The state Farming corporation of Keralia Ltd. n "';i,Ttr;;i:,i,i{,i:,i#;,i{*, nl;ffH#ffi Regd. Office : Farm House, P.B. No. 13, Vettithitta P.o., , Alimukku, , Kerara, ptNs89 696 Telephone :0475-222224sts1rs2 Fax:0475 -2222s32 | | Grams: MRTMBU ail : [email protected] [email protected] 1

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Sir,

Sub:- Forest Land on Lease - Lease granted in 1972 - Renewal of Lease pcriocl Compensatory afforestation - forwarding of clarifications - reg.

Ref:-1. G.O(MS)No:280/72/ LD dt. 28-08 -r972. 2. Lease deed dt.29-03-1984. With Forest Departmenf. 3.Query in respect of compensatory afforestation while doing online filing of application for renerval of lease period.

With reference to the above we would lilce to bring the following facts for the kind consideration and favorable disposal of the query in respect of compensatory afforestation.

1. The State Farrning Corporation of Ltd., rvas registered as a firlly Government ownedcompany under tlre Indian Companies Act, 1956 with effect fi'om l5th April, 1972. The main object of the aompany rvas cultivation of sugarcane in the clearfelled forest lands leased out to the cornpany by Governrrent and supply of sugarcane to the Mannam Sugar Mills Co-operative Ltd., Pandalam. The Forest lancl rvas allotted vide G.O (MS) No: 280/72lAD dt. 28-08-1972 and the tenns and corrditions of the lease are incorporated in the lease deed dated 29-3-1984, At the time of allotment of forest

land there was no liabilitv for cornpensatory afforestation. .

2. The Sugarcane cultivation resLrlted in heavy loss year after year and by 1979 all the activities of the Company were paralysed due to liabilities and lack of funds even for payment of salary. Goverrurent directeclthis Corporation to divelsify its activities by raising other crops in the farrns depending on the suitability of thr: areas, with a vierv to make the Compan), viable. Accordingly the Company identified the raising of large scale rubber plantation and rehabilitating existing cashew and coconut crops as a financially viable proposition. Planting of rubber rvas done during the year 1982-83 LFAn and 83-84 rvith loan and grant fronr W.C.D.P, loan from Canara Bank under the G Agricultural Refinance Scheme of NABARD, Subsidy lronr Rubber Board and =1 1988-89 and tvhich is being o:t assistance from Covernrnent. Tapping was started during E=:E o)> continued in all estates. grb(o '! lx ls

Latex Cenffiging Faclory ; Poonkulanji P.O,, Chithalvetty, - 689 695, Tele -fax : 0475-23 53 108 | Estater; : Ch1hapetty, Mancode p.0,, Patharapurarn6Sg 694, Telefac 047t23 79 014 lKumaramkudy: Kumaramkudy P.O., Pathanapuram-689 696, Telephonr:: 0475-2219 256 lMuilumala:

Chembanaruvi P.0., Pathanapuram$89 696, Telephone: 047s23 31 170 lCheruppittakaw: Chembanaruvi PO., Pathanapuram{i89 696, Tel+fax: 047U2331 M The state Farming corporation of Kerala (A Ltd. Govemment of Kerala Undeftaking) CtN : U01115KL 1972SGC002418 An ISO 9001 : Z@ Regd, office ; Farm p.B. Certifed Cmpany House, No. 13, vettithitta p.o., punarur, Arimukku, Koilam, prNsgg Kerara, India 696 Terephone : 0475 - 22 22 245151 t52 Fat : 0475 - 22 | 22 532 | Grams : TGRTMBU gmait.com [email protected] I 3' As per the terms and conditions of the lease deed Dt.29-3-r9g4 the period oa.il f#iy#.':#,H,::';:T:::i:first 30 ,*i"i-"ir0 vears on expirv orthe vears appricarion ror renewar"r,."r.irr"rther *rJ;ffiilffi,ffi: not done by Forest b:JT#JI department clLte to the pencling n:r. dispute regarcring rease The forest department has rent arrears. clairned lease rent arrear with 1972 onwards' cumurative interest fi"orn The demand rvas about Rs.43 c'ores even thougrr the principar due was less than Rs.3 crores. arnount The nratter of dispute ,us lak.,, Minister for Forests up witrr Hon,bre and Hon'ble Minister fof Agricirlture for settlement ancl Hon,ble chief Minister of the issue by One Tirne Setilernent.

4' Finally government has sanctionecl trre proposal for one G'o.(Rt.) No: time settlement vide 42gl2015/F&wLD D:rtcd 19-09-2015. order' government As per tr.re above referred has accorded sanction to settre the rease rent an.ear by remitting Rs'5'5 crores as one Time Settlernent (o'fs) and accordi'gly rerrittance on 2l-10-2015' Thus the was nrade issue of Lease rent affear rvas have proceeded fuily settled and rrence we with Forest deparlment for renewal of lease. Then we are informed that fresh applicatio'has to ue nte,l or.rline fo'entering to fresh Forest Department. i' agreernent with

5' In this context it is brought to yotLr kind rotice that the online application is not for fresh allotment Forest filed land. It was subrnitted for the renewal existing of lease period of the land with us maintained as Rubber ancl cashew plantations. The now under rubber entire rand and other crops ofSFCK was clear Ltdby handecl over to SFCK the Forest Depaftrlent. At the tilne of hancling afforestation. \\,as no compensatory After obtaining this land, this pSU ha d the rna.jor area rubber plantation' By into sLritable agronornic practices rve growth rrave prevented soir erosion and of flora ancl fauna is not cttrtailed. The major ob.jective o[ afforestation is carbon so as to ltave a control of the global climate and prevent global warmin of carbon seqtrestration approxi by mafirre r.ubber plantations js Tons of carbon/Fla prl year. As sgch for about 2000 FIa there will be a carbon sequestration o1'58,000 to 8o000 tonr-oi"uruon seq.estration..flris t,l-.: ttran rvhat a naturaL ror"r, .ou"rver wi,wltl sequestrate.SgtJucs rn ;;.ii:r-":,T:l1tl^:ii:these circumstances SFC rnay be exenrpted l'rom cornpensatory aftbrestation.

MANA

Latex poonkulanji Cenffiging Factory : p.0., Chithalvetty, p

po., parhanapuram-68e 6e6, Terephone: :*T:Ht:1"]1-:i Y::::n.\|lxlyramruov:Kumaramkudy 047s-221e 2s6 f Muilumara: ;;;;ff ;.,:::"-:;':::,":,