The Environment Ministry on Tuesday rejected a plan by India-focused mining group Vedanta Resources Plc to mine bauxite in an eastern state, saying it violated forest laws.
The decision pertains to one mining site in Orissa where it runs an alumina refinery on bauxite imported from elsewhere in India which keeps the firm's operation costs high. Vedanta is among many top firms such as South Korea's POSCO whose projects are delayed as a proactive environment ministry tightens rules that often brings it in conflict with other ministries pushing for rapid industrialisation.
"There have been serious violations of environment protection acts," Environment Minister Jairam Ramesh told reporters, while rejecting Vedanta's mining plans that could destroy heavily forested hills sacred to local tribal populations.
"There is no emotion, no politics, no prejudice ... I have taken the decision in a purely legal approach. That these laws are being violated."
The environment ministry's decision comes after a government panel said last week giving permission to Vedanta would violate green guidelines and may have a serious impact on security, referring to a worsening Maoist insurgency that feeds partly off the resentment of people displaced by large industrial projects.
Vedanta is already facing regulatory hurdles in its bid for control of Cairn India, a potential deal valued at $9.6 billion that can give the group led by UK-based billionaire Anil Agarwal a slice of India's oil reserves.
Vedanta says no one will be displaced as the mining site is located in an uninhabited area and the project will help lift the poor district out of poverty.
Source http://www.hindustantimes.com/Jairam-Ramesh-says-no-to-Vedanta-project-in-Orissa/H1-Article1-591035.aspx
The decision pertains to one mining site in Orissa where it runs an alumina refinery on bauxite imported from elsewhere in India which keeps the firm's operation costs high. Vedanta is among many top firms such as South Korea's POSCO whose projects are delayed as a proactive environment ministry tightens rules that often brings it in conflict with other ministries pushing for rapid industrialisation.
"There have been serious violations of environment protection acts," Environment Minister Jairam Ramesh told reporters, while rejecting Vedanta's mining plans that could destroy heavily forested hills sacred to local tribal populations.
"There is no emotion, no politics, no prejudice ... I have taken the decision in a purely legal approach. That these laws are being violated."
The environment ministry's decision comes after a government panel said last week giving permission to Vedanta would violate green guidelines and may have a serious impact on security, referring to a worsening Maoist insurgency that feeds partly off the resentment of people displaced by large industrial projects.
Vedanta is already facing regulatory hurdles in its bid for control of Cairn India, a potential deal valued at $9.6 billion that can give the group led by UK-based billionaire Anil Agarwal a slice of India's oil reserves.
Vedanta says no one will be displaced as the mining site is located in an uninhabited area and the project will help lift the poor district out of poverty.
Source http://www.hindustantimes.com/Jairam-Ramesh-says-no-to-Vedanta-project-in-Orissa/H1-Article1-591035.aspx
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