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The company must submit the land records showing possession of the land by June 10, the state agency said in its order recently.
The decision was taken as the company used the forest land for non-forest activities while there was no clearance from Union Ministry of Forest and Environment (MoEF),Idco said.
BSL (formerly known as Bhushan Steel & Strips Ltd) was provided 58.24 ha revenue forest land in Dhenkanal district and 3.24 ha forest land in adjacent Angul district in 2007 in form of lease by Idco for its steel and power unit in the area. However, the decision to divert the forest land for non-forest purpose was kept in abeyance by MoEF since 2006.
“The abeyance order issued by MoEF vide letter dated.11.12.2006 in respect of 61.48 ha. forest land for the proposed steel plant has been communicated to Bhushan Steel Ltd., but IDCO was kept in dark about the said abeyance order. BSL neither intimidated Idco about the final forest clearance being kept in abeyance nor did it submit to Idco a copy of show cause reply sent to DFO Dhenkanal,” said Chief General Manager (Land) of Idco in the order letter.
“Such violation amounts to breach of the terms and conditions of lease deed executed by IDCO in favour of M/s. Bhushan Steel & Strips Ltd ( now M/s. Bhushan Steel Limited) in respect of the diverted forest land.
Therefore, the allotment issued in favour of the company is hereby cancelled,” he added further in the letter.
The company is already fighting an environment rule violation case filed by the state government. In April this year, Dhenkanal Collector had filed a case against top company officials for construction of 440 Mw power generating unit near the steel unit of BSL at Dhenkanal without obtaining environmental clearances.
There were also allegation that BSL had violated rules pertaining to air and water pollution control measures.
