File No. 8-18/ 2011-FC

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1 64 Agenda -9 File 8-18/ 2011-FC 1. Government of Odisha vide their letter dated 23 rd December 2013 submitted a report on compliance to conditions stipulated in the stage-i approval under the Forest (Conservation) Act, 1980 for diversion of ha. for additional forest land (including ha. for safety zone) for Iron Ore Mining and allied activities in Oraghat Iron Mines of M/s Rungta Sons Private Ltd. under Bonai Forest Division, Sundergarh district of Odisha accorded by this Ministry vide letter dated 1 st March 2011 and requested this Ministry to accord inter-alia stage-ii approval under the Forest (Conservation) Act, 1980 for diversion of the said forest land. 2. Details of conditions stipulated in the stage-i approval under the Forest (Conservation) Act, 1980 accorded by this Ministry vide the aid letter dated 1 st March 2011 and status of their compliance indicated in the Government of Odisha s said letter dated 23 rd December 2013 are as below: (i) Legal status of the diverted forest land shall remain unchanged; In compliance to the above, it is submitted that legal status of diverted forest land remains unaltered. However, the user agency has also submitted an undertaking not to change the legal status of the diverted forest land which is enclosed as Annexure-I(C). (ii) Compensatory afforestation over the non-forest land equal in extent to the ha. virgin DLC forest land being diverted shall be raised and maintained by the State Forest Department at the cost of the User Agency; In compliance to the above, an extent of ha of non-forest land has been identified for compensatory afforestation in village Ruguda under Koira Tahasil of Sundargarh district of Odisha. The Compensatory afforestation scheme has been technically approved for Rs. 43,37,000/- at the current wage rate of Rs. 150/- per manday including cost of infrastructure. The user agency has deposited an amount of Rs 43,37,000/- in favour of Ad-hoc CAMPA through RTGS in Account of Union Bank of India, Sunder Nagar, New Delhi The copy of the approved revised financial outlay for CA Scheme RTGS receipts dated for Rs. 27,74,100/- and for remaining amount of Rs. 15,62,900/- dated are enclosed as Annexure-I, I(A) & I(B) respectively.

2 65 (iii) The non-forest land identified for raising compensatory afforestation shall be transferred and mutated in favour of the State Forest Department before issue of the Stage-II clearance; (iv) The non-forest land which is transferred and mutated in favour of the State Forest Department for the purpose of compensatory afforestation, shall be declared as Reserved Forest under Section-4 or Protected Forest under Section-29 of the Indian Forest Act, 1927 or under the relevant Section(s) of the local Forest Act; (v) The State Government shall raise the compensatory afforestation over the degraded forest land equal in extent to the forest land being diverted (i.e ha.) at the expense of the User Agency; In compliance to the above, the non-forest land identified for raising compensatory afforestation over ha in village Ruguda under Koira Tahasil of Sundargarh district of Odisha has already been transferred and mutated in favour of the State Forest Department. The copy of the ROR is enclosed herewith as Annexure-II. In compliance to the above, it is submitted that the mutated/alienated non-forest land of ha. bearing Khata no. 48/21 and Plot no. 353/867, 368/869, 374/871 in Ruguda Village under Koira Tahasil of Sundargarh district has been notified as 'Protected Forest' under Section-33 of the Odisha Forest Act-1972 vide Forest& Environment Department Notification dt Copy of the said Notification has also been endorsed to the MoEF vide Memo dt A copy of the above mentioned Notification is enclosed as Annexure-IIA. In compliance to the above, the scheme for compensatory afforestation over the degraded forest land identified in Rushimath RF under Bonai Forest Division of Sundargarh district has been technically approved for Rs. 29,32,000/- at the current wage rate of Rs.150/- per manday by the Addl. Pr. CCF (Forest Diversion) & Nodal Officer, FC Act. The above amount has been deposited by the user agency in favour of Ad-hoc Body of CAMPA through RTGS in two phases i.e Rs. 16,28,800/- on dated and Rs. 13,03,200/- on dated in Account of Union Bank of India, Sunder Nagar, New Delhi The copy of the approved financial outlay and RTGS receipts mentioned above are enclosed herewith as Annexure-III, III(A) & III(B) respectively. (vi) The User Agency shall transfer the cost of raising and maintaining the compensatory In compliance to the above, the user agency has deposited an amount of Rs. 43,37,000/- towards the cost of raising and maintaining compensatory afforestation over ha of

3 66 (vii) afforestation over the non-forest land equal in extent to the ha. virgin DLC forest land being diverted, and the degraded forest land equal in extent to the forest land being diverted (i.e ha.), at the current wage rates, to the State Forest Department; Following activities shall be undertaken by the User Agency at the project cost: non-forest land mutated in favour of Forest Department as per the approved revised financial outlay at the current wage rate of Rs 150/- in favour of Ad-hoc Body of CAMPA through RTGS in two phases i.e Rs. 27,74,100/- dated and Rs. 15,62,900/- dated in Account of Union Bank of India, Sunder Nagar, New Delhi Details in this regard are indicated in compliance to condition 2(ii) above. Further an amount of Rs. 29,32,000/- technically approved at current wage rate of Rs. 150/- per man-day has been deposited by the user agency in favour of Ad-hoc Body of CAMPA through RTGS in two phases i.e Rs. 16,28,800/- on dated and Rs. 13,03,200/- on dated in Account of Union Bank of India, Sunder Nagar, New Delhi Details in this regard are indicated in compliance to condition 2(v) above. (a) A plan containing appropriate mitigative measures to minimize soil erosion and choking of streams shall be prepared and implemented; (b) Planting of adequate drought hardy plant species and sowing of seeds in the appropriate area within the mining lease to arrest soil erosion; (c) Construction of check dams, retention /toe walls to arrest sliding down of the excavated In compliance to the above, the relevant scheme prepared by the user agency has been technically approved by Regional Chief Conservator of Forests, Rourkela Circle with financial outlay of Rs. 1,49,54,300/- at current wage rate of Rs. 150/- per Manday. The copy of the approved scheme is enclosed in a separate volume as Annexure-IV. In compliance to the above, the relevant scheme prepared by the user agency has been technically approved by Regional Chief conservator of Forests, Rourkela Circle with financial outlay of Rs. 1,11,66,100/- at current wage rate of Rs. 150/- per Manday. The copy of the approved scheme is enclosed in a separate volume as Annexure-IV(A). In compliance to the above, the relevant scheme prepared by the user agency has been technically approved by Regional Chief Conservator of Forests, Rourkela Circle. There

4 67 material along the contour; is no financial provision required since the financial provision for the activities suggested in the scheme has already been made in the scheme for mitigative measures to minimize soil erosion and chocking of streams. The copy of the approved scheme is enclosed in a separate volume as Annexure-IV(B). (d) Stabilize the overburden dumps by appropriate grading/benching so as to ensure that that angles of repose at any given place is less than 28 o ; and (e) Strict adherence to the prescribed top soil management. (viii) The State Government shall charge the Net Present Value (NPV) of the forest area diverted under this proposal from the User Agency as per the Orders of the Hon ble Supreme Court of India dated , and in Writ Petition (Civil) 202/1995 and the guidelines issued by this Ministry vide its letter 5-3/2007-FC dated in this regard, if the same has not been paid so far; In compliance to the above, the relevant scheme prepared by the user agency has been technically approved by Regional Chief Conservator of Forests, Rourkela Circle. Since the financial provision for the activities suggested in the scheme has already been made in scheme for mitigative measures to minimize soil erosion and chocking of streams no financial provision is further required. The copy of the approved plan is enclosed in a separate volume as Annexure-IV(C). In compliance to the above, the relevant scheme prepared by the user agency has been technically approved by Regional Chief Conservator of Forests, Rourkela Circle with financial outlay of Rs. 3,19,700/- at current wage rate of Rs. 150/- per Manday. The copy of the approved scheme is enclosed in a separate volume as Annexure-IV(D). The mining lease area of ha includes ha of forest land. The forest land of ha comprises ha of Khesra forest land diverted earlier during original mining lease period vide Eastern Regional Office, MoEF letter 8(21)5/2000-FCE dt and ha of additional forest land proposed for diversion during original mining lease period but final approval not yet granted within the expiry of original Mining lease period on The user agency had deposited Rs. 81,00,000/- towards NPV@ Rs. 7,50,000/- per hectare for ha already diverted forest land having canopy/crop density 0.2 with Eco-value Class-I prior to revision of NPV by Hon'ble Supreme Court vide their order dt Further, the user agency has deposited an amount of Rs. Rs. 7,30,000/- per hectare for ha of forest land proposed for

5 68 (ix) (x) (xi) At the time of payment of the Net Present Value (NPV) at the present rate, the User Agency shall furnish an undertaking to pay the additional amount of NPV, if so determined, as per the final decision of the Hon ble Supreme Court of India; All the funds received from the User Agency under the project shall be transferred to Ad-hoc CAMPA in Account Number- Account of Union Bank of India, Sunder Nagar, New Delhi ; The User Agency shall obtain the Environment Clearance as per the provisions of the Environmental (Protection) Act, 1986, or any other clearances required for such project; diversion having canopy density 0.1 with Eco- Value Class-I. Thus the user agency has deposited a total amount of Rs. 5,49,17,090/- towards Net Present Value (NPV) for the entire forest land of ha. existing within the ML area. The above amount has been deposited in favour of Ad-hoc Body of CAMPA in Account CA-1585 of Corporation Bank, Lodhi Road, New Delhi. The copy of the demand notice issued by DFO, Bonai, copy of treasury challan for Rs. 81,00,000/- and Bank Draft bearing dtd for Rs. 4,68,17,090/- are enclosed as Annexure-V, V(A) & V(B) respectively. In compliance to the above,the user agency has submitted and undertaking to deposit additional amount of NPV of diverted forest land, if becoming due after finalization of same by the Hon ble supreme court of India, enclosed as Annexure -VI In compliance to the above, all the funds received from the user agency in respect of the components as against diversion of forest land, have been transferred to Ad-hoc CAMPA in Account , of Union Bank of India, Sunder Nagar, New Delhi and Account CA of Corporation Bank, Lodhi Road, New Delhi. The details of funds realized from the User Agency in respect of this project indicated separately in an Annexure. In compliance to the above, Environmental clearance has been accorded by the Government of India, MoEF vide their letter J /23/2007 IA/II (M), dated pertaining to this mine for Iron ore production to the tune of 1.94 Million tones annually by open cast mechanized method which is enclosed as Annexure-VII.

6 69 (xii) (xiii) The User Agency either himself or through the State Forest Department shall undertake fencing, protection and afforestation of the safety zone area (7.5 meter strip all along the outer boundary of the area identified to undertake mining), at the project cost; The User Agency either himself or through the State Forest Department shall undertake afforestation on degraded forest land, one and half time in extent to the area used for safety zone; The mining lease area of ha includes ha earmarked as safety zone area. This includes ha of forest land (1.28 ha KF and ha DLC lease land). During earlier diversion of ha of forest land during the original mining lease period the user agency had deposited an amount of Rs. 1,56,300/- towards the cost of fencing, protection regeneration and maintenance of safety zone over 1.28 ha through treasury challan dated As has been indicted while processing the diversion proposal for ha of additional forest land, forest area of ha has been earmarked for safety zone which includes 1.28 ha of KF land and ha of DLC forest land. In order to fence, protect, regenerate and maintain the safety zone, the user agency has deposited an amount of Rs. 3,68,400/- at the current wage rate of Rs. 150/- per Manday over an area of ha through NEFT/RTGS in two phases i.e. Rs. 1,87,500/- on dated and Rs. 1,80,900/- on dated in favour of Ad-hoc CAMPA Account of Rs. 1,80,900/- is part of total deposit of Rs. 15,45,500/- made by user agency through RTGS on The copy of the treasury challan and the said NEFT/RTGS receipts are enclosed herewith as Annexure VIII, VIII(A) VIII(B) respectively. In compliance to the above, the user agency had earlier deposited an amount of Rs. 34,000/- towards the cost of afforestation in degraded forest over 1.92 ha towards 1.5 safety zone in compliance to the condition stipulated for diversion of ha through Treasury Challan dated For instant diversion proposal, the user agency has deposited an amount of Rs. 24,68,100/- for afforestation over 1.5 safety zone over an area of ha (3.649 ha X 1.5) at the current wage rate of Rs. 150/- per Manday in two phases through RTGS i.e. Rs. 11,03,500/- on dated and Rs. 13,64,600/- on dated in favour of Adhoc Body of CAMPA. The amount of Rs. 13,64,500/- is part of deposit of Rs. 15,45,500/- made by user agency on through

7 70 (xiv) The period of diversion of the said forest land under this approval shall be for a period co-terminus with the period of the existing mining lease granted under the Mines and Minerals (Development & Regulation) Act, 1957, or Rules framed there under, subject to a maximum period of 20 years; RTGS. The copy of the Treasury Challan and RTGS receipts are enclosed as Annexure VIII, VIII (B) & VIII (C). The period of diversion under this approval shall be a for period conterminous with the period of the mining lease to be granted under the Mines and Minerals (Development & Regulation) Act, 1957, or Rules framed there under. The user agency has submitted an undertaking I this regard which is enclosed as Annexure VIII (D). In this context, it is worth mentioning that the Government of India, MoEF have issued detailed guidelines vide letter F /2011 FC dated with regard to simplified procedure for grant of approval under F.C. Act, 1980 in certain cases of renewal of mining leases. The above guidelines reads as in cases, where before submission of a report on compliance to conditions stipulated in the in-principal approval by the concerned State /Union Territory Governments within the stipulated period of five years from the date of grant of in principle approval, and grant of final approval by the Central Government, validity of the mining expires, instead of submission of a de-novo proposal to obtain approval of Central Government under the FC Act for such Forest Land, for renewal of mining lease, the State /UT Governments while submitting report on compliance to conditions stipulated in the in principle approval may seek approval of Central Government under the FC Act for diversion of such forest land for (i) original period of the mining lease for which in principle approval has already been accorded by the Central Government ; and also for (ii) renewal of mining lease for a period,as specified by the State/Union Territory Government, not exceeding twenty years.. The mining lease of Oraghat Iron Ore Mines of M/s Rungta Sons (P) Ltd. over and area of ha was executed on for a period of 30 years. As such validity of the

8 71 lease period expired on The Mining lease of ha includes ha of forest land comprising of ha of Khesra Forest and ha of DLC forest land. During Original Mining lease period, forest land of ha of forest was accorded with final forest clearance by Ministry of Environment & Forest, Government of India Eastern Regional Office, Bhubaneswar vide letter 8(21)5/2000-FCE dated leaving and area of 1.28 ha of Khesra forest land earmarked for safety zone as per provision of para 4.7 (i) of F.C.Act guidelines then. However, keeping in view the observation of Central Empowered Committee in their report dt in IA /2009 and orders of Hon ble Supreme Court, thereon dt , entire forest land of the Mining lease is required to be diverted under provisions of F.C. Act In compliance to the above order of Hon ble Supreme Court, the user agency applied for diversion of remaining extent of forest land of the ML area to the tune of ha. (1.28 ha of K.F ha of DLC forest land ) during currency of original mining lease period which was duly recommended by the State Government to MoEF for consideration vide letter 2057 dt The proposed forest land for diversion also includes ha of forest land earmarked to be maintained as safety zone. The Government of India, MoEF have accorded Stage I approval for diversion of ha of additional forest land in this lease vide letter FC dated during the currency of original mining lease period. While the condition stipulated in the Stage I approval order were under compilation /compliance, the original Mining lease period of this lease expired on As per GoI, MoEF detailed guidelines vide letter F /2011-FC dated for processing the cases of forest clearance in terms of submission of compliances to Stage I approval order issued during previous of ML period but final approval not accorded before expiry of lease

9 72 period, the following facts may be considered by the Ministry of Environment & Forests, Government. Stage-II approval for diversion of ha of forest land in this lease was accorded by MoEF, Eastern Regional Office vide their letter dt during validity or original mining lease period. Further Stage I approval for remaining ha of forest land was accorded by MoEF vide their letter dt during the last of part of original mining lease period. Original Mining lease period expired on As reported by the Pr. CCF, Odisha, the User Agency has filed 1st RML application on for a period of 20 years i.e. from to , which is one year prior to expiry of lease period. The copy of the RML application filed and receipt thereof are enclosed as Annexure VIII (E) for ready reference. As such the lease is under Deemed RML as per provisions of 24 A (6) of M.C Rules, While the conditions of Stage I approval order dt accorded during original mining lease period, were under compliance /compilation, the original Mining lease period expired on Thus the date of grant of Stage I approval order is not much before the date of expiry of original mining lease period and the compliances to the Stage I approval order is being process well within the period of five years allowed by MoEF as per para 4.2 (ii) of F.C. Act guidelines circulated by GoI, MoEF. There does not seem to be necessity of processing a de-novo proposal under F.C. Act, 1980 during 1st RML period w.e.f as information earlier furnished for processing the diversion proposals during original mining lease period remains valid during 1st RML period a well as it covers entire extent of forest land of ha. with total ML area of ha. In view of the above facts mentioned above and MoEF, GoI guidelines dated , the period of diversion of forest land within the

10 73 leasehold area under this approval should be considered for a period co-terminus with the period of the mining lease already granted and 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 for the RML period, w.e.f (xv) User Agency either himself or through the State Forest Department shall undertake gap planting and soil & moisture conservation activities to restock and rejuvenate the degraded open forests (having crown density less than 0.4), if any, located in the area within 100 m. from outer perimeter of the mining lease; In compliance to the above, the user agency has prepared a scheme of gap planting and soil & moisture conservation measures where it has mentioned that since no degraded open forest is available for gap planting, soil, moisture conservation to restock and rejuvenate the degraded forest land within 100 mts in the outer perimeter of mining lease, the above scheme is not application. The above scheme with such mention has been technically approved by RCCF, Rourkela Circle. The copy of the scheme is enclosed in a separate volume as Annexure IX (xvi) (xvii) The User Agency shall undertake de-silting of the village tanks and other water bodies located within five km from the mine lease boundary so as to mitigate the impact of siltation of such tanks/water bodies, whenever required; As per the para 15 (d) of the interim report submitted by the Central Empowered Committee (CEC) in IA of 2009 in Writ Petition (Civil) 202 of 1995 in the matter of T.N. Godavarman Thirumulpad versus Union of India, duly In compliance to the above, the relevant prepared by the user agency has been technically approved by Regional Chief Conservator of Forests, Rourkela Circle with financial outlay of Rs. 17,48,743 /- at current wage rate of Rs. 150/- per Manday. The copy of the approved scheme is enclosed in a separate volume as Annexure -X In compliance to the above, the user agency has deposited a sum of Rs. 5,49,17,090/- towards NPV of entire forest land of ha with in lease. Details of deposit made in this regard is mentioned at condition 2(viii) above. As reported by the Regional Chief Conservation of Forests, Rourkela Circle, mining lessee was allowed for mining operation in broken DLC land over ha till expiry of original ML i.e. to taking into account the NPV paid for entire forest land and availability of other

11 74 concurred by the hon ble Supreme Court of India vide its order dated the User Agency may be allowed to continue mining as per the approved land-use plan, within the ha. of already broken DLC forest land, after making payment of NPV for entire DLC area included in the mining lease, after deducting NPV already paid if the same has not already been paid, provided the other statutory requirements and Rules are otherwise being complied with; statutory clearances. (xviii) No labour camp shall be established on the forest land; In compliance to the above, the agency has furnished an undertaking which is enclosed as Annexure -XI (xix) The User Agency shall provide firewood preferably alternate fuel to the labourers and the staff working at the site so as to avoid any damage and pressure on the adjacent forest areas; In compliance to the above, it is reported by the user agency regarding supply of oven (Chulla) along with coal 50 Kg per month to each of the 82 Nos of labourers and one cylinder of LPG per month to each 75 no. of staff working at the site with a view to avoid any damage and pressure on the adjacent. Forest area. This may be observed from the compliance furnished by the user agency which is enclosed as Annexure -XII (xx) The boundary of the mining lease and safety zone shall be demarcated on ground at the project cost, by erecting four feet high reinforced cement concrete pillars, each inscribed with its serial number, DGPS coordinates, forward and back bearing, and In compliance of the above, it has been reported that the boundary of mining lease area including Safety Zone has been demarcated on the ground by erecting 4 high RCC pillars, each pillar inscribed with its serial number, DGPS co-ordinates, forward & background bearings & distance from the adjoining pillars. The details of the above information pertaining to safety zone of the lease duly signed by the user agency and countersigned by the DFO, Bonai are enclosed in Annexure XIII and XIII

12 75 (xxi) distance from adjoin pillars etc. The forest land shall not be used for any purpose other than that specified in the proposal; (A) Further, the required DGPS map showing the forest patch in the mining lease area duly verified by ORSAC and authenticated by DFO, Bonai Forest Division is enclosed as Annexure XIII (B) along with soft copy. In compliance to the above, an undertaking submitted by the user agency is enclosed as Annexure XIV. (xxii) The State Government shall complete settlement of rights, in term of the Scheduled Tribes and Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, if any, on the forest land to be diverted and submit the documentary evidence as prescribed by this Ministry in it s letter 11-9/1998-FC (pt.) dated , in support thereof; In compliance to the above, the required Certificate under Scheduled Tribe and Other Traditional Forest Dwellers (Recognition of Forest Right) Act, 2006 issued by Collector, Sundargarh pertaining to the total forest land of ha proposed diversion in respect of Oraghat- Sanindupur Mines of M/s Rungta Sons Pvt. Ltd. Is enclosed as Annexure-XV. The copies of the Gram Sabha resolutions in Odia Languages for Oraghat village dt and for San-indpur village dt along with its English version are enclosed for reference. (xxiii) (xxiv) Any other condition that the Eastern Regional Office of this Ministry, Bhubaneswar and State Government of Orissa may stipulate, from time to time, in the interest of conservation, protection and development of forests & wildlife; and The User Agency and the State Government shall ensure compliance to provisions of the all Acts, Rules, Regulations and Guidelines, for the time being in force, as applicable to the project. In compliance to the above, the user agency has submitted an undertaking for executing any other conditions to be imposed by ERO, MoEF and State Government in the interest of conservation, protection and development of forest and wildlife, which is enclosed as Annexure-XVI. In compliance to the above, the user agency has submitted an undertaking to ensure compliance to provisions of all Acts, Rules regulations and guidelines as applicable to this project, which is enclosed as Annexure-XVII.

13 76 3. Government of Odisha in their said letter dated 23 rd December 2013 further informed that in addition to stipulations imposed by the Government of India, MoEF, the State Government had also imposed the additional conditions. Details of additional conditions stipulated by the State Government and stats of compliance a indicated in the Government of Odisha s said letter dated 23 rd December 2013 are as below: Additional conditions stipulated by the State Govt. 1. The User Agency shall pay towards cost of removal of trees enumerated before commencement of work on stage-ii approval and tree felling should be allowed in phase strictly as per requirement. In compliance to the above, the user agency has submitted an undertaking, which is enclosed as Annexure-XVIII. 2. The User Agency shall pay the proportionate cost of impleemtnation of Comprehensive Wildlife Management Plan prepared for Keonjhar and Bonai forest division as per revised cost norm. 3. Out of ha. of forest land in the ML area ha of forest land is to be maintained as safety zone and in no circumstances, it shall be used for mining and other allied In compliance to the above, the user agency has deposited and amount of Rs. 35, 67, 323/- towards its contribution for implementation of Comprehensive Wildlife Management Plan prepared and approved for Keonjhar-Bonai region as per revised rate of Rs. 43, 000/- per ha. of ML area basis. The above amount has been deposited by the lessee in four phase i.e. Rs. 9,12,571/- vide Bank Draft on dt and Rs. 3,31,844/- vide Bank Draft on dated drawn in favour of Compensatory Afforestation Fund in Account CA-1585 in Corporation Bank, Lodhi Road, New Delhi, Rs4,14,805/- through the RTGS dated drawn in favour of Compensatory Afforestation Fund in Account and Rs. 19,08,103/- through RTGS dated in Union Bank of India, Sunder Nagar, New Delhi The copies Demand Draft and RTGS receipts are enclosed herewith as Annexure XX, XX (A), XX (B) and XX (C) respectively. In compliance to the above, the user agency has submitted an undertaking, which is enclosed as Annexure-XXI.

14 77 activities. 4. The User agency shall pay towards the cost of site specific conservation plan to be approved by CWLW, Odisha for its implementation in leasehold area as well as surrounding area. 5. The User agency shall submit the map of lease area based on DGPS data showing different kinds of forest land to the Divisional Forest Officer, Bonai for his reference. 6. The Tree shall be felled in the ML area Strictly as per requirement of the approved mining plan. In Compliance to the above, a Site Specific Conservation Plan prepared for the mining lease has been approved by the Principal Chief Conservator of Forests(Wildlife) & Chief Wildlife Warden, Odisha with a financial out lay for Rs. 1,23,00,000/-. Out of this approved financial outlay, an amount of Rs. 93,00,000/- has been deposited by the user agency vide bank draft dtd (revalidated on ) for the activities to be implemented by DFO, Bonai division in the project impact area and the user agency has submitted an undertaking for execution of activities to be implemented by the user agency. The above mentioned bank draft bearing dt drawn against Adhoc CAMPA A/C CA 1585 in Corporation Bank, Lodhi Road, New Delhi and undertaking of lessee to undertake activities of Site specific Wildlife conservation Plan within the leasehold area are enclosed as Annexure-XXII, XXII (A) respectively. In Compliance to the above, the user agency has submitted an undertaking, which is enclosed as Annexure-XXIII. In compliance to the above, the user agency has submitted an undertaking, which is enclosed as Annexure-XXIV. 4. Government of Odisha in their said letter dated 23d December 2013 requested this that In view of the above position of compliance to the conditions imposed by the Government of India, MoEF in their Stage-I approval order dt , the Government of India, MoEF is requested to examine the same in the light of guidelines issued vide their letter F /2011-FC dt., regarding simplified procedure for grant of approval in cases of Renewal of Mining leases, for according (i) final approval under F.C Act, 1980 for diversion of ha. of additional forest land including ha safety zone in favour of Oraghat and Sanindupur-Iron Ore mines in Sundargarh district Odisha by M/s Rungta Sons (p) Ltd. during the original Mining lease period which has already expired on and (ii) according final approval for entire forest land of ha. within the ML area of ha. during 1st RML for a period, co-terminus with lease period to be granted by the State Government, not exceeding twenty years w.e.f , on its own merits and convey the same to this department for further follow up action.

15 78 5. This Ministry vide its letter dated 5 th November 2013 informed States/ UTs as below: (i) This Ministry has been receiving representations to stipulate simplified procedure for grant of approval under the Forest (Conservation) Act, 1980 (FC Act) for renewal of mining leases. After careful examination of the matter the following has been observed: (a) Ideally a lessee should seek and obtain approval under the FC Act for diversion of entire forest land located within a mining lease at the time of its renewal. However, it has been observed that in many mines, approval under the FC Act for diversion of forest land has been sought in a piece-meal manner. Lessees in such cases continued to undertake mining in non-forest land or non-forest land plus a part of the forest land for which approval under the FC Act has been obtained. (b) With increased awareness and strict enforcement by Central and State/ Union Territory Governments and various Courts of Law, lessees of these mines submitted proposals for diversion of balance forest land located within such mining leases. This Ministry vide letter /20120 FC dated 1 st February 2013 has also directed the State/ UT Governments to ensure that approval under the FC Act for diversion of entire forest land located within a mining lease shall be obtained within two years (i.e. on or before ). (c) In some of the mining leases, where this Ministry after critical examination of the status of reclamation and surrender of the mined out forest land and ensuring compliance with all existing statues and guidelines, as applicable to such proposals, accorded in-principle approval not long ago before expiry of the mining lease, validity of the mining lease has expired before grant of final approval for diversion of forest land. (d) In such cases adherence to existing procedure involving examination of proposal at several levels in the State/ Union Territory and Central Governments to obtain prior approval of Central Government under the FC Act for renewal of mining lease is not likely to serve any useful purpose as no new facts, significantly different from those observed during examination of the previous proposal, not long ago, are likely to emerge from processing of de-novo proposals. (ii) After careful examination of the matter it has therefore, been decided that in cases, where before submission of a report on compliance to conditions stipulated in the inprinciple approval by the concerned State/Union Territory Government within the stipulated period of five years from the date of grant of in-principle approval, and grant of final approval by the Central Government, validity of the mining expires, instead of submission of a de-novo proposal to obtain approval of Central Government under the FC Act, for such forest land, for renewal of mining lease, the State/ UT Governments while submitting report on compliance to conditions stipulated in the in-principle approval may seek approval of Central Government under the FC Act for diversion of such forest land for (i) original period of the mining lease for which in-principle approval has already been accorded by the Central Government; and also for (ii) renewal of mining lease for a period, as specified by the State/ Union Territory Government, not exceeding twenty years. Report on compliance to a statute(s), circular(s) or directive(s), as applicable to such proposals, which came into force after grant of in-principle approval, if any, shall also be submitted to the Central Government along with the report on compliance to conditions stipulated in the in-principle approval.

16 79 (iii) In such cases, apart from grant of final approval under the FC Act for diversion of such forest land for original period of mining lease, the Central Government, shall, after considering advice of the Forest Advisory Committee or the State Advisory Group, as the case may be, and after such further enquiry as it may consider necessary, grant approval to the proposal of the State/ UT Government for renewal of mining lease for a period, as may be specified by the Central Government, not exceeding twenty years, with appropriate conditions or reject the same. 6. The original proposal seeking prior approval of the Central Government, in terms of the Section-2 of the Forest (Conservation) Act, 1980 for diversion of the said ha. for additional forest land (including ha. for safety zone) for Iron Ore Mining and allied activities in Oraghat Iron Mines of M/s Rungta Sons Private Ltd. under Bonai Forest Division, Sundergarh district of Orissa was submitted by the Government of Odisha vide their letter dated Details indicated in the original proposal submitted by the Government of Odisha vide their letter dated on whose basis the MoEF accorded stage-i approval under the Forest (Conservation) Act, 1980 for diversion of hectares of forest land are as below: FACT SHEET 1. Name of the Proposal Diversion of ha. additional forest land (including ha. for safety zone) for Iron Ore Mining and allied activities in Oraghat Iron Mines of M/s Rungta Sons Private Ltd. under Bonai Forest Division, Sundergarh district of Orissa. 2 Location: State District Orissa. Sundargarh. 3. Particular of Forests (i) Name of Forest Division Bonai Forest Division, (ii) Area of Forest land for Diversion ha. ( including ha. to be diverted for mining ) (iii) Legal Status of Forest land Khesra Forest: 1.28 ha. D.L. C ha. (iv) Density of Vegetation Virgin-0.1 Broken-Less than 0.1 (v) Species-wise and diameter class wise enumeration of trees The applied area is having species like Sal, Karam, Sasi, Asan, Mango, Kendu, Jamu, Kusum, Gambhari, Mahul, Dharua, Char, Bahada etc. Similarly Wild animals such as Mangoose, Rabbit, Barking deer, Percupile, Fox, Jackal, Jungle cat etc are found in the applied area. No rare or endangered flora or fauna is noticed in this area. The density of forest growth over broken up area

17 80 is less than 0.1 where as the forest growth over the virgin forest area is 0.1. The lease area is about 2 KM away from the Mendhamaruni Reserved Forests. As per sample enumeration of trees, 29 Nos. of trees were enumerated over 8.0 Ha. of area (1 Ha. x 8 Nos. of Plot) over the broken up forest area. Thus by extrapolating this figure for the entire broken up area of ha. comes to 115 nos. Similarly, sample enumeration of trees over 8 nos. of sample plots (1.0 Ha. each) in Virgin forest area of h.was taken up and 178 nos. of trees were enumerated over 8.0 Ha. (1 ha. x 8 plots). Hence the extrapolation for the entire virgin forest area comes to 616 no of trees. So, the total nos. of trees in the applied forest area comes to 731 nos. in the ha. forest proposed for diversion for mining. Average tree density in the area proposed for diversion is trees per ha. 4. Vulnerability of area to vegetation 5 Approximate distance of proposed site for diversion from boundary of forest 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) 7. Whether any rare/ endangered/ unique species of flora and fauna found in the area if so, details thereof. 8. Whether any protected archaeological/ heritage site/ defence establishment The forest area is not vulnerable to erosion. The proposed site for diversion is situated at a distance of about 2 KM east of Mendhamaruni R.F.

18 81 or any other important 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 itemwise with details of alternatives examined. 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. 11. Details of Compensatory Afforestation Scheme The requirement of forest land as proposed by the User Agency in Col. 2 of Part-I is unavoidable and barest minimum for the project. There is no violation of Forest Conservation Act, During the subsisting lease period, out of ha. of forest land in the ML area, Government of India, MoEF had earlier accorded final forest clearance for ha. of forest land. In compliance to the stipulations prescribed then, 10.80ha. of non-forest land in village Sansibanathpur in Bonai tehsil was transferred and mutated in favour of Forest Department for compensatory afforestation. The user agency had also earlier paid the cost of compensatory afforestation to the tune of Rs. 1.86lakhs. Out of the remaining forest land of ha. of forest land of the ML area, 4.929ha. is earmarked to be maintained as safety zone and ha. of nonforest land (now DLC land) was broken up for

19 82 mining and other allied activities after prior to Thus for the remaining forest land ha.(64.133ha ha ha.), which happens to be virgin DLC land, compensatory afforestation is required. Therefore ha. of non-forest land, free from encroachment and encumbrances has been identified in village Ruguda under Bonai tehsil of Sundargarh district within the jurisdiction of Rourkela Forest Division for raising Compensatory Afforestation over there. It has been certified that non-forest land identified for compensatory afforestation is suitable for the purpose. It has also been certified that the non-forest land identified for compensatory afforestation are not included in the DLC report of the district. The D.F.O, Rourkela Division has prepared a site specific Compensatory afforestation scheme. According to the scheme, Block plantation will be taken up over the entire area of ha. by 1600 saplings per hectare. The scheme has also provision for soil conservation measures over the entire area and Barbed wire fencing around the plantation sites spread along with maintenance for four years.. The species to be planted are teak, acacia, chakunda, karanja, asan, bahada and simaruba. The total financial outlay of the scheme is Rs.28,34,100/- including cost of infrastructure to be supplied by the User Agency. The Chief Conservator of Forests (Forest Diversion) and Nodal Officer, FC Act has accorded technical approval to this scheme. The User Agency has furnished an undertaking to bear the cost of the scheme. Further, in case the Government of India, MoEF decides to impose compensatory afforestation for ha. of nonforest land(now DLC land) broken up after and prior to declaration of the said as DLC land, the same shall be implemented at project cost. 12. Recommendation

20 83 DFO CF Nodal Officer & Addl. PCCF State Govt. Recommended is public interest. Recommended is public interest. Countersigned. Countersigned. 8. The State Government of Orissa has furnished following additional information in the said letter dated 5 th February 2011: (i) (ii) As per the information furnished by the Government of Orissa and the said user agency, the Oraghat Iron Ore Mine of M/s. Rungta Sons (P) Ltd. is having a mining lease over an area of ha. in the village Oraghat & Sanindpur of Bonai Bub- Division of Sundergarh district. The Mine is being worked for production of Iron ore since The mining lease was granted in favour of the lessee on for 30 years. Initially the mining lease area of ha. was comprised of ha. of Khesra forest and ha. of non-forest land. The user agency had earlier filed a proposal for diversion of ha. of Khasra forest available in the mining lease leaving aside 1.28 ha. of Khesra forest to be maintained as safety zone. The forest clearance was granted to the project by the Ministry of Environment & Forests, Govt. of India vide their letter 8(21)5/2000-FCE, dated for diversion of forest ha. land (K.F.) included within the lease basing on Joint Verification conducted on dtd Since the diversion proposal was processed for clearance prior to the interim Judgement of the Hon ble Supreme Court of India, dtd in writ petition (c) 202/1995, so there was no mention about the deemed forest (DLC Forest) in the proposal at that time. However, after the identification of the deemed forest area, the non-forest land classified as pahad, dungri, etc. were included in the deemed forest category. Thus, out of ha. of non-forest land, ha. has been considered as deemed forest, out which ha. of land was already broken due to mining and other related activities. Since the mining lease is in subsistence till , the modification of the approved diversion proposal in the forest prescribed under F.C. Rules, 2003 is being submitted to seek further approval for diversion of ha. including ha. for safety zone (including 1.28 ha. of khesra forest being maintained as safety zone and hence not diverted earlier). (iii) The total benefit of this proposal comes to Rs lakhs. The loss on forests including environmental loss, cost of Net Present Value and other mandatory payments comes to Rs lakhs. Hence, the cost benefit analysis comes to 1:63; (iv) The User Agency has already obtained environmental clearance for the project from the Government of India, MoEF vide latter s order No J /23/2007-IA.11 (M) dt The public hearing for this project was conducted on , the copy of the proceedings is the proposal; (v) The proposed diversion of the forest land does not involve displacement of any family.

21 84 (vi) The State Government of Orissa has further informed that in the instant forest diversion proposal that involves ha. of additional forest land for mining and other allied activities, the Collector, Sundargarh has furnished the following certificates/documents in respect of the settlement of rights, in accordance with the provisions of the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006: (a) Five number of certificates duly signed by the Collector, Sundargarh (b) Resolution passed by the Palli sabha of Oraghat village of Malda Grampanchayat held on , resolution passed by the palli sabha of Sanindupur village of Malda Grampanchayat on duly signed by the Members present in regional language (c) English version of the resolution of Palli sabha submitted by the Collector, Sundargarh. 9. Finally the State Government of Odisha in their said letter dated 5 th February 2011 recommended diversion of the said forest land subject to following conditions: (i) The User Agency shall pay towards cost of removal of trees enumerated before commencement of work on Stage-II approval and tree felling should be allowed in phases strictly as per requirement. (ii) The User Agency shall furnish an undertaking to abide by the policy decision of State Government issued vide Steel & Mines Department Notification bearing SRO 37/2004 dt (iii) The User Agency shall pay the proportionate cost of implementation of Comprehensive Wildlife Management Plan prepared for Keonjhar and Bonai forest division as per revised cost norm. (iv) Compensatory afforestation if imposed by the Government of India, MOEF for the broken up DLC land of ha. shall be implemented at project cost. (v) Out of ha. of forest land in the ML area, 4.929ha. of forest land is to be maintained as safety zone and in no circumstances, it shall be used for mining and other allied activities. (vi) The user agency shall pay towards the cost of site specific conservation plan to be approved by the CWLW, Orissa for its implementation in leasehold as well as surrounding area. (vii) The user agency shall undertake demarcation of the lease area on the ground posting four feet high cement concrete pillars embedded two feet inside the soil with serial number, forward and backward bearings, and distance from pillar to pillar. The user agency shall also submit the map of lease area showing different kinds of forest land using DGPS survey data and latitude and longitude of each pillar to the Divisional Forest Officer, Bonai for his reference before commencement of work on final forest clearance.

22 85 (viii) The trees shall be felled in the ML area strictly as per requirement of the approved mining Plan. 10. The matter is placed before the proposal Forest Advisory Committee for its consideration and appropriate recommendations. ******