SAIL to revive Gua mines at a cost of Rs 3,000 crore under its mega expansion plan

Ranchi, June 9: Uncertainty looms over the mega expansion plan of Steel Authority of India Limited (SAIL) with the PSU’s oldest and biggest Gua iron ore mines in Saranda heading towards a permit crisis brought about by a tardy state.

Gua mines are set to undergo a major revamp at a cost of Rs 3,000 crore under the SAIL’s mega expansion plan. In May-end Union steel secretary D.R.S. Choudhary visited Jharkhand and asked state to ensure speedy compliance of all central conditions for mining activities in Gua by August 13, 2013. Choudhary, with other officials of Union steel ministry, SAIL, PSUs and corporate houses, reviewed the progress of compliance work.

So far, the state administration, which has to prepare the compliance policy for SAIL to implement, seems to have been caught napping.

Spread over 3567.20 acres in Durgaiburu mouza, Gua had received “consent to operate” from the Jharkhand State Pollution Control Board (JSPCB) in April 2013, after a conditional nod from the Union ministry of environment & forests (MoEF) late last year.

The JSPCB approval paved the way for resumption of mining activities in Gua that were suspended in June 2011. Notably, the MoEF had framed environmental norms for mining clearances in 2006 and given SAIL a five-year permit that expired in 2011.

The conditional clearance — with many clauses of environment and wildlife conservation in Saranda thrown in — will expire on August 13 this year.

If no progress is made till the deadline, SAIL’s plans of mega expansion this fiscal year — producing over 23.6 MT per annum hot metal, up from the present 13.2MT — may be thrown haywire. SAIL chairman C.S. Verma in February had said the PSU’s mines were all set to jack up iron ore production to 39MT per annum to support its expansion plan.

But for that, major central conditions for the state to formulate into a policy and SAIL to implement include a wildlife management plan, formation of inviolate or no-mining zones and a catchment area treatment plan for Koel and Koena rivers. The state is also expected to prod SAIL to promote community conservation — encourage people’s participation in protecting the environment — and create a corpus of funds for wildlife conservation and management.

Saranda divisional forest officer K.K. Tiwari said two-three months were enough for Saranda Biodiversity Plan to get approval. But given the sloppy pace of work in the state machinery and hordes of projects awaiting clearance for years, the two-three months may prove too little time.

If that happens, Tiwari said: “There is still an option of getting an extension of the conditional permit from the Centre on state recommendation.”

“The good news is that the final report is complete and with the state forest department. We have written a letter of intimation about the preparation of the final draft to the Centre. And if it’s required, the state can send a letter of recommendation to the Centre for an extension of the permit,” he said.

The plan, most importantly, seeks to form “Conservation Reserve” to give legal sanctity to Saranda, especially in places where mining is over or has never been done.

“So far, with no legal protection, many private firms easily venture into Saranda. But once the state endorses the plan and the Centre approves it, it will be notified at the state level, giving a legal safeguard to Saranda forests,” said a source in the Saranda forest division.

Wildlife activist D.S. Srivastava, among the core members who prepared Saranda Biodiversity Plan, said the matter would be taken up again once state forest secretary Alka Tiwari returned from her leave.