The National Aluminum Company Ltd (NALCO) has obtained the final forest clearance permit for bauxite mining in the Indian state of Orissa. The renewal of its bauxite mining lease for the Panchpatmali South Block in Koraput district of Orissa for 20 more years required the diversion of 110.3 hectares of forest land.
The original mining lease was for a period of 30 years in the area. The approval will now allow NALCO to continue with various expansion projects in the area which will in turn help improve the production capacity of the company.
The forest approval needed to come from the Center and the Orissa government had applied for the same in accordance with the Forest Conservation Act of 1980. The Ministry of Environment and Forests considered the proposal of the Forest Advisory Committee constituted by the central government before giving approval for the diversion subject to some conditions being fulfilled.
These include that the company has to take up certain measures along with the Orissa government for afforestation on degraded forest land and prepare a plan to wean away the practitioners of ecologically destructive jhum cultivation (slash and burn agriculture) in the vicinity of the forest land being diverted, as well as provide funds for its implementation.
NALCO was trading with volumes of 604,530 shares, compared to its 5-day average of 245,411 shares, an increase of 146.33%. The shares of the company closed up 0.43% or Rs 0.35 at Rs 80.95.