F. No. 8-16/2016-FC Sub:

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1 F. No. 8-16/2016-FC Sub: Diversion of ha of Sabik Kisam forest land as on within total mining lease area of ha for chromite mining in their Sukinda Chromite Mines within village of Kaliapani under Sukinda Tahasil of Jajpur district, Odisha by M/s IMFA Ltd. in Jajpur District, Odisha. 1. The above stated proposal was discussed in the Advisory Committee (FAC) meeting held on FAC after detail deliberation and discussion with the user agency FAC observed that the. 2. The State Government of Odisha, Department of Environment, Forests & Climate Change, vide his letter No. 10F(Cons) 183/ /F&E dated for seeking prior approval under Forest (Conservation) Act, 1980 for diversion of ha of Sabik Kisam forest land as on within total mining lease area of ha for chromite mining in their Sukinda Chromite Mines within village of Kalipani under Sukinda Tahasil of Jajpur district, Odisha by M/s IMFA Ltd. in Jajpur district, Odisha. 3. The project is located in Cuttuck forest division of Jajpur District of Odisha. 4. It is reported by the State Govt. that the mining lease of chromite ore over an area of ha was granted to M/s IMFA Ltd. by the Steel & Mines Department in village Kalarangiatta, Ransol of Sukinda Tahasil of Jajpur district, Odisha for a period of 30 years vide their Proceedings No dated Later the ML area was reduced to ha. after some corrections made in the survey documents and accordingly Proceedings bearing No dt was issued by Steel & Mines Department. 6. At the time of grant of this mining lease, entire Ha. area was treated as non-forest and as per Hal settlement record. 7. As per the above grant of mining lease, the relevant Mining lease deed with respect to ha. was duly executed between M/s IMFA Ltd. and Collector, Jajpur on with validity of lease for a period of 30 years for exploitation of Chromite Ore and its captive consumption in its own Ferro Alloys Plants at Choudwar of Cuttack District and at Therubali of Rayagada District, Odisha. 8. Dy. Director Mines, Jajpur vide his letter No dated allowed surface operation permission over ha. and thereafter the Collector Jajpur vide his letter No. 496 dt issued surface right permission over ha. in respect of mining lease hold of Sukinda Mines (Chromite) of M/s IMFA Ltd. and mining operation in the lease hold area was reportedly started in September 1999 and is still continuing. 9. Pursuant to MoEF&CC guidelines bearing No. 8-78/1996-FC(pt.) dated , out of the total ML area of ha. which was non-forest land as per Hal record, was found to be having ha. of sabik kisam forest land as on and remaining 1.71 ha. of non-forest land. 10. Land schedule of mining lease in Hal as well as Sabik record as on has been duly authenticated by Tahasildar, Sukinda. Accordingly, the user agency has submitted this proposal for sabik kisam forest land of ha. for obtaining approval under FC Act, The Mining lease hold area of Sukinda Chromite Mines of M/s IMFA Ltd. falls within the Revenue village of Kaliapani in Sukinda Tahasil of Jajpur District over an area of ha. 12. The proposed lease area does not fall within any National Park/Wildlife Sanctuary/Biosphere Reserve/Elephant Corridor/Tiger Reserve. 13. No archaeological monument or protected defense establishment is located inside the applied area. 14. The applied area comes within a distance of 8.54 km from the proposed Tiger Corridor in Daitary DPF of Sukinda Range of Cuttack Division. Project area is adjoining to Mahagiri DPF and is about 2.5 km distance from Daitari DPF. 15. This project is generating employment opportunity for 784 persons including skilled, semiskilled, un-skilled, supervisory staff and Executive. Nearly 5000 persons of the locality are being benefited directly and indirectly with operation of this mining project. 16. The total cost of the project is Rs lakhs. 17. The project does not involve displacement of human habitation.

2 18. Forest Land: The proposed land use pattern as furnished by the user agency is indicated below: SI. No Gr. Total (in Ha.) Forest (in Ha.) Non-Forest (in Ha.) Purpose Govt Pvt Total Govt Pvt Total 1 Mining &Mineral storage Dumping of 2 Overburden &sub grade ore Infrastructureconstruction of Admin building, power station, workshop, ETP, Settling etc. pond, 0 pipeline, etc COB Plant Township/Housing Colony Construction of Road Magazine Safety Zone Total As per Site Inspection Report of DFO, Cuttack Forest Division and RCCF, Angul, dry deciduous forest growth with sporadic vegetation is found in the area. 20. The floral species like Sal (Shorea robusta), Sisoo (Dalbergia sisoo), Piasal (Pterocarpus marsupium), Kangada(Xylia xylocarpa) etc. are found in and around the M.L area. 21. As reported by RCCF, Angel in his site inspection report, the faunal species noticed in the area includes Spotted Deer, Wild boar, Wild lizard, Peacock, Jungle fowl, Fox, Barking Deer, Monkey, Porcupine, Jackal, Mongoose, Ratel, Hare, Indian Cobra, Python, Common India Kraft, Ring Dove, Sloth Bear, Parakeets, Koel, Pangolin, Hyena etc. Movement of elephants in the nearby forest area has also been recorded. Schedule I species like Pangolin, Python, Ratel, Sloth bear are also seen in the area. 22. As reported by DFO, Cuttack, the entire applied forest area in the M.L area has been broken up in course of mining during the existing mining lease period. However, 2530 numbers of trees of different species above 30 cm girth and 1350 numbers of poles under 30c.m girth have been enumerated in the proposed area. 23. It is reported that the M.L area of Sukinda Chromite Mines of M/s IMFA Ltd. does not form part of any National Park/Wildlife Sanctuary/Elephant corridor. However, due care is to be taken for conservation of wildlife available in the area. The User Agency is therefore required to contribute proportionate contribution towards implementation of Regional Wildlife Management Plan revised 43,000/- per ha. over the lease hold area of ha.

3 24. As reported by PCCF, Odisha, an amount of Rs. 30,35,760/- so far been deposited by the user agency towards proportionate cost of Regional Wildlife Management Plan in two phases i.e. Rs.23,35,200/- on and Rs.7,00,560/- on in Adhoc-CAMPA Account at pre-revised rate. Therefore, the user agency is required to deposit the differential cost of Regional Wildlife Management Plan for this mining project. 25. In addition to contributing towards Regional Wildlife Management Plan, a Site specific wildlife Conservation Plan duly approved by CWLW, Odisha is required to be executed in the mining as well as mining impact area at project cost. 26. As reported, the Site Specific Wildlife Conservation Plan for this mining project has been duly approved by the Principal Chief Conservator of Forests, and Chief Wildlife Warden, Odisha with a total financial outlay of Rs akhs. This includes Rs lakhfor executing activities to be implemented by the DFO, Cuttack Forest Division (Rs.Rs lakhs) and the DFO, Dhenkanal Division (Rs lakhs) in the project impact area and Rs lakhs towards executing the cost of approved components of works by user agency within the project area.an amount of Rs.2,57,00,000/- is therefore required to be deposited by the user agency towards cost of executing of approved components of works in project impact area in Adhoc- CAMPA Account. 27. Out of ha. of sabik kisam forest land proposed for diversion under this proposal, 3.66 ha. of sabik forest land to be maintained as Safety zone. Hence ha (115.05ha minus 3.66 ha.) is being used for non-forest purposes. 28. In lieu of ha. of sabik kisam forest land proposed to be used for mining and other allied activities, equivalent extent of non-forest Government land has been identified by the district Administration of Jajpur for the purpose of raising Compensatory Afforestation in two patches of village Anjira i.e. Patch I ( ha.) and Patch I1 ( ha.) and one patch of village Panturi ( ha.) under Dharmasala Tehsil of Jajpur district. 29. The Compensatory Afforestation area has been jointly verified by Forest and Revenue Department officials. The land schedule for the Non-forest land identified in village Anjira is indicated below. Tehsil Village Khata No. Plot No. Area in ac. Kisam Dharmasala Anjira (p) Pahada (Abada Jogya Anabadi Pahada Total acres or ha. The land schedule for the Non-forest land identified in village Panaturi is indicated below. Tehsil. Village Khata No. Plot No. Area in ac. Kisam Dharmasala Panturi 212(Abada 368 (p) 7.42 Parbata-3 Ajogya 369(p) Parbata-3 Anabadi 370(p) Parbata-3 371(p) Parbata-3 Total 372(p) Parbata acres or ha.

4 30. The land suitability certificate of DEO, Cuttack, non-encroachment, and non-encumbrance certificate issued by the Tahasildar, Dharrnasala in iajpur District have been furnished. 31. Two separate Compensatory Afforestation Schemes in Bald-hill plantation in block mode have been prepared by DFO, Cuttack i.e. (i) over ha in Anjira village with a total financial forecast of current wage rate of Rs. 200/- per man-day with maintenance cost of 10 years and (ii) over ha. in Panturi village with a total financial forecast of current wage rate of Rs. 200/- per manday with maintenance cost of 10 years. 32. The species selected to be planted under the scheme are Amla (Emblica officinalis), Neem (Azadirachta indica), Bahada (Terminalia belerica), Karanja (Pongamia pinnata), Jamu (Syzyzium cumini), Asan (Terminalia tomentosa), Arjuna (Terminalia tomentosa), Mango (Mangifera indica), Teak (Tectona grindis), Mahul (Madhuca indica), Gamhhar (Gmelina arborea) etc. The Addl. Pr.CCF (Forest Diversion) & Nodal Officer, FC Act has accorded technical approval to both the CA schemes. 33. The user agency has furnished an undertaking to pay cost of compensatory afforestation 34. Suitability Certificate of CA is given. 35. Cost Benefit Analysis: 1: Safety Zone: It is submitted by the User Agency in part I of the application that Sukinda Chromite mining lease of M/s IMFA Ltd. was earlier operated by M/s TATA Steel Ltd. Thus it is a retrenched part of earlier mining lease area of M/s TATA Steel. Before this lease was granted to IMFA Ltd, the lease area was already broken up to the lease boundaries for different mining activities like quarry, overburden dump, mineral storage, drainage, roads etc. Further it has been submitted that mining and dumping was also carried out within 7.5 meter of common lease boundary along C-D & A-B-C line respectively with adjacent leases. The mining activities are being carried out as per mining plan/ schemes duly approved by IBM and as per guidelines laid down by Directorate General Mines Safety (DGMS). User agency has further submitted that no provision for safety zone has been kept in the land use pattern previously as the ML area was being used as non-forest lease entirely. 37. In view of guidelines of Govt. of India, MoEF&CC dated , ha. of the ML area was found to be sabik kisam forest land and 1.71 ha. as non-forest land as on for which safety zone is required to be maintained as per para 4.7 of FC Act guidelines. 38. It has been reported that Sukinda chromite Mines of M/s IMFA Ltd. is located within cluster of mines such as lease of Kaliapani Chromite Mines of M/s Balasore Alloys Ltd. on the western side, Kaliapani Chromite Mines of M/s OMC Ltd. on northern side and Mahagiri Chromite Mines of M/s IMFA Ltd. to the south respectively. 39. It is Therefore reported by the government of Odisha that maintaining safety zone having a width of 7.5 mt all along the lease boundary within this leasehold area is not possible. 40. In order to maintain total safety zone area of the project i.e ha. (calculated/computed taking into consideration of total length of lease boundary multiplied by 7.5 meter), two sides/patches within the mining lease area along the part of Northern side (3.703 ha.) and southern side (0.435 ha.) of the lease boundary have been earmarked. 41. This area of ha.earmarked for safety zone comprises of forest land 3.66 ha. and non-forest land ha. This has been shown in the proposed land use pattern in the instant diversion proposal. 42. It is reported that 1.5 times of forest area in safety zone is also required to be afforested and maintained at the cost in degraded forest land elsewhere. 43. Environmental Clearance: The Ministry of Environmental and Forest vide their letter No. J /346/2007-1A.II(M) dt had accorded Environment Clearance for this project for production of annual capacity of MTPA(ROM) in opencast to opencast mechanized method in lease area of ha. up tomarch, 2012.

5 44. Further MoEF&CC vide their letter No. 3-1 l0 15/346/2007-IA-II(M) dt had extended the validity of above environmental clearance up to Further MoEF&CC vide their letter J110 15/346/2007-IA-II(M) dt , have prescribed Terms of Reference(ToR) for enhancement of production from MTPA to 0.6 MTPA and change in mining method from Open cast to Opencast & underground and establishing 40 TPH feed chrome beneficiation plant. 46. The State Pollution Control Board, Odisha had accorded Consent to Establish (CTE) vide their letter No dated , which was then valid for five years. 47. Thereafter SPCB, Odisha has also accorded Consent to Operate (CTO) in favour of the project vide their order dt which is valid upto The Reclamation and afforestation scheme and biological reclamation for this Mining project has not been provided by the user agency. It is requested by the state government that this is required to be submitted by the lessee and implemented at their cost. 49. The project does not involve displacement of human habitation. 50. The Scheme of Mining including Progressive Mine Closure Plan of Sukinda ChromiteMines over ha. of M/s IMFA Limited in Jajpur Dist. has been approved by IBM letter No.314(3)/2012- MCCM(CZ)/MS-56 dated It is reported by the lessee that, the Mining lease has estimated mineral reserve of akh tonnes and mineable reserve of lakhs tonne No violation has been reported in the project area as per the Site Inspection Report of the DFO, Cuttack Forest Division and RCCF, Angul. 53. Net Present Value is applicable to this project. As per stipulation of MoEF & CC guidelines vide F. No.8-78/1996-FC (pt.) dated l , lessee has deposited an amount of Rs.8,39,86,500/- towards NPV for ha. of forest land (as per Sabik record) in AdhocCANIPA Account 54. As per MoEF&CC guidelines dt and subsequent guidelines issued thereafter, the certificate in prescribed format for entire land of the ML area including sabik kisam forest land of ha. of Collector, Jajpur along with copy of Gram sabha resolution dt of village Kaliapani have been furnished. 55. Copy of Gram sabha resolutions are without signatures of all the members present. Also English version of gram sabha resolution has not been furnished. In view of the above, the State Govt.of Odisha is requested to examine this proposal for diversion ha. of sabik Icam forest land as on within total mining lease area of ha. for chromite mining in their Sukinda Chromite Mines within village of Kaliapani under Sukinda Tahasil, Odisha. 56. The forest area is in Eco Class I, and vegetation density is below 0.4 (Canopy Coverage). 57. The proposed area is not vulnerable to erosion and do not form a part of severely eroded area. 58. It is reported that the requirement of forest land as proposed by the User Agency is unavoidable and bare minimum for the project. 59. The project is recommended by DFO,RCCF,PCCF and State government. 60. The regional office had carried out Site Inspection. The report of regional office is reproduced as under : The site inspection of the above project was carried out by CF(Central), RO, Bhubaneswar from to along with Shri Sudarshan Patra, DFO, Cuttack Division, Shri S. Sahoo, Ranger Officer, Sukinda range, Shri Dilip Singh, Range officer, Dalijoda range, Shri Sanjeev Das, Sr. Vice President, Head-Mining Business Unit, Shri P. Behera, Vice President (Mines) and Sri S. Patni, Sr. GM (Mines) of M/s IMFA.The details of SIR are as follows: 1. Legal status of the forest land proposed for diversion: The legal status of Forest is Revenue Forest. 2. Item-wise break-up details of the forest land proposed for diversion.

6 S1. Forest (in Ha.) Non-Forest (in Ha.) Gr. Total Govt. Pvt. Total Govt. Pvt. Total (in No Purpose Ha.) 1 2 Mining & Mineral storage Dumping of Overburden & sub grade ore Infrastructureconstruction of Admin building, power station, workshop, etc ETP, Settling pond, pipeline, etc COB Plant Township/Housing Colony Construction of Road Magazine Safety Zone Total Whether proposal involves any construction of buildings (including residential) or not. If yes, details thereof: As reported at Point No.2 above. 4. Total cost of the project at present rates: The total cost of the project is Rs lakhs. 5. Wildlife: As reported by RCCF, Angul in his site inspection report, the faunal species noticed in the area includes Spotted Deer, Wild boar, Wild lizard, Peacock, Jungle fowl, Fox, Barking Deer, Monkey, Porcupine, Jackal, Mongoose, Ratel, Hare, Indian Cobra, Python, Common India Krait, Ring Dove, Sloth Bear, Parakeets, Koel, Pangolin, Hyena etc. Movement of elephants in the nearby forest area has also been recorded. Schedule I species like Pangolin, Python, Ratel, Sloth bear are also seen in the area. However, during my site inspection none of these could be noticed. Whether forest area proposed for diversion is important from wildlife point of view or not:

7 The M.L area of Sukinda Chromite Mines of M/s IMFA Ltd. does not form part of any National Park/Wildlife Sanctuary/Elephant corridor. However, due care is to be taken for conservation of wildlife reportedly available in the area. The User Agency is therefore required to contribute proportionate contribution towards implementation of Regional Wildlife Management Plan at revised rate Rs. 43,000/- per ha over the lease hold area of ha. As reported by PCCF, Odisha, an amount of Rs. 30,35,760/- has so far been deposited by the user agency towards proportionate cost of Regional Wildlife Management Plan in two phases i.e. Rs.23,35,200/- on and Rs.7,00,560/- on in Adhoc-CAMPA Account at pre-revised rate. Therefore the user agency is required to deposit the differential cost of Regional Wildlife Management Plan for this mining project. In addition to contributing towards Regional Wildlife Management Plan, a Site specific wildlife Conservation Plan duly approved by CWLW, Odisha is required to be executed in the mining as well as mining impact area at project cost. As reported, the Site Specific Wildlife Conservation Plan for this mining project has been duly approved by the Principal Chief Conservator of Forests, and Chief Wildlife Warden, Odisha with a total financial outlay of Rs Lakhs. This includes Rs lakhs for executing activities to be implemented by the DFO, Cuttack Forest Division (Rs lakhs) and the DFO, Dhenkanal Division (Rs lakhs) in the project impact area and Rs lakhs towards executing the cost of approved components of works by user agency within the project area. An amount of Rs. 2,57,00,000/- is therefore required to be deposited by the user agency towards cost of executing of approved components of works in project impact area in Adhoc-CAMPA Account. The User agency has reported that they have deposited Rs Lakhs (Rupees Two hundred fifty seven lakhs) only towards approved cost of duly approved Site Specific Wild Life Conservation Plan with Adhoc-CAMPA account through RTGS mode vide UTR No. SBIN , dated for execution of activities by DFO, Cuttack Forest division & DFO, Dhenkanal Forest division in the project impact area in respect of Sukinda Mines (Chromite) Mines of M/s IMFA Ltd. The User agency has also reported that they have deposited Rs. 19,84,920/- (Rupees Nineteen Lakh eighty four thousand nine hundred twenty) only towards differential cost of proportionate contribution towards implementation of Regional Wildlife Management Plan at revised rate of Rs. 43,000/- with Ad-hoc CAMPA account through RTGS mode vide UTR No. SBIN , dated in respect of Sukinda Mines (Chromite) Mines of M/s IMFA Ltd. As reported by DFO, Cuttack Forest Division, the applied area comes within a distance of 8.54 km from the proposed Tiger Corridor in Daitary DPF of Sukinda Range of Cuttack Division. Project area is adjoining Mahagiri DPF and is about 2.5 km distance from Daitari DPF. 6. Vegetation: The density of vegetation is reported by the State Government to be below 0.4 (Eco class I). However, during my site inspection, it was observed that the entire area has been broken. a) Total number of trees to be felled. The entire applied forest area in the M.L area has been broken up in course of mining during the existing mining lease period. However, as reported by the State Government, 2530 numbers of trees of different species above 30cm girth and 1350 numbers of poles under 30cm girth have been enumerated in the proposed area. b Effect of removal of trees on the general ecosystem in the area: As there is a large number of trees to be felled, it will naturally adversely affect the general ecosystem in the area. Important species: As per Site Inspection Report of DFO, Cuttack Forest Division and RCCF, Angul,

8 dry deciduous forest growth with sporadic vegetation is found in the area. The floral species like Sal (Shorea robusta), Sisoo (Dalbergia sisoo), Piasal (Pterocarpus marsupium), Kangada (Xylia xylocarpa) etc. are found in and around the M.L area. Number of trees of girth below 60 cm. The number of trees of girth below 60 cm. is 1934 (excluding 1350 no. of poles). Number of trees of girth above 60 cm The number of trees of girth above 60 cm. is Background note on the proposal: On the application of M/s IMFA Ltd. dt for grant of a mining lease, terms and conditions were issued by the Steel & Mines Department vide their letter No. 3921/SM dt for acceptance of user agency prior to grant of mining lease of chromite ore over an area of ha in village Kalarangiatta, Ransol of Sukinda Tahasil of Jajpur district, Odisha. After the user agency accepted the terms and conditions, State Government in Steel & Mines Department granted a Mining lease for Chromite over an area of ha in village Kalarangiatta under Sukinda Tehsil of Jajpur District for a period of 30 years vide their Proceedings No dt Later the ML area was reduced to 1l6.760 ha after some corrections made in the survey documents and accordingly Proceedings bearing No dt was issued by Steel & Mines Department. At the time of grant of this mining lease, entire ha area was treated as non-forest land as per Hal settlement record. As per the above grant of mining lease, the relevant Mining lease deed with respect to ha was duly executed between M/s IMFA Ltd. and Collector, Jajpur on with validity of lease for a period of 30 years for exploitation of Chromite Ore and its captive consumption in its own Ferro Alloys Plants at Choudwar of Cuttack District and at Therubali of Rayagada District, Odisha. Dy. Director Mines, Jajpur Road circle vide his letter No dt allowed surface operation permission over hects and thereafter the Collector Jajpur vide his letter No. 496 dt issued surface right permission over ha in respect of mining lease hold of Sukinda Mines (Chromite) of M/s IMFA Ltd. and mining operation in the lease hold area was reportedly started in September 1999 and is still continuing. Pursuant to MoEF&CC guidelines bearing No. 8-78/1996-FC (pt.) dt , out of the total ML area of ha which was non-forest land as per Hal record, was found to be having ha of sabik kisam forest land as on and remaining 1.71 ha of non-forest land. The user agency has now filed forest diversion proposal for this sabik kisam forest land of ha which is now under process for obtaining approval of MoEF&CC, Government of India under FC Act, The Mining leasehold area of Sukinda Chromite Mines of M/s IMFA Ltd. falls within the Revenue village of Kaliapani in Sukinda Tahasil of Jajpur District over an area of ha. The topographical location of Sukinda Chromite Mines falls in Survey of India Topo sheet No F45N/16 (Earlier 73G/16) and is bounded by Latitude to North and Longitude to 85 o East. Scheme of mining with Progressive Mines Closure Plan has been approved by IBM in letter No. 314(3)/2012-MCCM(CZ)/MS-56 dated No archaeological monument or protected defence establishment is located inside the applied area. 8. Compensatory afforestation: ha of sabik kisam forest land is proposed for diversion under this proposal that includes 3.66 ha of sabik forest land to be maintained as Safety zone. Hence ha ( ha 3.66

9 ha) is being used for non-forest purposes. In lieu of ha of sabik kisam forest land proposed to be used for mining and other allied activities, equivalent extent of non-forest Government land has been identified by the district Administration of Jajpur for the purpose of raising Compensatory Afforestation in two patches of village Anjira i.e. Patch I ( ha) and Patch II ( ha) and one patch of village Panturi ( ha) under Dharmasala Tehsil of Jajpur district. The land schedule for the Non-forest land identified in village Anjira is indicated below. Tehsil Village Khata No. Plot No. Area in ac. Kisam Dharmasala Anjira 1729 (Abada Jogya Anabadi) Total 5874 (p) Pahada Pahada acres or ha. The land schedule for the Non-forest land identified in village Panturi is indicated below: Tehsil Village Khata No. Plot No. Area in ac. Kisam Dharmasala Panturi 212 (Abada 368 (p) 7.42 Parbata-3 Jogya 369(p) Parbata-3 Anabadi) 370(p) Parbata-3 371(p) Parbata-3 372(p) Parbata-3 Total acres or ha. The species selected to be planted under the scheme are Amla (Emblica officinalis), Neem (Azadirachta indica), Bahada (Terminalia belerica), Karanja (Pongamia pinnata), Jamu (Sizium cumini), Asan (Terminalia tomentosa), Arjun (Terminalia tomentosa), Mango (Mangifera indica), Teak (Tectona grandis), Mahul (Madhuca indica), Gambhar (Gmelina arborea) etc. The Addl. Pr.CCF (Forest Diversion) & Nodal Officer, FC Act has accorded technical approval to both the CA schemes. The user agency has furnished an undertaking to pay cost of compensatory afforestation. I have visited all the 3 patches of the C.A. sites, 02 at Anjira and 01 at Panturi villages. All the patches are having scrub forests. Block 2500 seedlings per ha is to be raised in all the patches of Anjira village and 1600 seedlings per ha in Panturi village. As discussed with DFO, there is a proposal of two fencing for the bald hill plantation one dry fencing and another green fencing. The nearest forest office is at Garhamadhupur section and beat office which is about 15 kms. from the site in case of Anjira village and 5 kms. in case of Panturi village. The nearest RF are Nischinta RF which is at about 15 km and Balrampur PRF which is at about 9 km from the C.A. site at village Anjira and about 3 kms. from C.A. site at village Panturi. There will be involvement of the villagers nearby for the plantation work as stated by DFO, Cuttack division.

10 a) Whether land for compensatory afforestation is suitable from plantation and management point of view or not: The land suitability certificate issued by of DFO, Cuttack division is given. b) Whether land for compensatory afforestation is free from encroachment/other encumbrances: Non-encroachment and non-encumbrance certificate issued by the Tahasildar, Dharmasala in Jajpur District is enclosed as Annexure-V.: c) Whether land for compensatory afforestation is important from Religious/Archaeological point of view Not reported. d) Land identified for raising compensatory afforestation is in how many patches, whether patches are compact or not: 03 (Three) compact patches. e) Map with details: Enclosed as Annexure-III. f) Total financial outlay: Two separate C.A. schemes in Bald-hill plantation in block mode have been prepared by DFO, Cuttack i.e. (i) over ha in Anjira village with a total financial forecast of current wage rate of Rs. 200/- per manday with maintenance cost of 10 years and (ii) over ha in Panturi village with a total financial forecast of current wage rate of Rs. 200/- per manday with maintenance cost of 10 years. 9. 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: No violation has been reported in the project area as per the Site Inspection Report of the DFO, Cuttack Forest Division and RCCF, Angul. 10. Whether proposal involves rehabilitation of displaced persons. If yes, whether rehabilitation plan has been prepared by the State Government or not : The project does not involve displacement of human habitation. Hence R&R Plan is not necessary. 11. Reclamation plan: The Reclamation and afforestation scheme and biological reclamation for this Mining project has not been provided by the user agency. However, they have submitted a phased-reclamation plan which is enclosed as Annexure-VI. Area-wise full details on reclamation along with expenditure have not been provided. Details and financial allocation: Not submitted. 12. Details on catchment and command area under the project: Not applicable. Catchment area treatment plan to prevent siltation of reservoir: Not applicable. 13. Cost benefit ratio: As reported, the total benefit of this project comes to Rs Crores. The loss on forest including environmental loss, N.P.V cost and other mandatory payment like proportionate cost of wildlife management plan, Compensatory Afforestation cost comes to Rs Crores. Hence, the Cost Benefit Ratio is reported to be 1:73.

11 14. Recommendations of the Principal Chief Conservator of Forests/State Government: Recommended by PCCF, Odisha and State Government. 15. Recommendations of Additional Principal Chief Conservator of Forests (Central) along with detailed reasons: Appended separately. 16. Conservator of Forests (Central) shall give detailed comments on whether there are any alternative routes/alignment for locating the project on the non-forest land: The mining project is site specific; hence alternative alignment is not possible. 17. Utility of the project: This project is generating employment opportunity for 784 persons including skilled, semiskilled, un-skilled, supervisory staff and Executive. Nearly 5000 persons of the locality are being benefited directly and indirectly with operation of this mining project. Numbers of Scheduled Caste/Scheduled Tribes to be benefited by the project: Not reported. 18. a) Whether land being diverted has any socio-cultural/ religious value: Not reported. b) Whether any sacred grove or very old growth trees/forests exist in the areas proposed for diversion: Not reported. c) Whether the land under diversion forms part of any unique eco-system: Not reported. 19. Situation with respect to any Protected Area: The nearest Protected Area is reported to be Kapilas WL sanctuary which is at a distance of about 40 km from the project site. 20. Any other information relating to the project: I. Copies of DGPS & Topo-sheet, submitted by the User agency, are enclosed as Annexure- I & II. II. III. IV. The State Government has reported that FRA Certificate has been furnished along with a copy of Gram Sabha resolution dated of village Kaliapani, without signatures of all the members present in the Gram Sabha. Moreover, an English version of Gram Sabha resolution was also not furnished. However, the User agency has submitted a copy of the entire proceedings of the Gram Sabha resolution with signatures of all members at the time of my site inspection. FRA Certificate issued by Collector & District Magistrate, Jajpur along with proceedings of Gram Sabha resolution is enclosed as Annexure-IV. A copy of the DSS report of 3 patches of C.A. site is enclosed as Annexure-VII. V. The following additional observations have been made during my site inspection: a) Safety zone has been demarcated with pillars over 3.66 ha of forest land with northern side having common boundary with M/s OMC Ltd and southern side having common boundary with Mahagiri Mines of M/s IMFA.

12 b) Boundary of lease has been demarcated with pillars. c) A botanical garden has been developed in the northern side of the lease inside the boundary. d) An ETP has been constructed in the northwest corner of the lease. This has been constructed with the purpose of converting hexavalent chromium to trivalent chromium before discharge of water to Damshala Nalla. 21. Additional PCCF (Central), RO Bhubaneswar recommended the proposal. 22. Recommendation of FAC: FAC recommended the proposal for clearance under Forest (Conservation) Act 1980 with general, standard and following specific conditions i. The User agency shall pay NPV at the rate 20 per cent for each year since the violation of Forest (Conservation) Act 1980 has commenced ii. User agency shall raise penal CA equivalent to the land utilised in violation of the provision of Forest (Conservation) Act 1980 iii. No mining shall be carried out in the land required to be maintained as safety zone all around the mining area. 23. However FAC further observed that the proposal file shall be put before the competent authority after receipt of following documents from the state. 1. Complete compliance of FRA certificate as per the latest guidelines issued by the Ministry. 24. The Government of Odisha vide their letter no. 10F (Cons) 183/ /F&E dated (Pg /c ) intimated that Addl. PCCF (Forest Diversion) and Nodal Officer, FCA has furnished the present status of compliance of all conditions (Pg. 9/c) as stipulated while forwarding the instant proposal vide letter dated With regard to FRA, the State Government was earlier reported that FRA Certificate has been furnished along with a copy of Gram Sabha resolution dated of village Kaliapani, without signatures of all the members present in the Gram Sabha (pg /c). Moreover, an English version of Gram Sabha resolution was also not furnished and FRA Certificate issued by Collector & District Magistrate, Jajpur along with proceedings of Gram Sabha resolution was given and placed in file at pg /c. It has now been stated the gram sabha resolution dated of Kaliapani village in Odia language with signature of all members present certified by competent authority has been enclosed alongwith English version (Pg.664/c& /c). 25. Taking in to consideration the recommendation of FAC as mentioned in para (22&23) above and compliance with regard to FRA as mentioned in para 24 above, the proposal was submitted for the approval of competent authority subject to certain conditions including following specific conditions as detailed below:- (i) (ii) The User agency shall pay NPV at the rate 20 per cent for each year since the violation of Forest (Conservation) Act 1980 has commenced; User agency shall raise penal CA equivalent to the land utilised in violation of the provision of Forest (Conservation) Act 1980;

13 26. Accordingly, the in-principle approval for the above subject proposal was granted vide this Ministry s letter dated subject to certain conditions which includes the above two stated conditions in the order at S. No. (xi) and (xii). 27. Now the State Government of Odisha vide their letter No. 10F(Cons) 183/ /F&E dated (Pg /c) has forwarded a representation dated (Pg /c) of user agency whereby the user agency stated that it was not their fault since the user agency signed the lease deed as per land records certified by the Government of Odisha. Further, the Government of Odisha discovered the sabik forest records and intimated to the user agency first time in 2006, which was also erroneous. Subsequent to the directives of MoEF in 2013, the Government of Odisha came up with another data of land schedules based on sabik records on 12th December, 2014 and requested that the clauses ix and x of Stage-I clearance for Sukinda Chromite Mines may be withdrawn because penal NPV should not be charged from the user agency as the period of violation if at all, is not on account of the user agency. With the same logic penal compensatory afforestation is also not applicable because the user agency has acted in good faith based on the land schedules submitted by the Government of Odisha. 28. The State Govt. of Odisha also mentioned that this diversion proposal vide its letter dated , the State Government had indicated clearly that pursuant to MoEF&CC s guidelines bearing No. 8-78/1996-FC(pt.) dt , out of the total ML area of ha. which was non-forest land as per Hal record, was found to be having ha. of sabik kisam forest land as on and remaining 1.71 ha. of non-forest land. It was also reported then that at the time of grant of this mining lease, entire ha. area was treated as non-forest land as per Hal settlement record. As per the above grant of mining lease, the relevant Mining lease deed with respect to ha. was duly executed between M/s IMFA Ltd. and Collector, Jajpur on with validity of lease for a period of 30 years for exploitation of Chromite Ore and its captive consumption in its own Ferro Alloys Plants at Choudwar of Cuttack District and at Therubali of Rayagada District, Odisha. In view of this, State Government, based on the report of field forest Officers, had not reported any violation in this mining lease. Moreover, the user agency in its instant representation has indicated that ML area of ha. was part of leased out land granted earlier to M/s TISCO since At the time of grant of ML area in favour of M/s IMFA Ltd in 1999, ha. of land was already broken by the previous lessee possibly prior to In view of above, the representation dated of user agency seeking deletion of condition No. 2(ix) and 2(x) of Stage-I orders imposing penal measures in this proposal by the Ministry has been submitted by the State Govt. for consideration of this Ministry. The above facts for review of penalty conditions as stated in para (1) above may be placed before FAC in its meeting to be held on for examination and appropriate recommendation please. ****