BENGALURU | Dec 08, 2016: The Union ministry of environment and forests (MoEF) has put environment clearance for two major industries on hold in Karnataka saying they "will have an adverse effect" on agriculture.
During a meeting held in September, the MoEF impact assessment division shelved two major projects of India Cements and JSW Cements. The projects proposed to take up limestone mining and set up cement manufacturing units in the backward district of Kalaburgi. While the project cost of JSW was Rs 2,036 crore, India Cements was planning to invest Rs 150 crore.
This has come as a major jolt to the Karnataka government, which is looking to attract investment.
Though it has been more than two months since the ministry shelved the projects, the state industries department is oblivious of the development. "I am not aware of the MoEF shelving the two projects. We reiterate that Karnataka is an attractive destination for industries to set up their units," said Gaurav Gupta, commissioner for industrial development, and director of industries and commerce.
Giving reasons for setting aside the India Cements project, the MoEF report said: "The proposed project area involves the diversion of agriculture area utilized mostly for pulses production. In addition, mining activities would also alter the water and moisture regime of the area, affecting nearby agricultural fields, and hence will have adverse impact on agricultural productivity in an area larger than the project area."
The report also noted that the project location was 8km from the Chincholi wildlife sanctuary . The MoEF has asked India Cements to return with an alternative mining site or with reduced area for mining at the present site.
On the JSW project, the report said: "The committee noted that the PP has wrongly reported the minable reserves in its submission. There is no production plan in the absence of estimates of minable reserves. The mine plan is based on the potential reserve and not on minable reserves; therefore the proposal is premature at this stage for consideration. The committee therefore rejected the proposal in its present form."
Sources in the government said the rejection of the two projects would not have largescale impact on the cement industry . "We are already witnessing a downturn in the demand for cement, especially in south India, and a number of projects have been stalled due to the adverse market conditions," sources said.
Several large cement manufacturers, including La Farge, are yet to begin setting up their proposed cement manufacturing units in Karnataka. Kalaburagi has rich limestone deposits, which are essential to the cement industry. In 2014, according to Karnataka Udyog Mitra, Rs 39,820 crore was invested or being invested in the district.The investment details suggested that 32 units were being set up by 16 companies and would generate employment for 18,020 people.
The forest ministry's decision not to grant approval to two large cement manufacturing units presents an interesting dilemma. On the one hand, Kalaburagi district needs the investment; on the other, food and climate security are paramount. What's shocking is that the industries department is not aware of this development. The ministry's decision seems a carefully considered one. An ill-conceived project, though it may provide employment, can bring more harm than good.
(Source: http://timesofindia.indiatimes.com/)