Eco-sensitive Western Ghats: Centre’s forest panel declines final nod for Hindalco’s mine in Kolhapur

The mining project was granted in-principle forest approval in 2009 and environmental clearance from the Centre in January 2014. However, since the company had not obtained the Rights of Forest Resources certificate, it got delayed in seeking final approval for the forest diversion of about 16 hectares. The company has not commenced any mining activity yet on the lease.

The committee noted in the minutes of its July 30 meeting that it had a detailed discussion and deliberation with the deputy director general of forest, regional office, Nagpur and nodal officer, Government of Maharashtra, on the proposal. The FAC cited the issue of the mining lease validity, prohibition of mining proposed in the Western Ghats eco-sensitive areas, and the location of the mining lease in a conservation reserve as the reasons for not considering the proposal at this stage.

“After going through the facts of the proposal, the Committee observed that the proposal for the change in the Compensatory Afforestation areas and issuing of the Stage-II/final approval for the Diversion of 16.00 ha (Actual diverted area is 9.05 ha) of Reserved Forest Land for Mogalgad mining lease in favour of Hindalco Industries Ltd. in Kolhapur District in the State of Maharashtra cannot be considered at this stage due,” the minutes noted.

As per the Environment Ministry’s 2024 draft notification on protection of Western Ghats, “there shall be a complete ban on mining, quarrying and sand mining” in ESAs, and all existing mines have to be phased out from the date of final notification or on expiry of the mining lease. In Maharashtra, the Centre has proposed to carve out 17,340 sq km as ESA, and 211 villages have been proposed as ESA in Kolhapur district.

In 2024, the Centre had issued a sixth iteration of a draft notification declaring 56,825.7 sq km of the Western Ghats as an ecologically sensitive area across the states of Gujarat, Maharashtra, Goa, Karnataka, Kerala and Tamil Nadu.

The Maharashtra government and the ministry’s regional office had argued that Hindalco’s proposal was under consideration before the Centre notified ESAs in April 2013, and thus it should not have a bearing on the proposal. The Centre, however, differed.

On the validity of the mining lease, the FAC noted that the lease was initially executed by the state government in favour of the Indian Aluminium Company Ltd on May 21, 1968, for a term of 30 years, and it expired in 1998. “Thereafter the lease renewal has not been done. Moreover, the period of 50 years from the date of its initial grant i.e. 21/05/1968 is over on 20/05/2018,” the FAC noted.

Under the Mines and Minerals (Development and Regulation) Act, 2015, in the absence of lease renewal, it is valid for 50 years from the date of its grant.

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