In an unprecedented decision, minister of state for environment and forests Jairam Ramesh has refused to give environmental clearance to the bauxite project proposed by industrialist Anil Aggar-wal’s Vedanta Group.
Citing serious violations of the Environment Protection Act (EPA) and Forest Rights Act, Mr Ramesh declared on Tuesday that “the project stands rejected”.
The decision was taken on the recommendations of the Forest Advisory Committee and the four-member N.C. Saxena Committee which had found gross violations on the ground. Following this, Mr Ramesh said that Sterlite India, part of the $7.9-billion Vedatna Group, which has a joint venture agreement with the Orissa Mining Corporation, cannot be given Stage Two clearance for bauxite mining in the Niyamgiri hills in Orissa’s Lanjigarh, Kalahindi and Rayagadha districts.
This cancellation means more trouble for Vedanta Resources, which faces regulatory hurdles in its acquisition of Cairn India in order to secure a share of the oil market.
“There have been no emotions, no politics and no prejudice in Vedanta’s case... The decision is purely on the basis of a proper legal approach,” the minister said.
In a move spelling further problems for Vedanta, Mr Ramesh said a showcause notice had also been issued on why clearance for the proposed aluminium refinery at Lanjigarh, set to generate one million tonnes a year, should not stand cancelled given the company’s gross environmental violations.
In Bhubaneswar, meanwhile, Orissa chief minister Naveen Patnaik appeared visibly disappointed and said he hoped there was “no politics” behind the environment ministry’s rejection. He also noted that when he met Mr Ramesh in New Delhi on Monday, the minister gave no indication that such a rejection was imminent.