Firm bad for Norway, good for Orissa?

The Times Of India,Nov 15,2007

NEW DELHI: The Norwegian government's dramatic decision last week to expel Vedanta from its "investment universe" is more than a loss of face to the British metal and mining company of Indian origin.

It created a piquant situation for the Supreme Court, which had just a few days earlier reserved its verdict on petitions challenging a Vedanta aluminium project in Orissa on the very grounds on which Norway had taken action against the company.

On the basis of an inquiry done by its ethics council, Norway held on November 6 that "the allegations levelled at the company regarding environmental damage and complicity in human rights violations, including abuse and forced eviction of tribal people, are well founded."

Norway's indictment, however, runs contrary to the indications given so far by the Supreme Court in favour of diverting 660 hectares of forest land for Vedanta's proposal of bauxite mining on top of Niyamgiri Hills in the Kalahandi district of Orissa.

To begin with, the apex court had ignored the recommendation made by its own Central Empowered Committee two years ago to stay the construction of an alumina refinery by Vedanta at Lanjigarh next to the proposed site of bauxite mining. The refinery has since been fully constructed and is awaiting bauxite from Niyamgiri Hills.

At the last hearing of the case on October 26, the bench consisting of CJI K G Balakrishnan and Justices Arijit Pasayat and S H Kapadia brushed aside a list of alternative mining sites proposed by empowered committee to save, among other things, the flora and fauna on Niyamgiri Hills and Vamsdhara and Nayavali rivers originating from there.