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LATEST NEWS UPDATES | Green bar on Vedanta aluminium expansion

Green bar on Vedanta aluminium expansion

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published Published on Oct 22, 2010   modified Modified on Oct 22, 2010

The environment ministry has told Vedanta Aluminium to stop all construction on the six-fold expansion of its aluminium refinery at Niyamgiri in Orissa, citing violation of environment laws.

In a letter sent to the company today, the Jairam Ramesh-headed ministry also said Orissa’s forest and environment department should take legal action against the firm for the violations in its attempted expansion of the plant from 1 million tonnes per annum (mtpa) to 6mtpa.

“You are directed to maintain status quo and no further construction shall be undertaken in respect of the expansion project,” the letter said.

A panel set up by the ministry had earlier this year said the company colluded with state officials to illegally occupy forest land, and was expanding its refinery without approval. The panel also observed that mining in the Niyamgiri area would endanger the livelihoods of primitive tribal groups like the Dongariya Kondhs.

In its response to a ministry showcause notice, Vedanta had argued that prior environmental clearance was not required for the expansion. The company said it had committed Rs 5,000 crore to the construction, which was about 50 per cent complete.

But the ministry has said that when environmental clearance for the 1mtpa refinery was given in September 2004, the firm was told it could not expand or modify the plant without prior approval.

Vedanta, the ministry said, did not indicate in its environmental impact assessment reports that construction had already started. While the company says it began the construction after a public hearing in May 2009, the ministry said documents suggested the expansion began in November 2008. The ministry has also claimed that of the 14 mines from which bauxite is to be sourced, only one has obtained clearance.

The ministry’s decision caps a scrutiny of the Vedanta project and is in line with minister Ramesh’s assertions that projects will no longer get automatic approvals.

Earlier this week, most members on a government panel recommended that clearances given to the proposed $12-billion Posco steel plant, also in Orissa and located near Paradip, be cancelled.

However, Ramesh had said earlier this week there were major differences between the Posco and Vedanta projects. While Vedanta has started construction, the Posco steel plant is yet to get off the ground as land has not been handed over.


The Telegraph, 22 October, 2010, http://www.telegraphindia.com/1101022/jsp/nation/story_13086622.jsp


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