The Centre has accorded final clearance to the National Aluminium Company Limited (NALCO) for diversion of 110.3 hectares of forest land for bauxite mining. The mine is located in the Panchpatmali south block of Koraput district.

According to a release from the Navratna PSU, the original lease period expired after 30 years of mining. Given the current expansion projects being implemented by Nalco at its various units, the forest clearance decision would help the company enhance its production capacity at the desired pace.

The ministry of environment and forest (MoEF) while granting the stage-I (in principle) clearance for the forest land, had put certain conditions for making it entitled for the final clearance though. The conditions included plantation on degraded forest land and preparing a plan to wean away the practitioners of the ecologically destructive jhum cultivation in the vicinity of the forest land and providing funds for its implementation.

The Centre, while granting the approval, also directed the state government to ensure proper utilization of the company's 'corporate social responsibility' (CSR) fund for peripheral development activities, the release pointed out.