For the best experience, open
https://m.nenow.in
on your mobile browser.

Cement giant accuses Assam govt of illegal forest charge, seeks Rs 56 crore refund

09:50 PM Aug 15, 2024 IST | Mahesh Deka
UpdateAt: 11:27 AM Aug 16, 2024 IST
cement giant accuses assam govt of illegal forest charge  seeks rs 56 crore refund
Dalmia Cement (North East) Ltd. has accused the Assam government of wrongfully extracting Rs. 56.85 crore from the company.
Advertisement

Guwahati: In a startling allegation, Dalmia Cement (North East) Ltd. has accused the Assam government of wrongfully extracting Rs. 56.85 crore from the company for a forest clearance fees for its limestone mine in Dima Hasao district that, it claims, was never required.

Now, the cement giant has approached the Central Empowered Committee (CEC), a Supreme Court-constituted body, seeking a refund, claiming the land where the mine is located is not classified as forest land.

Advertisement Advertisement

To operate the mine, Dalmia had to obtain forest clearance under the Forest (Conservation) Act, 1980 (FCA) and consequently paid the hefty sum as Net Present Value (NPV), Tree Operation Cost (TOC), Compensatory Afforestation Cost (CAC), and other charges.

However, a recent development has thrown the entire process into question. The Assam government has floated tenders for mining leases in the vicinity of Dalmia Cement's mine, categorizing the land as 'non-forest'. This revelation has prompted the company to question the earlier classification of its own mine as forest land.

Dalmia has presented evidence, including coordinates plotted on the PARIVESH portal maintained by the Ministry of Environment, Forest and Climate Change, to support its claim. The company also points to another nearby mine, operated by M/s Assam Mineral Development Corporation Ltd., which did not require forest clearance.

The company argues that the government's contradictory stance on the land's classification amounts to a grave error, resulting in undue financial burden.

"The requirement of obtaining a forest clearance for our mine was mandated under a mistaken belief of fact. We were wrongly made to pay large sums of money, which is liable to be refunded with interest," Dalmia Cement said in a letter to the CEC.

The company has cited Supreme Court orders stating that FCA provisions apply only to classified forest land, further strengthening its case.

Dalmia approached the Assam government seeking a refund but is yet to receive a response following which the company decided to approach CEC.

Legal experts believe this case could have far-reaching consequences. “If Dalmia wins, it could open a Pandora’s box of similar claims from other mining companies,” said an environmental lawyer.

“It will also put pressure on forest departments to accurately classify land and avoid such controversies,” he added.

Advertisement
× Advertisement