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LATEST NEWS UPDATES | Church wrath on Vedanta

Church wrath on Vedanta

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published Published on Feb 6, 2010   modified Modified on Feb 6, 2010

The Church of England has sold its shares in Vedanta Resources, owned by NRI businessman Anil Agarwal, saying it is unhappy with the way the company is pursuing a project in south Orissa against the wishes of a local tribe.

The Church sold its £2.5-million stake today after its representatives visited the Niyamgiri hills in poverty-ridden Kalahandi. The area is considered sacred by the Dongria Kondh tribe.

Vedanta intends to mine the disputed area for bauxite but has met with resistance from the 8,000-strong tribal community, which believes the region is the abode of their deity Niyam Raja.

The Church said: “We are not satisfied that Vedanta has shown, or is likely in future to show, the level of respect for human rights and local communities that we expect of companies in whom the Church investing bodies hold shares.”

Vedanta expressed disappointment. “Vedanta remains fully committed to pursuing its investments in a responsible manner, respecting the environment and human rights.”

The Church decided to sell out on the advice of its ethics watchdog, which was of the opinion that its engagement with the company had produced no substantive results and continuing relations would be inconsistent with its ethical investment policy.

John Reynolds, the ethics investment advisory group chairman, has been quoted, saying: “Our concern is that a company registered and listed in the UK should conform to the established environmental, social and governance norms expected in the London market.”

Vedanta shares were down 4.5 per cent at 2,306 pence in midday trading on the London Stock Exchange.

The company said: “We will continue to engage closely with the Church of England to address the concerns they have raised.”


The Telegraph, 6 February, 2010, http://www.telegraphindia.com/1100206/jsp/frontpage/story_12073859.jsp
 

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