The Ministry of Environment, Forest and Climate Change has granted in-principle forest clearance to Lloyd Metals and Energy Ltd for setting up an iron ore beneficiation plant in Gadchiroli, Maharashtra—a region long affected by Maoist insurgency.

The clearance permits the diversion of 937 hectares of forest land and the felling of approximately 123,000 trees to facilitate the project, aimed at processing low-grade iron ore from the company's Surjagarh mines. The Ministry's forest advisory committee approved the project on 12 May, stipulating that land use must proceed in phased sections—300 hectares first, then 200, and the remaining 237 hectares only upon satisfactory compliance.

The Ministry has also mandated compensatory afforestation in Chiplun, Ratnagiri, and directed the company to seek approval from the National Board for Wildlife, as the site falls within a tiger migration corridor between the Tadoba and Indravati reserves.

The project aligns with the Maharashtra government’s broader push to develop Gadchiroli’s mining sector. The cabinet recently established a dedicated District Mining Authority chaired by Chief Minister Devendra Fadnavis. The state’s intent is to revive industrial activity in the LWE-affected area through infrastructure and social development.

Mining operations in Surjagarh began only in 2016 despite a lease granted in 2007, and have faced repeated disruptions due to Maoist attacks and tribal protests. In 2016, Maoists torched dozens of vehicles at the mine site. However, ongoing security efforts by state and central forces have since diminished the insurgency.

Earlier this year, Fadnavis declared parts of Gadchiroli as Naxal-free while inaugurating key civic projects, including roads, education, and healthcare facilities, and encouraging further industrial investment in the region.