Aditya Birla Group: Massive Coal Mine Plan Sparks Concerns

Aditya Birla Group Project Draws Concerns

The Madhya Pradesh government has flagged concerns about the diversion of forest land for a coal mining project proposed by the Aditya Birla Group in an elephant corridor in the state’s Singrauli district. As per preliminary surveys, more than 1.10 lakh trees belonging to different species will be felled and thousands of people will be displaced for the open-cast mining project. 

Further, the state government has also highlighted the presence of important water bodies flowing through the proposed mine lease area. These water bodies replenish underground water tables and provide sustenance to the dense forest in the region. In addition, project-affected communities, who are not satisfied with the rates of compensation finalised against private land to be acquired, have raised the issue with the Madhya Pradesh Chief Minister’s office. 

Elephant Corridor and Wildlife Concerns

The presence of an elephant corridor within the proposed mining lease area was highlighted in a site inspection report compiled jointly by the Divisional Forest Officer (DFO) of Singrauli Forest Division and the Chief Conservator of Forests (CCF) of the Rewa Forest Range.

Though the Forest Advisory Committee (FAC), which evaluates the potential impacts of infrastructure projects upon forest land on behalf of the Union Ministry of Environment, Forests & Climate Change (“the ministry”), took cognizance of these findings in the site inspection report, it has not recommended any further studies or analyses.

FAC Meeting Findings

“As per the site inspection report of DFO, Singrauli, and CCF Rewa, the working plan prescription shows that compartment nos. RF [Reserved Forest] - 291, 292, 293 & 391 fall in the Elephant Corridor. However, no movement of elephants has been noticed in the last 10 years. The working plan also prescribes, in case the diversion of the said area is essentially required, an alternative Elephant Corridor may be formed. The DFO and CCF have recommended the proposal on the condition of compliance with the above condition,” states the minutes of an FAC meeting held on 7 June 2024.

The FAC has also ignored findings that several species of wild animals have been sighted in the region of the mining lease area. “... as per enquiry with local forest staff, the wildlife in the area include occasional movement of leopards, sloth bear, spotted deer, nilgai, wild pigs, etc.,” the minutes further state, quoting the site inspection report.

EMIL's Response Awaited

A questionnaire was emailed by this correspondent to Essel Mining Industries Limited (EMIL), a subsidiary company of the Aditya Birla Group, asking amongst other queries, to comment on what steps have been proposed for the conservation of the elephant corridor and wildlife found in the region.

No responses had been received at the time this article was published. This article will be updated as and when responses to the queries are received.

Tree Felling and Species Affected

The trees that will be felled for the project include several species like Sal, the rich wood of which is used for construction purposes; Mahua, the flower buds of which are used to brew a potent liquor; teak, another tree which is known for the quality of its wood; Jarul, a tree known for its medicinal uses and ornamental flowers; and Palash, the leaves of which are used to stitch eco-friendly dining plates and the resin of which is used in the leather and culinary industries.

The inventory of trees also includes wild guava or Ceylon oak, known for its medicinal uses; the golden shower tree, which is ornamental and has medicinal uses; and Tendu trees, the leaves of which are used to roll traditional Indian cigars called beedis and which also produce an edible fruit during summer. The survey by the ministry’s regional office has also revealed that there is a lot of regeneration of trees in the forest land, particularly those of Tendu, Palash, and Jarul.

But discrepancies have been found in various surveys in so far as the total number of trees that have been identified for felling. Though the working plan indicates that 1,10,496 trees of various species and girth have been identified for felling, the regional office of the ministry has arrived at a figure of 1,07,051 based on the sampling method. The ministry’s regional office has computed this number by taking a sample size of 87 trees per hectare. This figure was found to be correct in the enumeration method when a counting exercise upon a plot measuring one hectare in area was undertaken randomly by the office.

Sampling Method Criticism

The joint site inspection report of the DFO (Singrauli) and CCF (Rewa) stated that although the total number of trees in the proposed diversion area, enumerated as 1,07,051, was derived through the sampling method by taking about 10 percent of the total area for diversion, there might be “considerable variation between the said figure and the actual number of trees involved in the proposal.”

This report flagged potential errors in calculation because the samples over which enumeration was carried out are in areas like pits. As a result, this method does not provide a clear picture of the actual number of trees proposed to be felled.

“Therefore, it is advisable to take up total enumeration of the trees proposed for actual felling, including the area proposed for open-cast mining and external dumping of overburden in the forest land, species and girth class-wise, to arrive at the actual number of trees to be felled,” the report recommended.

However, the FAC rejected this recommendation by citing that the method was in accordance with the ministry’s guidelines. “Total enumeration is necessary only up to 10 hectares. For larger areas, species-wise and diameter class-wise abstract of trees may be computed either from the working plans or by standard sampling methods. Thus, the sampling can be done for the larger areas; however, it is important to ensure that the sampling is adequate enough to provide a true representation of the area,” it said.

The FAC has, however, asked the ministry’s regional office to re-examine and ensure that the sampling is adequate and that the number of trees finally identified for felling truly represents the forest density of the area.

Water Bodies Affected

The forest land proposed for diversion has two important tributaries flowing through it: the Bandha Nallah, which falls under the catchment area of the Sone River, and the Kachanmuda Nallah, which flows into the Rihand Dam. It was brought to the attention of the FAC that both water bodies flow directly through the mining lease area.

The Madhya Pradesh government informed the FAC that a scientific study of the hydrological regime of the region has already been conducted and the recommendations of the study have been approved by the state’s water resources department. The details of the study and its recommendations do not form part of the FAC minutes of the meeting.

The 5 million tons per annum mining project has been proposed at a cost of Rs 2,600 crore. The coal reserve of the Bandha block is around 560 million tons, and mining operations are projected to take place over a period of 45 years. The 807.917 hectares of forest land are part of 1,850.94 hectares of lease area spread across five villages – Bandha, Tenduha, Pidarwah, Deori, and Pachaur – in the district’s Sarai tehsil.

In August 2023, the ministry’s Expert Appraisal Committee (EAC) recommended environmental clearance for the project, despite a contentious claim by the Madhya Pradesh government that clearing the vast forest land – equivalent to more than 1,500 football fields – will affect the livelihood of just two individuals. Both individuals identified by the state government belong to the Scheduled Tribe community.

Livelihood Concerns and Forest Rights Act

On the other hand, local communities allege that the majority of the population in the region are dependent on forest resources as their only source of livelihood. According to data compiled by the Madhya Pradesh government, a whopping 1,569 of the 3,551 project-affected persons belong to various Adivasi (or Scheduled Tribe) communities.

This apparent anomaly, in a mining project where over 40 percent of affected persons belong to Scheduled Tribe communities, has in the past been attributed to poor implementation of the Forest Rights Act, 2006, in Madhya Pradesh.

The state government has launched a portal-cum-mobile application for the settlement of forest right claims, which has been the subject of major controversy. The Act envisages that the claims should be settled through a three-tier structure at the district level, with the Gram Sabha (self-governing councils comprising all adults of voting age in any village) at its lowest rung.

A writ petition against this method of claim settlement, which was filed in the Madhya Pradesh High Court in July 2021, is still pending for disposal even after three years.

Latest surveys seem to suggest that there are more forest-dependent people living in the project-affected area than have been identified and compensated by the state government. The ministry’s regional office found in its survey that a small community continues to live over a particular compartment of reserved forest, measuring 31.94 hectares, which has been earmarked for diversion.

It was also found that this community was practicing agriculture in their settlement inside the reserved forest. The true nature of this occupied patch (marked as ENCR in revenue records) is yet to be determined.

“Regional Office has informed that in an area of 31.94 ha in RF [Reserved Forests] -291, cultivation was in practice and a small population was also found to be staying in their individual houses built there. In the forest stock map, the same area was marked as 'ENCR.' The regional office informed the FAC that the exact status of the forest land under occupation was being determined by the forest and revenue departments of Madhya Pradesh. However, the FAC seemed satisfied with the Madhya Pradesh government’s rather unclear response that a Rehabilitation & Resettlement (R&R) Plan has already been finalised for project-displaced families. It is not clear as to whether the population living in this patch of forest land will be covered or excluded under the R&R package.

'The exact status of the said land was under process of determination, jointly by the Forest and Revenue departments. In this connection, the Nodal officer of the state government of Madhya Pradesh informed that a total of 966 families are to be rehabilitated and a rehabilitation plan has already been approved by the competent authority of the State,' the minutes further state.

Earlier, the project proponent, Essel Mining Industries Limited (EMIL), a subsidiary company of the Aditya Birla Group, had proposed to divert 785.49 hectares of forest land for the project. However, recently it has revised the figure upwards to 807.917 hectares. Out of the 807.917 hectares, 86.694 hectares belong to the category of protected forests, 717.673 hectares are reserved forests, while the remaining 3.550 hectares are revenue forests. Coal extracted from this mine will be used for captive consumption by various power plants as well as for commercial sale.

The business conglomerate has said that the mining project will generate direct and indirect employment for around 5,000 persons. However, owing to land takeovers for a number of mining projects already operational in the region, the livelihood of local communities has been hit hard.

 Depletion of forest land for the existing projects has also hit the livelihoods of local communities. At the same time, the existing projects have not generated adequate employment opportunities for those who have lost land and livelihoods.

Other Mining Projects in the Region

Nearly 260 hectares of forest land were cleared for the Suliyari coal mining project, which belongs to the public sector Andhra Pradesh Mineral Development Corporation. Work is underway to clear another 1,397.54 hectares of forests for developing the massive Dhirauli coal mining project belonging to the Adani Group. More than 5.70 lakh trees will be felled for the Dhirauli project. For another abutting coal block, Amelia (North), final clearance has been granted for the diversion of 728.75 hectares of forest land to the project proponent Jaiprakash Power Ventures Private Limited.

Tree-felling operations are underway in a phase-wise manner over 843.76 hectares of forest land in the adjoining Amelia coal mine of the public sector enterprise THDC India Limited, where coal production has already commenced. Around 581 hectares of forest land will also be cleared for operationalising the Bandha (North) coal block, the bid for which has been successfully won by Jaiprakash Power Ventures Private Limited.

While the proposal to clear a large swathe of forest land is a major concern for those dependent on its resources, the lack of transparency in the ongoing takeover of agricultural land and households has also kept local communities on tenterhooks. Project-affected communities have been trying to raise their concerns regarding land acquisition with senior officials in the administration and bureaucracy.

Memorandum to Chief Minister

On 5 July, representatives of the Bandha project-affected villages submitted a memorandum to the office of the Madhya Pradesh Chief Minister Mohan Yadav demanding jobs, employment, adequate compensation, and proper rehabilitation.

'The erstwhile Congress state government headed by Kamal Nath had cut down circle rates across Madhya Pradesh by a staggering one-fifth. As a result, the compensation that is being decided against the land to be acquired from us is far less than what landholders in neighbouring states receive during acquisition. At present, circle rates in Singrauli are lower than in districts abutting it in the neighboring states of Chhattisgarh, Bihar, and Uttar Pradesh,' Devender Pathak, the Pradhan (headman) of Bandha Gram Panchayat, which includes all four project-affected villages, told this correspondent.

In 2019, the Kamal Nath government had slashed circle rates across Madhya Pradesh by 20 percent, apparently in a bid to give a fillip to the real estate and construction sector. Through their memorandum, project-affected villagers have alleged that communities, particularly those belonging to the lower socio-economic strata with small landholdings in mineral-rich areas of the state, have been unwittingly rendered victims of this policy measure during land takeovers for mining projects.

It has been further informed through the memorandum that an agreement had been reached in November 2021 with representatives of project-affected communities whereby it had been agreed that each landowner will be entitled to an additional package if the cost of the price to be acquired comes below Rs 20 lakh per acre.

'Now, the project proponent has reneged on this agreement. There is a complete lack of transparency in the process in which land is being acquired from us. No measures, whatsoever, have been taken to date by the government over the objections that were raised by local people during the social impact assessment of the project. The revenue records have not been updated for long, and notices are being issued even to people who have died many years ago. The total number of families that will be displaced from their households has not been revealed by the government. Moreover, the site that has been chosen for developing a colony for rehabilitating and resettling the displaced families is not conducive to living. A substantial section of the population in this region belongs to various Scheduled Tribe and Scheduled Caste communities who are being shortchanged for the mining project,' added Pathak.

Awaiting Responses

EMIL has also been asked in the questionnaire to comment on the veracity of the allegations that it has reneged on its promise of providing additional financial compensation against land acquired for the project. Responses are awaited. This article will be updated as soon as we receive responses from EMIL, Aditya Birla Group.

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