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LATEST NEWS UPDATES | Vedanta on mine hunt, Cong testy

Vedanta on mine hunt, Cong testy

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published Published on Aug 29, 2010   modified Modified on Aug 29, 2010

Vedanta has initiated efforts to get mining rights in other areas of the state to run its 1-million-tonne plant at Lanjigarh but the Congress has vowed to block the handover of at least one of the alternative sites.

The company’s rethink crystallised after Congress general secretary Rahul Gandhi hinted on August 26 that the Niyamgiri hills would not be given for mining to Vedanta Alumina.

During the past two days, the chief operating officer of the company, Mukesh Kumar, met officials of the Orissa government and the state mining corporation to explore the possibility of getting some other mines in nearby areas.

“We have appealed to the state government to allocate some other bauxite mines closer to the plant. The company will have no problem if mines are allocated within 30-40km radius of the plant,” Kumar told reporters.

Official sources said Vedanta has shown interest in the Gandhamardan hills in the undivided Bolangir district, the Sashu Bohu Mali hills in Koraput, Mali in Rayagada and Rajendramali in Kalahandi.

“The Naveen Patnaik government is quite keen to bail out the group. At the same time, it is going to be cautious on the issue because it does not want to give the Congress a chance to accuse the ruling Biju Janata Dal of going out of the way to help the Anil Agarwal group. The government is also examining the option of approaching the judiciary against the decision of the ministry of environment and forests,” said a minister close to the chief minister.

During the meeting with the state government officials, the Vedanta representatives have pointed out that according to the memorandum of understanding, it was the duty of the state government to provide bauxite to the company. The MoU makes it binding on the state to provide 150 million tonnes of the mineral to the Lanjigarh plant.

The Lanjigarh plant has been operating with bauxite from Jharkhand and Chhattisgarh since August 2007. Vedanta had commissioned its plant hoping that the Centre would clear its proposal to mine Niyamgiri Hills, which would have helped the company expand its production capacity from 1 million tonnes to 6 million tonnes.

The Congress, which has been desperately looking for an issue to embarrass the chief minister, appeared to be determined to oppose any move to grant any bauxite mine to the Vedanta group.

Sensing the move of Vedanta, the Congress and the Gandhamardan Suraksha Samiti today made it clear they would oppose “any move to give the hills to any private individual for mining purposes”.

Senior Congress leader Narasingh Mishra and Samiti convener Pradeep Kumar Purohit said they had “specific information” that the state government was planning to hand over the Gandhamardan hills for mining.

Former law minister Mishra gave three specific reasons for opposing the project. “The popular sentiment is against the Gandhamardan hills being mined. There are many shrines in the region and people have religious sentiments associated with the place. Besides, there are many rare plants in the hills,” Mishra said.


The Telegraph, 30 August, 2010, http://www.telegraphindia.com/1100830/jsp/nation/story_12872465.jsp


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