Govt declines envt clearance to Vedanta for Orissa project

LD VEDANTA

New Delhi, Aug 24 (PTI) Environment clearance was denied
by the Indian government Tuesday for Vedanta's USD 1.7 billion
bauxite mining project in east Indian state Orissa on grounds
of serious violation of forest laws in a blow to the UK-based
group already facing legal troubles to a planned oil deal in
the country.
"There has been a very serious violation of Environment
Protection Act, Forest Conservation and Rights Acts by the
Orissa Government and Vedanta's bauxite mining in the
Niyamgiri Hills," Environment Minister Jairam Ramesh told
reporters here.
Therefore the stage II forest clearance for the
State-owned Orissa Mining Corporation (OMC) and Sterlite
Bauxite mining project on the Niyamgiri Hills in Lanjigarh,
Kalahandi and Rayagadha districts of the state cannot be
granted, he said.
"It stands rejected," Ramesh said while accepting the
recommendation of Forest Advisory Committee (FAC) seeking
withdrawal of forest and environment clearance respectively to
the state government as well the Vedanta mining project.
Reacting to the development, Vedanata Resources
indicated it was not going to abandon its proposal.
Vedanta said it has not violated any law and would
look for alternate sources of the mineral.
"Vedanta Resources Plc reconfirms that there has been
no regulatory violations of any kind at the Lanjigarh Alumina
refinery. We are not in possession of Niyamgiri mines and no
mining activity will be undertaken till all approvals are in
place," the company said in a statement here.
The company also said that the Orissa government is
"actively considering" to allocate alternate bauxite mines to
feed its 1 million capacity alumina Lanjigarh refinery where
capacity augmentation is planned at an investment of USD 1.7
billion.
The stalling of the project has come at a time when
Vedanta is facing legal trouble in its bid for control of
Cairn India, a potential deal valued at USD 9.6 billion that
will push its stake in the oil market.
The decision also caused some consternation in the
Biju Janata Dal-ruled government in Orissa calling it
unfortunate.
Chief Minister Naveen Patnaik hoped there is "no
politics" behind Environment Ministry rejecting clearance
while Ramesh dispelled any such impression.
An unhappy Patnaik also said that Ramesh had given
no indication of today's decision not to give clearance to the
project in the state when he met him in Delhi on Monday.
"He (Ramesh) had never mentioned yesterday about
this (denying clearance to Vedanta's mining project)," Patnaik
told reporters in Bhubaneswar.
Asked whether there was any politics behind the
Centre's action, Patnaik said, "I certainly hope there is no
politics."
Ramesh on his part said no politics or prejudice
against the BJD-ruled government was involved in his
ministry's decision.
"There has been no emotions and no politics and no
prejudice involved in the Vedanta's case...The decision is
purely on the basis of the proper legal approach," which
Ramesh said was based on the Saxena panel report, Auditor
General's (AG) report and recommendations of the FAC.
Ramesh said he has no prejudices against the Orissa
government as his Ministry has cleared an important irrigation
project in the state for which the in-principle approval was
accorded yesterday.
Senior BJD MP Pyari Mohan Mohapatra said the Orissa
government was likely to seek Prime Minister Manmohan Singh's
intervention. PTI AJ
MYR


The information contained in this electronic message and any attachments to this
message are intended for the exclusive use of the addressee(s) and may contain
proprietary, confidential or privileged information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please notify
the sender immediately and destroy all copies of this message and any attachments
contained in it.