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LATEST NEWS UPDATES | Vedanta Alumina gets violation notice

Vedanta Alumina gets violation notice

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published Published on Sep 2, 2010   modified Modified on Sep 2, 2010

The environment ministry has issued environmental violation notice to Anil Agarwal-promoted Vedanta Alumina’s Lanjigarh refinery.

Violations include failure to adhere to environment protection norms, unauthorised expansion of capacity to 6 million tonnes and sourcing of bauxite from illegal mines. The company has time till September 14 to submit its reply. An unsatisfactory explanation could result in the refinery’s closure.

The ministry had, last week, rejected Vedanta’s $1.7 billion bauxite mining project proposed in Niyamgiri Hills citing violation of environment norms.

In its latest notice, the ministry has asked Vedanta to explain why environmental clearance given to its 1 million tonne refinery in Lanjigarh should not be revoked and the refinery shut down. In a second notice, the ministry has asked the company to explain why the terms of reference for an environment impact assessment study for the plants expansion should not be withdrawn.

Environment minister Jairam Ramesh had on August 24 announced the decision to issue notice to Vedanta for contravening the Environment Protection Act, 1986. The minister had announced that the process of considering an environmental clearance for the refinery’s expansion was being put on hold. The two notices issued by the ministry on Tuesday put Vedanta’s Rs 14,000 crore investment under cloud.

In its show cause notice, the ministry has cited reports that the refinery has encroached and enclosed 26 hectares of forest land within its boundary. The plant was given environmental clearance on September 22, 2004, on the condition that it did not require any forest land. Its illegal enclosure of forest land and the construction of a road using forest land invalidate the clearance.

The refinery had been allowed to go ahead with production even before the issue of linked bauxite mine had been settled. The refinery has been sourcing bauxite from 14 mines, of which only 1 has environmental clearance, two others have been granted terms of reference to undertake environmental impact assessment. The remaining 11 mines are illegal. This is a clear contravention. Additionally, the plant has not put in place the requisite ground water quality monitoring mechanism. Its fugitive emissions in the lime and coal handling area are not up to the mark.

The second notice deals with the unauthorised expansion of the refinery. The company has gone in for a six-fold expansion of the refinery from a production capacity of 1 million tonne to 6 million tonnes per annum. Vedanta had filed for an application for expansion in August 2007. The terms of reference for a detailed impact assessment study was given in February 2008. The final report was submitted by the company in June 2009. However, the environment appraisal committee had asked for additional details. It had also undertaken a site visit, which after several postponements took place in July 2010. The “sub committee of the expert appraisal committee found substantial construction for the expansion proposal.” This was verified by the Saxena Committee in its report of August 2010. The expansion proposal is yet to be cleared by the environment appraisal committee.


The Economic Times, 2 September, 2010, http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Vedanta-Alumina-gets-violation-notice/articleshow/6477798.cms


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