E-paper, Economic Times, March 23, 2010 (Thanks to Shri Sandip K. Dasverma for sharing in focusorissa)
Rohini Singh & M Rajshekhar NEW DELHI
PLANS by Vedanta Resources to mine bauxite in Niyamgiri in Orissa, already delayed by vehement protests from non-governmental organisations, seem likely to suffer further damage-quite possibly terminal-as the Congress reaches out to India's tribal population, sections of which have come under the influence of the grand old party's arch rival BJP while others have fallen under the sway of Maoists.
A top Congress leader told ET that London-listed Vedanta Resources would have to do much more than simply convince the central government that its project will add value greater than what it will take away. Instead, the business plans of the Anil Agarwalowned company have become part of a larger narrative as the Congress-led UPA government changes its mining policy, bringing it in line with the party's position on the environment and its mantra of inclusive growth.
"The facts of the case are such that Vedanta shouldn't have been given clearance in the first instance," says Congress general secretary Digvijay Singh. Mr Singh said the party would insist that India's tribal communities- which figure disproportionately among India's poorest-have the right to use resources in areas where they reside, a position spelt out by the Forest Rights Act (FRA).
The Act, passed in 2006, is intended to benefit the millions, mainly members of India's scheduled tribes, who live in or near forests. ET had reported that a government-appointe d committee had claimed that the FRA had not been implemented in the areas where the bauxite project was coming up.
Sonia's pet Act
THE Forest Rights Act is a favourite legislation of Congress president Sonia Gandhi and a talisman of the party's commitment to the poorest of the poor. A mining licence should not be given till it was implemented, the committee had suggested.
Vedanta says the Orissa government has told the Centre that it had complied with the Act. "The ministry of environment and forests (MoEF) had asked the government of Orissa for conformation of compliances with the Forest Conservation Act 1980 and Scheduled Tribe and Other Forests Dwellers (Recognition of Right) Act 2006, and the government of Orissa has conformedcompliance in this regard as well. When we have complied with all statutoryrequirements as per all the regulations, we expect MoEF to give the final clearance," it said in a statement.
A historian, who has written extensively on the environment, told ET that the Congress as a party is also very conscious of its legacy of protecting the environment. This was all the more because the party's storied leaders had initiated some of the measures undertaken in India to conserve India's ecology. Indira Gandhi famously started Project Tiger and piloted the Forest Conservation Act, which gave the Centre a say in the use of forest land.
During the last tenure of the UPA, the environment ministry was in the hands of the DMK, its coalition partner. In the process, the party had lost control over the ministry. That's the reason, says the historian, that Jairam Ramesh was sent to the ministry this time around. "The Congress is taking control and is now repairing its legacy."
Given this backdrop, Vedanta's arguments about job creation in a backward region may not find many takers in the top echelons of the government. But the company has kept plugging away, writing several letters to Mr Ramesh claiming that the project will employ 20,000 people in the region. "This is the only investment in Kalahandi, the most backward district of the country, and will make a significant impact on the socio-economic development of the local population," it wrote to Mr Ramesh last week.
Vedanta says the mining lease belongs not to it but to Orissa Mining Corporation, and that it started building a aluminium refinery only after the Orissa government said it would provide bauxite.
"We wish to clarify that the mining lease belongs to Orissa Mining Corporation and the mining would start only after obtaining necessary permissions. The project has the clearance from the Hon'ble Supreme Court of
India after deliberations of over two years, during which the Hon'ble Court obtained reports from the Wildlife Institute of India and Central Mine Planning & Design Institute, covering all aspects, including water, environment, wildlife, tribal issues, ecology etc. We have also complied with the Hon'ble Court's unique model for development of the local people to ensure inclusive growth-5% of the profit or Rs 10 crore, whichever is higher, for the development of the region. The development work has also started," the company said.
Part of Vedanta's problems seem to be linked to electoral calculations. Adivasis or tribals are crucial for the Congress because the BJP has managed to make considerable inroads among this section. But the welfare of these poverty-stricken communities is also central to the Congress' philosophy of inclusive growth. "At this time, there is rising resentment among the people who are affected by these projects. Why are people attracted to terrorists and Naxals? They get no square meal, no income. If we want to fix the problem, we have to fix the root cause," says mines minister BB Handique."
"Matters can be improved if we have a better sense of justice. It is unnatural justice if only the company is making profits. On the whole, the party's thinking on mining is changing. The industry affects people and wherever natural justice is denied, there will be trouble. Justice must be seen to be done. We want to handle matters without the people needing to intervene," adds Mr Handique. He was speaking about a new mining policy that the government was drafting and not about the Vedanta project.
More than a year ago, Congress general secretary Rahul Gandhi had visited Niyamgiri. He had skipped the Vedanta project and instead spent time with the tribals of that region. "Personally I am against mining at Niyamgiri hills as it would destroy the environment of the area, and affect water sources, livelihood sources and culture," Mr Gandhi had said then while also stating that he isn't against industrialisation. A top Congress leader also told ET on the condition of anonymity that Mr Gandhi has indicated that in the case of Niyamgiri, the concerns of the local tribals should not be ignored. All this makes the Niyamgiri issue more significant for the Congress.
Mr Ramesh has shown within a year that it means business. It released a circular in July last year stating no industrial project will be cleared till the Forest Rights Act has been completely implemented in the affected area. Then a few weeks ago, after complaints about rampant mining in Goa, it imposed a moratorium on all mining proposals from the coast state. The state will have to formalise a new mining policy for new proposals to be considered. It has also suggested a study to gauge the environmental impact of mining projects in the state.
The MoEF has started to return projects for reconsideration, a trend that wasn't seen earlier when the DMK controlled the ministry. A senior MoEF official told ET on condition of anonymity that this has come as a surprise to industry. "In the last five years, projects have always been cleared by the environment ministry. Now, files are being returned with queries from us asking whether certain projects can be relocated." And it's just not the environment ministry that has been approaching mining projects such as that of Vedanta's with caution. Mr Handique also told ET that the new mining policy being put together by the central government will give weightage to a company's record of relief and rehabilitation to project-affected people when issuing mining licenses. Companies will also be told to restore greenery once they are done with mining and will have to set aside a part of the profits for the benefit of the local people.
Whether Vedanta's promises of job creation or claims of making a significant impact on the local population manage to convince the Congress leadership remains to be seen. But it seems to have its task cut out.
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