Tuesday, August 24, 2010

Indian Ministry of Environment rejects Vedanta mining project

On August 24, 2010, the Ministry of Environment and Forests (MOEF), refused to give permission to the Orissa Mining Corp.’s (OMC) proposal for the bauxite mine at Niyamgiri hills in Orissa after the report submitted by Dr. N C Saxena committee on August 20, 2010.

The report revealed that Vedanta violated some laws. It says that the company occupied 2.17 acres of land without getting clearance and they also occupied 26 hectares of forest land without any clearance under the Forest Conservation Act.

However, Vedanta Resources PLC said that there had been no violation of regulation at the Lanjigarh Alumnia refinery.

The decision of the center made Orissa Chief Minister, Naveen Patnaik, very unhappy. Over rejecting Vedanta group’s proposed $1.7 billion bauxite mining project, Mr. Patnaik said that Environment Minister Jairam Ramesh did not give any indication of the decision when he met him in Delhi.

Regarding the proposal, Mr. Patnaik said, “These investments in Orissa were meant to generate jobs for the people and add to the state’s revenue. Therefore, they should be given go ahead,”

Mr. Patnaik told reporters that his government would undertake a “detailed investigation” of the reasons behind Environment and Forest ministry’s refusal to provide clearance to the project and take necessary steps.

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