KIOCL Lease Extended Till 2028 In Sandur Forest

20 Jan 2026 CW Team

Kudremukh Iron Ore Company Ltd (KIOCL), facing financial strain and the risk of losing control over a large forest tract, has secured a two-year extension of its mining lease in Karnataka’s Sandur Devadari range, even as environmental activists raised fresh concerns over ecological damage.

The company had received Stage-II forest clearance for 470.4 hectares (around 1,162 acres) in January 2023 and was granted a mining lease for iron and manganese extraction. However, KIOCL failed to begin operations within the mandatory two-year period and initially obtained a one-year extension from the state government until 1 January 2026.

Under the Mines and Minerals (Development and Regulation) Act, 1957, leases lapse if production does not begin within the stipulated timeframe. With the deadline approaching, KIOCL sought intervention from the Union Ministry of Mines, citing delays in executing the forest lease agreement and related legal proceedings before the Karnataka High Court.

In an order dated 27 November 2025, the Ministry invoked its powers under Section 20(A) to grant a further two-year extension, pushing the operational deadline to 1 January 2028. The Ministry noted that the delay occurred due to factors beyond the company’s control and also directed KIOCL to comply with Supreme Court conditions applicable to the earlier Kudremukh mining operations.

Environmental groups strongly criticised the move. Sandur-based activist Sreeshaila Aladahalli said the Forest Department had opposed the project at multiple levels as it would require felling nearly 99,000 trees in an untouched forest zone. He urged authorities to protect the remaining green cover, warning that preventing further deforestation is critical for climate mitigation.

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