The recent change of guard at the Union ministry of environment & forests (MoEF) has fuelled hope for state run miner Odisha Mining Corporation (OMC) to secure swift forest clearance for its Daitari iron ore mines. OMC whose application for forest clearance for the Daitari mines is stuck with the MoEF for several months, expects faster processing with the exit of Jayanthi Natrajan.
“We are hopeful that the files would be cleared within 2-3 months as the new minister has already expedited several files within days of taking charge,” said Saswat Mishra, Chairman-cum-Managing Director (CMD) of OMC.
In its forest clearance application, OMC had requested that the adjacent 342.8 hectares (ha) forest area near its mining site should be converted into non-forest land, which would be utilised for storage of the mineral. Sources said, the former MoEF minister was sitting over the clearance proposal for the last four months even after the expert appraisal committee (EAC) had given its mandate in favour of OMC.
An application sent by OMC to divert the adjacent forest land finally reached the MoEF four months back with the recommendation of the state government and EAC.
“The delay in granting the clearance was costing us immensely as we had to cover a longer distance for ore transportation to our steel plant. Besides, it was affecting production at the site,” said an official of Visa Steel.
After the objection by DFO, OMC had undertaken partial production due to lack of storage area. In 2012-13, the Daitari mines recorded production of 703,440 tonnes of ore, less than its usual production of two million tonne per year (mtpa). After the grant of forest clearance, output would be raised to three mtpa, as per OMC plans.
Production enhancement at the Daitari is crucial as many units such as Visa Steel, Neelachal Ispat Nigam Ltd (NINL), Aarti Steels and Bhushan Steel depend on iron ore supplies from the site.
“We are hopeful that the files would be cleared within 2-3 months as the new minister has already expedited several files within days of taking charge,” said Saswat Mishra, Chairman-cum-Managing Director (CMD) of OMC.
In its forest clearance application, OMC had requested that the adjacent 342.8 hectares (ha) forest area near its mining site should be converted into non-forest land, which would be utilised for storage of the mineral. Sources said, the former MoEF minister was sitting over the clearance proposal for the last four months even after the expert appraisal committee (EAC) had given its mandate in favour of OMC.
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With 50 million tonnes deposits of iron ore, the Daitari mine at Talipada village under Keonjhar and Jajpur districts is OMC’s flagship operations. However, mining activity has dwindled significantly since September 2011, when the local divisional forest officer (DFO) sought an explanation from the state-run miner over use of reserve forest land for mining, infrastructure and ore transportation without forest clearance, in stark violation of the Odisha Forest Act, 1972 and Forest Conservation Act, 1980.
An application sent by OMC to divert the adjacent forest land finally reached the MoEF four months back with the recommendation of the state government and EAC.
“The delay in granting the clearance was costing us immensely as we had to cover a longer distance for ore transportation to our steel plant. Besides, it was affecting production at the site,” said an official of Visa Steel.
After the objection by DFO, OMC had undertaken partial production due to lack of storage area. In 2012-13, the Daitari mines recorded production of 703,440 tonnes of ore, less than its usual production of two million tonne per year (mtpa). After the grant of forest clearance, output would be raised to three mtpa, as per OMC plans.
Production enhancement at the Daitari is crucial as many units such as Visa Steel, Neelachal Ispat Nigam Ltd (NINL), Aarti Steels and Bhushan Steel depend on iron ore supplies from the site.