CA land patch measuring 44.807 ha was shown in the DSS and it was noticed that most part

of it is supporting mixed deciduous forest with moderate/open forest density. The Google earth imagery also indicated good forest cover. It was not clear as to how State Government has recommended this for CA

land.

16. Decision of FAC on 30.04.2015: The FAC recommended that following information may be obtained from the

State Government before processing the case further:

(i) A report on circumstances under which 1st renewal of ML in 2001 was granted and lease deed was executed in 2003 and mining was allowed without prior approval of the Central Government under FC Act

1980 despite of knowing the fact that since 1998 the status of 54.399 ha land was Deemed Forest as per the

orders of Hon'ble Supreme Court dt.12.12.1996 in W.P(C) No. 202/1995, the persons responsible for such

unauthorised renewal of ML, execution of lease deed and allowing the mining and the credible action taken by the state government against them.

(ii) The current status of the functioning of the mine.

(iii) In case the mining operations are stopped, the exact date of the closure of the mining operations along with the period for which mining was done in violation of the FC Act and the forest land involved in such

mining.

(iv) A report on credible action taken by the State for FC Violation carried out by the user agency or any other

agency. (v) Complete Compliance of Scheduled Tribe and Other Traditional Forest Dwellers (Recognition of Forest

Rights) Act, 2006 along with the translation of the gram sabha resolution.

(vi) DGPS Map of forest area proposed for diversion and non-forest I degraded forest area identified for Compensatory Afforestation and adjoining forest boundaries may be submitted. The proposed CA land

patch measuring 44.807ha was seen in the DSS and it was noticed that most part of it is supporting mixed

deciduous forest with moderate lopen forest density. How CA is being proposed on such a land may be clarified.

It was also recommended that Regional Office of the MoEF&CC shall carry out inspection and submit a

detailed report on mining in violation of FC Act 1980. The Regional Office may also inspect the proposed CA land and submit its comments.

Further it was recommended that is case the mining is still in operation the same may be stopped

immediately.

17. Recommendation of FAC was communicated to the State Government of Odisha vide letter dated 12.07.2015

(Pg. 317-318/c) and the Regional Office, Bhubaneswar also been requested vide letter dated 12.07.2015 (Pg.

316/c) to carry out inspection as per recommendation of FAC.

18. Now, Government of Odisha vide their letter no. 10F (Cons.) 153/2018/28085/FE dated 31.12.2018 (Pg.

422-501/c) submitted reply in response to Ministry’s letter dated 12.07.2015. Details are as under:

S. No. Observation Response

i. A report on circumstances under which 1st

renewal of ML in 2001 was granted and lease

deed was executed in 2003 and mining was allowed without prior approval of the Central

Government under FC Act 1980 despite of

knowing the fact that since 1998 the status of

54.399 ha land was Deemed Forest as per the orders of Hon'ble Supreme Court dt.12.12.1996

in W.P(C) No. 202/1995, the persons responsible

for such unauthorised renewal of ML, execution of lease deed and allowing the mining and the

credible action taken by the state government

against them.

In this regard, the State Government informed that

while forwarding the forest diversion proposal, it was

indicated that the Mining lease was granted originally

for mining of iron & manganese ore over an area of

185.33 Acres or 75.00 ha in favour of the lessee and

Original Mining lease was executed on 10.09.1980 for

a term of 20 years, i.e., from 10.9.1980 to 09.09.2000.

At the time of grant/execution the original Mining

lease, the total mining lease area of 75.00 ha was non-

forest. An area of 4.083 ha in the originally granted

ML area was proposed for surrender by the lessee vide

his Letter No. 252/99 date 27.11.1999 addressed to the

Collector, Sundargarh and accordingly the lessee had

reportedly applied for grant of 1st RML prior in due

time and State Government in Steel & Mines

Department vide their Proceedings No. 1219/SM

dt.25.1.2001 granted 1st RML in favour of lessee over

the reduced ML area of 70.917 ha. Thereafter the

relevant lease deed was executed for the 1st RML

period for a period of 20 years on 18.7.2003 w.e.f date

10.9.2000 to 9.9.2020. Out of 70.917 ha. of ML area

during 1st RMIL period, an area of 54.399 ha, of land

was considered as Deemed Forest land and included in

the DLC report of Sundargarh district in the year 1998

as per orders of Hon'ble Supreme Court dt. 12.12.1996

in W.P(C) No. 202 1995, As per joint verification

report furnished then, total lease area of 70.917 ha, is

broken including 54.399 ha. of DLC forest land prior

to 12.12.1996, the divisional forest officer, bonai

division vide his memo No 6936 Dt. 28.11.1999 had

intimated the Range Officer, Koira under intimation to

the lessee/DDM. Koira that the lessee be allowed to

continue mining in the entire broken area of 156.00

Acs. including the DLC land only up to end of lease

period (original) without felling of existing tree

growth, if any, and subject to fulfilment of terms and

conditions of the Mines Act. As such both the lessee

as well as the DDM, koira were aware of existence of

DLC forest land in the ML area and irregularities

involved in carrying out mining operation over the

broken up DLC land during 1st RML period.

In the above context is revealed from the report of

DDM, Koira date 6.8.2015 that State Government in

Steel & Mines Department vide their proceedings No.

1219 date 25.1.2001 granted 1st RML over reduced

area of 70.917 ha. for 20 years after the lessee

accepted the terms and conditions of grant order.

Thereafter lease deed for 1st RML was allowed to be

executed with a condition that after execution of lease,

the lessee would carry out mining operation over non

over non-forest area of the lease only and forest area

to be used for mining would be subject to having

forest clearance under FC Act, 1980.

After it was found that mining activities in DLC forest

land of ML continuing without having forest

clearance, the DFO, Bonai vide his letter No 4344 date

22.8.2009 directed to stop mining operation. The

lessee preferred to Challenge the order of DFO, Bonai

before the Hon’ble High court, Orissa in WPC No.

15386 of 2009. Hon’ble High Court in their order date

23.03.2010 had however directed that the petition be

allowed to operate the mines within the area broken

prior to 12.12.1996. Mining operation continued till

25.08.2010 by virtue of above High Court order.

However, mining operation was suspended due to

non-availability of E.C for this mines vide order No

21393 dt 26.08.2010 of DDM, Koira then.

In view that DLC forest land is involved in this

mining lease, it was indicated adequately while

forwarding the forest division proposal that execution

of lease dead during 1st RML period and carrying out

mining activities in certain portion of DLC forest land

without having forest clearance under Forest

Conservation Act 1980 amount to violation of the said

Act.

As reported by Steel & Mines Department in their

letter No: 3429 date 19.04.2017, the lease has the

following clearance pertaining of this mine.

(i) Environment Clearance date 28.06.2013 of

MoEF&CC for production of 0.41 MTPA of Iron

ore, screening and crushing of 60,000 TPA (ii) Consent to Operate of SPCB, Odisha date

19.03.2018 for production of Iron Ore 0.4 MTPA

which was valid up to 31.03.2018.

(iii) Scheme of Mining with PMCP approved IBM vide letter No MS/FM/25-ORI/BHU/2014-15

dt.15.05.2015 which Is valid till 31.03.2020

(iv) Surface right grant by collector, Sundergarh (v) NPV deposits of entire DLC forest land

amounting to Rs. 3,97,11,217/-

(vi) Order of Hon’ble High Court Dt. 23.03.2010 for carrying out mining operation over broken up

DLC land.

Despite having all these clearance, the lease is not

being allowed to operate the mines as per interim

order date 16.05.2014 of Hon’ble Supreme Court in

WPC No. 114/2014. Meanwhile, the Government in

Steel & Mines Department have Declared this lease as

lapsed w.e.f 25.08.2012 vide their proceeding date

27.06.2015. Subsequently, on the application of

lessee, the lease has been allowed to be revived vide

proceeding No. 4912 date 25.06.2018 of Steel &

Mines Department. Mining Operation has not been

allowed to be resumed as the lessee deposited the

compensation amount after the deadline of 31.12.2017

set by the Apex Court in their order dt.02.08.2017in

WPC No. 114/2014.

The above factual position may be taken into account

with regard to violation resorted to in this lease for

imposition of penalty for compliance.

ii. The current status of the functioning of the mine. In this regard, the State Government has reported that

the Mines is non-working since 26.8.2010.

iii. In case the mining operations are stopped, the In this regard, the State Government has reported that

exact date of the closure of the mining operations

along with the period for which mining was done

in violation of the FC Act and the forest land involved in such mining.

as per the report of the Deputy Director Mines, Koira

vide No. 21393/Mines dated 26.8.2010 mining

operation was carried out from 10.9.2000 to 22.8.2009

in violation of FC Act. 1980 involving 54,399 ha over

DLC land, however, mining operation has been

stopped since 26.8.010.

iv. A report on credible action taken by the State for FC Violation carried out by the user agency or

any other agency.

In this regard, the State Government informed that as

reported, 1st RML was executed on 18.07.2003 with

retrospective effect from 10.09.2000 for 20 years,

Lessee had undertaken mining operation in the DLC

land broken prior to 12.12.1996 for which DFO Bonai

Division vide his letter No. 4344/ dt.22.8.2009

directed the lessee to stop the mining operation and

advised the use Agency to obtain prior approval of

MoEF, GoI under FC Act, 1980. However, the lessee

filed V.P (C) No. 15386/2009 before Hon’ble High

Court, Orissa and vide order date 23.3.2010 (Pg. 479-

487/c) Hon’ble High Court passed an order to allow

the lessee to work within the broken DLC land prior to

12.12.96 over 54.399 ha and mining operation

continued up to 25.08.2010 by virtue of order of

Hon’ble High Court. Subsequently mining operation

was suspended due to non-availability of EC Vide

Order No. 21393 date 26.8.2010 of Deputy Director

Mines, Koira. It has been reported by RCCF, Rourkela

that the Collector, Sundargarh was requested to take

legal action against the Lessee for carrying out mining

operation in the DLC land without forest clearance

vide Letter No. 5455 dtd. 23.7.2014 of the DFO,

Bonai Division. The Collector, Sundargarh has

instructed the Tahsildar, Koira vide his Letter No. 383

date 3.8.2015 to take necessary legal action against the

Lessee Details of forest violations were also reported

to MoEF&CC while forwarding the instant forest

diversion proposal. At present, there is no mining

operation in the above mining lease.

v. Complete Compliance of Scheduled Tribe and

Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 along with the

translation of the gram sabha resolution.

In this regard, the State Government informed that it

was indicated at the time of furnishing the forest

diversion proposal that collector, Sundergarh had

furnished detailed compliance required under the FRA

circulars pertaining to 54.399 ha. of forest land in two

phases. Collectors had furnished FRA compliances

including certificates as well as Gram Sabha

resolution regarding 47.558 ha. Of forest land as per

FRA circular date 3.08.2009. Similarly, the Collector,

Sundergarh had furnished required compliance of

FRA pertaining to balance 6.481 ha. of forest land

located within the safety zone base on Gram sabha

resolution date 18.12.2013 of San-Indupur village.

However, the copies of Gram sabha resolution and its

English version were not furnished in the DP then.

The copy of FRA certificate pertaining to 6.841 ha. of

forest land along with Gram sabha resolutions date

18.12.2013 (Pg. 493-500/c) of San-indupur village

and its English version have been provided by PCCF,

Odisha vide his letter No. 19680 date 19.10.2016 (Pg.

443-501/c).

vi. DGPS Map of forest area proposed for diversion and non-forest I degraded forest area identified

for Compensatory Afforestation and adjoining

forest boundaries may be submitted. The

proposed CA land patch measuring 44.807ha was seen in the DSS and it was noticed that most part

of it is supporting mixed deciduous forest with

moderate/openforest density. How CA is being proposed on such a land may be clarified.

In this regard, the State Government informed that it is

submitted that required DGPS map of forest area

proposed for diversion and non-forest identified for

CA were submitted in FDP vide Plate No. XI, X(A) &

X(B) respectively. Further, the DFO, Athmallik

Division in his letter No. 2995 date 16.11.2015 has

indicated about the suitability of non-forestland

measuring 47.558 ha identified for Compensatory

Afforestation in villegeBadagobindapur and

Badabahal under Kishore nagarTahasil of Angul

district,

Copies of letter No. 9876 date 24.12.2018 (Pg. 428-

429/c) and No. 3429 date 19.4.2017 (Pg. 439-442/c)

of Steel & Mines department and No. 19680 date 19.10.2016 (Pg. 443-501/c) of PCCF, Odisha along with annexure in this context are attached.

19. Since the report from the Regional Office, Bhubaneswar was not received, the Regional Office, Bhubaneswar was

reminded for the same on 21.02.2019(Pg.507/c).

20. Now, the Regional Office, Bhubaneswar vide their letter No. 5-ORA247/2015-BHU dated 01.05.2019 (Pg.508-

523/c) has forwarded the Site inspection report in respect of diversion of 54.399 ha of forest land including safety

zone area of 6.841 ha within total mining leases area of 70.917 ha. in San-Indupur Iron & Manganese Mines of

M/s National Enterprises under Sundargarh district, Odisha during 1st Renewal of Mining lease.

21. The site inspection of the above diversion proposal was conducted by Shri R K Samal, DIGF (Central) during 10th and 11th April, 2019. During site inspection Shri MrutunjayaRoutray, AGM, National Enterprise and Shri Makar

Chandra Sahu, Surveyor, National Enterprise were present from the user agency side. Shri NSJP Sing, ACF,

Bonei, Forest Division, Shri B C Patra, RO, Koira and Shri Tapas Kumar Satapathy, Forester, Koira Section were present. During Inspection of CA area along with the representatives of User Agency as above Sri Gourishankar

Das, ACF, Athmalik Forest Division, Sri Chaitanya Behera, R/O Handpa and Sri PremanandDehury, Forester

Pedipathar were present. The SIR is reproduced below:

(i) Legal status of the forest land proposed for diversion:

54.399 ha. non-forest land declared as DLC forest as on 01.01.1998 as per the Hon’ble Supreme Court order

dated 12.12.1996 in. WP (c) No. 202/1995. Item-wise break-up details of the forest land proposed for

diversion:

Existing land use pattern:

S. No. Particulars DLC Non-forest Total

1. Mining including road 35.432 4.864 40.296

2. Storing of minerals/ore 0 0 0

3. Dumping of OB 7.700 1.501 9.201

4. Construction of building/power stations, etc. 0 0.350 0.350

5. Township/Housing colony 1.280 0.7736 2.016

6. Magazine with safety zone 0.101 0 0.101

7. Area covered under plantation 3.045 0.866 3.911

8. Safety zone 6.841 2.192 9.033

9. Undisturbed land 0 6.009 6.009

Total: 54.399 16.518 70.917

Proposed land use pattern: -

S. No. Particulars DLC Non-forest Total

1. Mining including road 31.735 7.395 39.130

2. Storing of mineral 4.410 0 4.410

3. Dumping of OB 8.100 0 8.100

4. Storing of top soil 0.996 0 0.996

5. Storage of sub-grade ore 0 3.990 3.990

6. Storing of tools, machineries and area for workshop, beneficiation plant, crusher, etc.

2.216 0.140 2.356

7. Construction of building, power station, etc. 0 0.350 0.350

8. Township/housing colony 0 1.585 1.585

9. Construction of road, railway siding 0 0 0

10. Magazine with safety zone 0.101 0 0.101

11. Area covered under plantation 0 0.866 0.866

Sub-total 47.558 14.326 61.884

12. Safety zone 6.841 2.192 9.033

Total 54.399 16.518 70.917

(ii) Whether proposal involves any construction of buildings (including residential) or not. If yes, details

there of: No

(iii) Total cost of the project at present rates: Rs. 6.845 crore as stated by the project proponent in the

proposal.

(iv) Wildlife: Whether forest area proposed for diversion is important from wildlife point of view or not:

The proposed area does not from part of National Park, Wildlife Sanctuary, Biosphere Reserve, Tiger

Reserve or Elephant corridor. No rare/endangered/unique species of flora and fauna is found in the applied

area. Wild animals such as monkey (Presbyters entellus), Fox (Vulpesbengalensis), Jungle cat

(Feliuschausaffinis), Rat Snake (Ptyasmucosus), Banded Drait (BungarusFasciatus) Laudonkia (

Dryophisnasutrus) are noticed in this area.

(v) Vegetation: Tree species which are commonly noticed in this area Sal (Shorearobusta) Asan (Terminalia

tomentosa), Kasi (Brideliaretusa), Kendu (Diospyrosmelanoxylon), Jamu (Syzygiumcumini), Mahul,

(Madhucaindica), Bahada (Termindliabelerica), Karanja, etc. Sal is the predominant species. The crop

density is about 0.3 with Eco value Class-1

a) Total number of trees to be felled:

67 number of trees above 30 cm girth have been enumerated over the applied area of 54.399 ha. The tree

enumeration report dates back to the year 2010. As observed in the field, many of the Sal saplings have

become ploes within the lease area near the office. This Sal pole bearing area may be of 1-2 Ha.

Effect of removal of trees on the general ecosystem in the area:Impact will be very minimal as there are

very few number of trees.

b) Important species: Tree species which are commonly noticed in this area are Sal (Shorearobusta) Asan

(Terminalia Tomentosa), Kasi (Brideliaretusa), Kendu (Diospyrosmelanoxylon), Jamu

(Syzygiumcumini), Mahul, (Madhucaindica), Bahada (Terminalia belerica), Karanja, etc. Sal is the

predominant species.

Number of trees of girth below 60 cm: The number of trees of girth below 60 cm is only one as most of the

trees existing there are miscellaneous trees like Mango, Simul, Bahada, Kadam, Moi, Bara, Jamun, Mahua

are very old and their girth is beyond 60 cm, there is no further regeneration of trees to have mi- size as the

area got mine lease since 1980.

of trees girth above 60 cm:66 number of trees.

(vi) Background note on the proposal: The mining lease was granted originally for mining of iron and

manganese ore over an area of 185.33 acres or 75.00 Ha. in favour of Mr. Charanjit Singh Grewal under

the firm name 0f M/s National Enterprises vide erstwhile Mining & Geology Department Order No.671/MG

dated 24.04.1980. Accordingly, the original mining lease was executed on 10.09.1980 for a term of 20 years

i.e. 10.09.1980 to 09.09.2000. Surface rights were granted by the Collector, Sundargarh for a total area of

67.587 ha. on different occasions. At the time of granting/executing the original mining lease, the total

mining lease area of 75.00 ha was non-forest. An area of 4.083 ha in the originally granted ML area was

proposed for surrender by the lessee vide his letter No.252/99 dated 27.11.1999. The lessee had

reportedly applied for grant of 1st RML application, the Steel & Mines Department, Govt. of Odisha vide

proceedings No.1219/SM dated 25.01.2001 granted 1st RML in favour of lessee over an area of 70.917 ha in

village San-indupur, taking due consideration of the lessee’s representation for surrender of 4.083 ha of

land from the mining lease area. Thereafter, relevant lease deed was executed for the 1st RML period for a

period of 20 years on 18.07.2003 w.e.f 10.09.2000 to 09.09.2020. No forest clearance was obtained under

the FC (Act), 1980 for this 54.399 ha. of DLC land during the execution of first RML. Prior to the execution

of 1st RML the joint verification of this project area wass done by the Dy. Director (Mines), Koira along with

the Forest Department on 14.10.1998 and the broken up area prior to 12.12.1996 was reported which

included this 54.399 ha. of DLC forest land out of the total lease of 75 ha. Since this DLC forest land was

broken prior to 12.12.1996, the DFO Bonei, vide his Memo No.6936 dated 28.11.1999 has written the Range

Officer, Koira Range with copy to Dy. Director (Mines), Koira to allow the continuance of mining in the

entire broken up area up to the end of the lease period i.e. 09.09.2000 without felling of existing tree growth

as the directives of Hon’ble Supreme Court of India was dated 12.12.1996 were not applicable on this

broken up land. He has also instructed the Range Office for taking up of the enumeration of the existing tree

growth within the broken up area. Further, DFO, Bonei vide his letter No.6939 dated 28.11.1999 had written

to ADM, Sundargarh about the No Objection for grant of renewal of balance area of lease considering the

said area to be under the category of non-forest land (after surrender of 4.083 ha), subject to the condition

that the lessee will deposit the royalty of forest growth after due enumeration by the Forest Department. The

lessee continued mining operation in the broken up forest land up to 22.08.2009 when the DFO, Bonei vide

his letter No. 4344 dated 22.08.2009 directed to stop the mining operation without FC. The lessee preferred

to challenge the order of DFO, Bonei before the Hon’ble High Court, Odisha in WP No. 15386 of 2009.

Hon’ble Court in their order dated 23.03.2010 had directed to allow the petitioner to continue till 25.08.2010

by virtue of the above High Court order No.21393 dated 26.08.2010 of Dy. Director (Mines), Koira.

Subsequently, the Govt. in Steel and Mines Department declared this lease as lapsed w.e.f. 25.08.2012 vide

their proceeding No.4912 dated 25.06.2018 of Steel and Mines Dept. The lessee has now applied for the

diversion under Section 2 of FC Act, 1980.

(vii) Compensatory afforestation: Total forest land involved in the mining lease is 54.399 ha including safety

zone area of 6.841 ha. Even though the joint verification report, it has been reported that the total land is

broken prior to 12.12.1996 when the status of land was non-forest, yet 47.558 ha of non-forest land

(excluding 6.841 ha safety zone) has been identified in two villages Badagobindpur and Badbahal of Kishore

Naga Tahasil in Athamalik forest division of Angul district of Odisha.

Name of Village Khata No. Plot No. Area in Ha. Kisam

Badagobidpur 90 (AAA) 1,5 & 9 44.807 Parbat-II

Badbahal 92 (AAA) 755(P) 2.751 Parbat-II

Total 47.558

Soil and moisture conservation has been proposed by constructing retaining walls

across ravines and loose boulder structure shall be constructed across the Nallah by digging staggered

trenches @600 numbers per ha. The size of trenches has been proposed to be 2 m X 0.5 m. Barbed wire

fencing and RCC pillars around the proposed CA site to reduce encroachment and biotic interference has

been proposed.

(a) Whether land for compensatory afforestation is suitable from plantation and management point of

view or not: Yes

(b) Whether land for compensatory afforestation is free from encroachment/other encumbrances: Yes

(c) Whether land for compensatory afforestation is import from Religious/Archaeological point of

view: Neither the area proposed for CA nor the area proposed for diversion is important from religious

or archaeological point of view:

(d) Land identified for raising compensatory afforestation is in how many patches, whether patches

are compact or not:2 patches. Patches are compact.

(e) Map with details: Enclosed in the diversion proposal.

(f) Total financial outlay: Rs.99,63,000/-

(viii) Whether proposal involves violation of Forest (Conservation) Act, 1980 or not. If yes, a detailed report

on violation including action taken against the concerned officials: Yes. Based on the report of DFO,

Bonai and RCCF, Roukela following violations have been reported in mining lease:

(a) Even though the lease is having 54.399 ha. of DLC forest land, yet 1st RML was granted on 25.01.2001

and executed on 18.07.2003 with retrospective effect i.e. from 10.09.2000 without prior approval of

MoEF&CC, Govt. of India, under FC Act, 1980.

(b) During joint verification on 02.03.2007 by Mining and Forest Department, it was pointed out that the

lessee was working in part of the DLC area.

(c) The lease area was again inspected jointly by Range Officer, Koira and Deputy Director of Mines, Koira

on 11.08.2009 and it was noticed that the lessee was carrying out mining operation in the DLC area in

Plot No. 404 (part) and 647 (part). Labour huts and dumping of Over Burden were also found in the

DLC land. Some safety zone pillars were missing in the field. At the southern and eastern part of the

lease, a portion of the dumping yard crossed the lease boundary.

(d) The user agency had extended his mining operation in Plot No. 404 (part involving 2.10 acres, Plot

No.647 (part) involving 7.20 acres and Plot No.403 (part) involving 3.00 acres. Besides, old dumps were

found in plot No.647 over an area of 2.00 acres and in Plot No.648 over an area of 4.00 acres.

(e) During site inspection by the DFO, Bonei it was noticed that the safety zone in between Pillar No. B1 to

B3 had been mined out to a width of 7.5 mitres over a length of 191 mtrs involving 0.143 ha.

Subsequently, the area has been reclaimed by taking up plantation, further, it was noticed that in between

pillar No. A to B, there is a dump which is situated at a distance of 25 mtrs from TeheraiNalla, though

the minimum distance between the Nalla and the dump should have been 50 mtrs.

As reported by PCCF, Odisha, this mining lease figures at SI. No.28 of Annexure IVA (details of the mining

leases having production without obtaining approval under FC Act, 1980 at all during subsisting lease period

and deemed extension period but leases were allowed to operate illegally) of the first report (Volume-III) on

illegal mining of iron and manganese ores in the State of Odisha of Justice M. B. Shah Commission of

Inquiry for illegal mining of iron ore and manganese.

The DFO, Bonei has requested the Collector, Sundargarh vide his letter No.5455 dated 23.07.2014 to take

legal action against the lessee for carrying out mining operation in the DLC land without forest clearance.

The lessee has claimed that they have paid the fine as per the orders of Hon’ble supreme Court of India for

the EC and FC violations along with interest.

(ix) Whether proposal involves rehabilitation of displaced persons. If yes, whether rehabilitation plan has

been prepared by the State Government or not: No.

(x) Reclamation plan: Enclosed in the proposal. Very less area has been mined out and therefore, reclamation

is not much. Only they have planted on the OB dumps for stabilization. As per the reclamation plan

submitted along with the proposal it will start from 2019-20. However, since the mine was closed the

reclamation work may start after substantial progress in mining and exhaustion of minerals.

Details and financial allocation: Not given.

(xi) Details on catchment and command area under the project:Not applicable.

Catchment area treatment plan to prevent siltation of reservoir: Not applicable.

(xii) Cost benefit ratio: 1:216

(xiii) Recommendations of the Principal Chief Conservator of Forest/State Government: Yes.

Recommended.

(xiv) Recommendations of Addl. Director General(Central) along with detailed reasons: Annexed separately.

(xv) DIG of Forests shall give detailed comments on whether there are any alternative routes/alignment for

locating the project on the non-forest land: It is site specific and it cannot be shifted to any other forest or

non- forest land.

(xvi) Utility of the project: In general, the project is site specific. The project is the living source of the local

tribes through engagement in the mine and ancillary activities and presently will provide employment to

about 200 persons as mine worker, supervisory staff and other activities Besides about 200 persons will be

indirectly benefitted.

Numbers of Scheduled Caste/Scheduled Tribes to be benefited by the project: As the area is Scheduled

Tribe dominated most of the employed will be form this caste only.

(xvii)

(a) Whether land being diverted has any socio-cultural/religious value: No.

(b) Whether any sacred grove or very old growth trees/forests exist in the areas proposed for

diversion: No. There are many mines and steel factories in this area. It shares border with Sanindpur

mines of M/s Rungta and Sons.

(c) Whether the land under diversion forms part of any unique eco-system:

The applied area does not form part of any national Park, wildlife Sanctuary, Biosphere Reserve, Tiger

reserve, Elephant Corridor, etc.

(xviii) Situation with respect to any Protected Area:The proposed site for diversion is situated at a distance of

about 1.0 km from Mendhamaruni Reserve Forest of Bonei Division. The Sonanala and its banks on the

western side of the lease are properly vegetated.

(xix) Any other information relating to the project: Based on the observation of the FAC on 30th April, 2015,

Ministry vide their letter F.N 8-10/2015-FCE dated 12th June, 2015 asked the Regional Office

(a) To carry out inspection of the proposed site and submit a detailed report on mining in violation of FC

Act, 1980.

(b) To carry out inspection of the CA area and submit its comments

The lease was lapsed by the Mines Dept. Govt. of Odisha vide their proceeding No.5770 dated 27.06.2015

w.e.f. 25.08.2012 due to continuous non-operation for 2 years. The lease has been revived vide State Govt.

Order No.4912/S&M dated 25.06.2018. Ministry letter No. 8-10/2015-FC dated 21st Feb., 2019 asked the

Regional Office to carry out the inspection as per the letter of Ministry’s even No. dated 12.06.2015. After

the inspection, the following comments are given on the above two points:

I. The mine was in operation from 10.09.2000 to 22.08.2009 without any forest clearance. The first

renewal order was on 25.01.2001 and execution of the lease deed on 18.07.2003 for the period from

10.09.2000 to 09.09.2020 by District Magistrate, Sundargarh and the user agency based on the NOC

issued by the DFO, Bonei vide his letter No.6939 dated 28.11.1999. In the meantime, With the

suspicion of the then DFO in 2007 about operation of mine without FC was noticed by DFO Bonei and

joint verification was carried out along with Dy. Director Mines, Koira during 2007 and 2009 and it

was found that the mining was operation on DLC forest land illegally without forest clearance.

Therefore, DFO ordered for stoppage of mining operation vide his letter No.4344 dated 22.08.2009.The

lessee challenged the said order in the Hon’ble High Court vide WP No.15386 of 2009 and the High

Court in their order dated 23.03.2010 allowed the petitioner to continue mining on broken up forest land

prior to 12.12.1996. The main emphasis of the Hon’ble High Court was on the no objection certificate

of the then DFO. As per the earlier survey during 1998 has been reported that all the DLC forest land in

the mining lease was broken prior to 12.12.1996 and therefore, mining continued on the broken up

forest land. The mining operation has been stopped since 26.08.2010 by the order of the Dy. Director

Mines, Koira vide his letter No.21393 dated 26.08.2010 due to non-availability of EC of the mine. The

operation of the mine from 10.09.2000 (start of 1st RML) was due to the execution of the 1st RML for

20 years over a reduced area of 70.917 ha. (reduced by 4.083 ha. due to surrender) between the District

Magistrate and Lessee i.e. M/s National Enterprises. The issue of the NOC by the then DFO that he had

no objection to the signing of the renewal of the lease on the reduced area of 70.917 ha. which included

the said 54.399 ha. of DLC forest land and with a view that the order dated 12.12.1996 of Hon’ble

Supreme Court of India was not applicable on the broken DLC forest land made it possible for

execution of the lease deed and continuance of mining till next DFO objected to it in 2009. However,

with the order of the Hon’ble High Court vide their order dated 23.03.2010 the mining continued till

25.08.2010 and finally stopped on 26.08.2010 with the order of the Dy. Director Mines due to non-

availability of EC. The user agency has paid the NPV for the whole forest area. In the meantime the

MMDR Act has been amended and the mine has not yet been allowed to operate without FC. The User

Agency has paid all the fines with interest for production violating EC and FC.

The lease area is mostly barren forest land without much forest cover. A natural stream with perennial

water flow namely ‘SonaNallah’ passes on the western side of the lease area. Most of the OB dump

near this Nallah have got settled and vegetated. In the unbroken area Sal saplings has grown in to poles.

The OB dumps as well as vacant spaces has been planted with miscellaneous trees like Acacia, Cassia,

Peltoforum, Simarouba, Kanchan, Mango, etc. and there is very less soil erosion. There is no flow of

water from the mine pits to the nallah. The mine has maintained a 7.5 mtr safety zone with plantation of

various species. They have done avenue plantations on the road sides. We may give a condition to

protect the nallah Banks with further plantation. There are many Iron ore mines nearby. The

Sanindpur mines of Rungta group is sharing boundary with it. The overall mine planning is very good.

The Proposal along with temporary working permission may be considered.

II. The proposed CA areas are situated in Athamallik Forest Division of Angul District. The CA areas are

having good growth of miscellaneous trees including bamboos. However, since these are non-forest

lands identified for mutation to Forest Department these areas may be accepted as CA land. The patch

at Badagobindpur is on small hillocks. In the vicinity there are many such hillocks and Full of small

trees with climbers of deciduous nature and look barren during summer. They contain various

miscellaneous trees and at some places their density is 0.5 to 0.6 These trees have almost attained their

best height as they cannot grow more as the hillocks are Stoney with mostly lateritic gravel soil.

Plantation of 1600 plants as proposed may not be a good proposition as the natural forest containing

many miscellaneous species (small trees, climbers, herbs, shrubs) along with associated biodiversity

and faunal species will be destroyed. Rather Forest Department may go for ANR plantation with a

maximum of 200 plants per ha. in the foothills where spaces available and having good soil depth along

with SMC measures as proposed and suitable degraded forest land elsewhere may be chosen to plant

balance 800 saplings per ha. out of found provided by user agency.

The land chosen at Badabahal is at a distance of 1 km from Badagobindpur. The land is having stoney

outcrops with less soil depth, where already clump of Kantabans (Bambusarundinacea) occur. There is

very less space with proper soil depth for plantation. Therefore, a maximum of 200 plants per ha.

(preferably Bamboo) may also be planted here. Emphasis on SMC measures for proper growth of

existing bamboo clumps may be given. Plantation of balance seedings on suitable degraded forest land

elsewhere may be taken up by forest Department with intimation of land details to Regional Office.

RECOMMENDATION OF THE ADDL. DIRECTOR GENERA (CENTRAL):

The above said mining proposal is for diversion of 54.399 ha of forest land including safety zone area of 6.841 ha

within total mining leases area of 70.917 ha (175.24 acres) in San-Indupur Iron & Manganese Mines of M/s National

Enterprises under Sundargarh district, Odisha during 1st Renewal of Mining lease period. Considering the facts

submitted in DP, Site inspection report by DIGF (Central) and other details, the major two issue of his proposal that

was directed by the Ministry vide letter No. 8-10/2015-FC dated 12.06.2015 to focus on the site inspection report,

i.e. (i) proposed CA land & (ii) a detailed report on mining in violation of Forest (Conservation) Act, 1980.

1) Proposed CA land: The detailed report of DIG (Central) may be referred.

2) A detailed report on mining in violation of Forest (Conservation) Act, 1980: The report of DIGF (Central)

are summarized below that may need to be brought to the notice for consideration by the FAC and the Ministry,

are the following: -

Originally, the lease was granted over 75 ha non-forest land from 10.09.1980 to 09.09.2000.

On 06.01.1998, 54.39 ha was notified as DLC forest land and accordingly the DFO Clarified on 28.11.1999

that the lessee can carry out mining in the broken area only, i.e. 156 acre broken prior to 12.12.1996 and up

to the end of the original lease period i.e. up to 09.09.2000.

Accordingly, the Steel & Mines Department executed the 1st renewal over 70.917 ha (the unbroken 4.083 ha

was surrendered) up to 09.09.2020 and allowed mining only on non-forest land (excluding DLC) mentioning

clearly that the user agency can mine in the DLC /forest land only after obtaining forest clearance.

The user agency carried out mining in violation of FC Act, 1980 from 2000 to 2009 in the DLC forest land

without Forest clearance, when the then DFO, Bonai issued notice on 22.08.2009 to stop the illegal mining.

The user agency/lessee went to High Court and obtained court order on 23.03.2010 for continuation of

mining in the broken up DLC forest land till the end of 1st renewal up to 09.09.2020.

Soon after the mining was stopped by DDM, Koira from 26.08.2010 for want of environment clearance.

Subsequently, Steel & Mines Department cancelled the lease on the ground of non-production of ore for 2

years i.e. 26.08.2012 as per proceeding dated 27.06.2015.

It is observed that the required EC was obtained by the user agency on 28.06.2013, but the mining could not

be revived due to stoppage of this mine by Hon’ble Supreme Court from 16.05.2014.

The CEC recommendation dated 26.04.2010:

Considering the peculiar circumstances of mining in Odisha including this mine, the CEC recommended on

26.04.2010 that mining may be allowed to continue after the NPV for the entire lease (forest) was paid by

the user agency.

CEC’s recommendation dated 26.04.2010 was subsequently endorsed by Hon’ble Supreme Court on

07.05.2010.

Accordingly, the so called questionable mining was made admissible up to 26.04.2010 as NPV was paid by

the user agency.

But it is observed that mining was going on till 26.08.2010 when it was stopped due to want of EC. Thus, the

said four months should have been treated as violation i.e. from 26.04.2010 to 26.08.2010.

But later on 02.08.2017, Supreme Court levied 100% penalty on the excess produce over the EC limit.

Examining all the NPV & penalty already paid against violation of EC/FC, it appears no violation of EC/FC

can further be made applicable.

So only lapse with respect to FC that may be attributed to in this proposal is the inaction of DFO, Bonai from

09.09.2000 to 22.08.2009 for not stopping the illegal mining without forest clearance which was stopped/

issued on 22.08.2009, which is also reiterated by the State Govt.

3) Other issues:

a) The vegetation along the SonaNalla which forms the eastern and southern boundary of the lease should be

augmented and conserved with special focus and care by the user agency.

b) There is a forest patch of 6 ha. (approx.) on northern side of the mine suppressed between National

Enterprises &Rungta Mines Limited, needs to be conserved and augmented by the Forest Department,

which may be degraded as a “no man’s land” in between the two mines.

This mining lease is an old mine worked since 1980 with other working mines adjacent to it, may not have

much adverse impact, if diverted for mining. With the above observations this proposal is recommended for

consideration of Ministry under Section 2 (ii) of Forest (Conservation) Act, 1980 for forest diversion.

In view of above, the facts related to the proposal may be placed before FAC in its next meeting scheduled to

be held on 22.05.2019 for their examination and appropriate recommendation.

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