Monday, September 20, 2010

Orissa mulls three options on Niyamgiri

The Financial Express, Sept 17, 2010
Bhubaneswar: Even though Vedanta Resources has initiated the process of saving its plant from closure, the Orissa government is yet to take a decision on the revival of the Niyamgiri bauxite mines in Kalahandi district.
Acting on the report of the Saxena Committee and the recommendation of the Forest Advisory Committee, the Union ministry of environment and forest (MoEF) withdrew the forest and environment clearance accorded to Niyamgiri mines which had been granted to the state-owned Orissa Mining Corporation (OMC).
On August 24, the MoEF, which had accorded Stage I forest clearance for the Niyamgiri mines, rejected the state government’s proposal for giving Stage II forest clearance. The MoEF denied the clearance on the ground that the Forest Conservation Act, the Environment Protection Act and the Forest Right Act had been violated.
“We are yet to take a decision about our future course of action on Niyamgiri,” said Orissa steel & mines minister Raghunath Mohanty. “We have three options,” he added, elaborating, “either we will again approach the MoEF for reconsideration of its decision, or we may go to the Supreme Court challenging the MoEF’s decision, or we may abandon the mines.”
However, sources in the OMC said serious thought is being given to approach the MoEF and clarify that the ground on which the forest clearance has been withdrawn is not justified. Since the Niyamgiri bauxite mines project is being implemented as per the guidelines of the Supreme Court, the state government is also planning to move the apex court challenging the MoEF decision.
Even though the lease agreement for the Niyamgiri mines, which promises about 78 million tonne of bauxite deposits, is yet to be signed with the OMC, the latter has firmed up a joint venture with Sterlite, a group company of Vedanta Resources, for operation of the mines.
The joint venture has been approved by the Supreme Court, and the joint venture company has already invested Rs 110 crore for the periphery development and other welfare works in the mining areas.

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