Uncertainty over Vedanta hits livelihood

Times of India, Feb 3, 2011
BHAWANIPATNA: Uncertainty over Vedanta's Lanjigarh project has thrown a spanner into the earnings of small-time traders. Upset they have threatened to commit suicide.


These include representatives of the contractors' association, labourer's association, truck owners association and association of Small Enterprenuers of Lanjigarh, Biswanathpur, Ambodala and Muniguda area.

These businessman had taken loans to buy vehicles, build market complexes and houses, which would have found takers once the project came up. But with the ministry of environment and forests scrapping bauxite mining and stopping the expansion of Vedanta, there is no such hope now. The plant is also reluctant to engage them.

"We have been facing uncertainties since December 31, 2010 after the senior management of VAL informed that Vedanta was going through a tough time with refinery incurring heavy losses of Rs 500 to 600 crores," member of the Contractor's Association Binod Gaud said.

VAL authorities claimed that following environment ministry's order, the corporate-backed development work in Lanjigarh has been hit. "The fate of many development projects aimed at the welfare of the local people have been stalled following the decisions," a spokesman of VAL said.

Already around 10,000 labourers have lost their jobs followed by violent protest inside the administrative building of VAL.

The traders have also met the Kalahandi collector in this regard. "We met the Kalahandi collector and handed over a memorandum mentioning our plight, particularly the threat to our livelihood," said Mahesh Agrawal, one of the traders.