London-based Essar Energy Plc on Wednesday announced its unit Mahan Coal Ltd has secured “Stage II” forest clearance from India’s ministry of environment and forests (MoEF) for its Mahan coal block in Madhya Pradesh.
“This clearance is subject to fulfilment of some further conditions,” Essar Energy said on its website. “Mahan Coal will now be required to sign a mining lease agreement with the state of Madhya Pradesh before commencing mining operations.”
Essar Power, which is a 98.27% subsidiary of Essar Energy, holds 50% of Mahan Coal. The Mahan coal block was originally allotted to the mining firm in 2006, the company said.
“Despite clear evidence of violations of the Forest Rights Act and other mandatory conditions, Moily has pushed through “Stage II” clearance for the Mahan coal block. This project involves the loss of over 500,000 trees and will impact over thousands of people in 54 villages,” Pillai said.
The controversial coal block was in 2006 granted to Mahan Coal-a joint venture of Essar Power and Hindalco Industries Ltd. It was granted an in-principle approval for mining by MoEF on 18 October 2012, after pressure from a group of ministers (GoM) on coal mining. The approval came with 36 conditions that required range of studies to be completed and several processes under Forest Rights Act complied with. There are 62 villages that depend on the forest for their livelihood.
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Clearances Approved
Madhya Pradesh
India
Mining,Mining
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