Guwahati: The Central Empowered Committee (CEC), a Supreme Court-constituted body, has rejected a refund plea by Dalmia Cement (Northeast) Ltd.
Dalmia Cement (Northeast) Ltd, a subsidiary of Dalmia Cement (Bharat) Ltd, sought the return of Rs. 56.85 crore paid towards forest conservation charges for its limestone mine at New Umrangshu in Assam’s Dima Hasao district.
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The decision, detailed in the CEC’s report on Application No. 1575 of 2024, concludes that the land in question aligns with the definition of “forest” as per Supreme Court guidelines, dismissing the company’s claim that it was wrongly classified as forest land.
Background of the Dispute
Dalmia Cement (North East) Ltd., a major cement manufacturer operating 15 plants across India, operates a 417.50-hectare limestone mine at New Umrangshu, originally leased in 1992 to Assam Industrial Development Corporation Ltd. for 20 years.
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The lease was transferred to Calcom Cement India Ltd. (now Dalmia Cement) in 2008 without initial forest clearance requirements under the Forest (Conservation) Act, 1980. However, in 2007, the North Cachar Hills Autonomous Council flagged the area as an Unclassed State Forest (USF), prompting the company to seek and obtain forest clearance in 2020 after paying Rs. 56.85 crore for Net Present Value (NPV), Compensatory Afforestation Cost (CAC), Tree Operation Cost (TOC), and other charges.
The controversy arose in December 2023 when the Assam Government issued a Notice Inviting Tender (NIT) for seven mineral blocks, including the adjacent “New Umrangsho Limestone Block,” stating that these areas contained no forest land.
Dalmia Cement argued that this contradicted the earlier classification of its mine as forest land, asserting that it had been misled into obtaining unnecessary clearance and paying hefty fees.
The company demanded a refund of Rs. 56.85 crore with 18% annual interest, claiming the land was non-forest based on the NIT and Decision Support System (DSS) data from the Ministry of Environment, Forest and Climate Change (MoEFCC).
In August last year, the cement giant approached the CEC, seeking a refund, claiming the land where the mine is located is not classified as forest land.
CEC’s Findings
The CEC conducted an exhaustive investigation, involving site visits, drone surveys, and consultations with Assam and Meghalaya officials, to determine the land’s status.
The committee relied on the Supreme Court’s 1996 ruling in T.N. Godavarman Thirumulkpad vs. Union of India, which broadly defines “forest” as areas with natural forest characteristics, regardless of official classification.
A drone survey of the seven NIT blocks, covering 1,238 hectares, revealed an average tree density of 42 trees per hectare, far below the 200 trees per hectare threshold set by Assam’s Trees Outside Forest Rules, 2022, for a forest patch of 10 hectares or more.
However, one 14.53-hectare patch across two Boro Hundong blocks showed a density exceeding 200 trees per hectare, qualifying it as forest land. The New Umrangsho block, adjacent to Dalmia’s mine, had only 20 trees per hectare, dominated by grass and bamboo.
For Dalmia’s mine, the CEC noted that extensive excavation had removed much of the original vegetation, making a current assessment impossible.
Historical records and the 2007 forest classification by the local council supported the view that the area was forested at the time of clearance. The committee found no evidence of discriminatory treatment, as nearby lands owned by Dalmia for its cement plant and another mine were not subjected to forest clearance requirements, suggesting context-specific decisions rather than bias.
CEC’s Ruling and Recommendations
The CEC dismissed Dalmia’s refund plea, stating that the company could have challenged the forest classification earlier using available tools but complied without objection in 2020.
“The applicant must have checked with the different tools available at the time he was asked to apply for diversion of forest land to check the status of land or he could have consulted the MoEF&CC,” the report noted, denying relief due to the lack of contemporary evidence.
For the NIT blocks, the CEC concluded that, except for the 14.53-hectare forest patch, the areas are non-forest and can proceed to auction, provided environmental guidelines are followed.
The CEC recommended that Assam either preserve the forest patch or seek Central Government approval under the Forest (Conservation) Act before mining.
It also advised a comprehensive ecological study by a reputed institute to assess mining impacts on the Kopili River and nearby Krem Labit Caves in Meghalaya, emphasizing sustainable development.
Dalmia Cement has not yet indicated whether it will appeal the CEC’s findings to the Supreme Court.
Despite repeated attempts, Dalmia Cement officials could not be reached for comment.