Nalco to surrender 2,100 hectare excess mining land
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29/03/2013
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Business Standard (New Delhi)
In 2002, the company had surrendered 1,288 hectare as it did not find bauxite deposit in those areas, out of original 4,692 ha land allotted to it
National Aluminium Company (Nalco) expects its partial surrender of mining land at its key Panchpatmali (north central block) bauxite deposit will soon be cleared by the state mines department.
Nalco intends to surrender 2,087 ha of its 3,404 ha mining lease area where no bauxite deposit was found after exploration. The proposal was sent two years ago and the state mines department has recently asked the company to submit details of payment made towards Net Present Value (NPV) of the trees on this patch of land at the time of forest land diversion.
"We hope the proposal will get through soon, probably ahead of renewal of lease for the rest area”, said an official of the company.
The return of the excess land, which does not have any bauxite deposit, will help the aluminium maker save money in terms of payment of lease dead rent and NPV in case of forest land diversion.The company, in 2002, had surrendered 1,288 ha as it did not find bauxite deposit in those areas, out of original 4,692 ha land allotted to it. After recent surrender proposal of 2,087 ha, Nalco will have 1,315 ha area in its possession including 1,294 ha forest land.
"Surrendering of unused land relieves us from carrying the responsibility of the said area. Since we are operating in a Naxal-infested zone, we cannot always monitor activities of each and every individual in this hilly site”, the official said.
During 2009, members of banned Naxalite organisation raided the Panchpatmali mines and disrupted the mining operation there for several days.The lease agreement for Panchpatmali bauxite mine in north and central block expired in November 2012. The mine, estimated to have 150 million tonne bauxite left, is currently running under temporary work permit granted by the Union Ministry of Environment and Forest (MoEF).