File affidavit on Niyamgiri SPV, says SC

The Pioneer, May 10, 2008
Pioneer News Service | Bhubaneswar

The Supreme Court on Friday asked the State Government to file an affidavit on the constitution of the Special Purpose Vehicle (SPV) to take up developmental activities near Niyamgiri.

The apex court has desired Sterlite Industries, the flagship company of Vedanta Resources PLC in India, duly enlisted on the Indian stock market to be a part of the SPV for mining at Niyamgiri and Scheduled area for development at Lajigarh, where the company's alumina refinery is located.

The Orissa Mining Corporation, State Government and Sterlite Industries will be part of the SPV. Earlier in its judgement, the Supreme Court had asked for the constitution of the SPV. But it never said 'no' to bauxite mining at Niyamagiri.

The court has only desired that instead of Vedanta Aluminium Limited, its associate company Sterlite Industries India Limited (SIIL), can take up the mining project in collaboration with Orissa Mining Corporation (OMC), subject to compliance with certain conditions laid down by them.

This is because, the apex court feels that Sterlite Industries, listed with Indian stock exchanges and having sound financial credentials, is in a better position to do justice to the project and subserve the developmental needs of that tribal majority area rather than Vedanta Aluminium, which is a relatively new entity and whose financial standing has not yet been established.