Vendata expects quick nod for Orissa project

Business Standard, Nov 23, 2009
Mining giant Vedanta Resources today said it expects speedy clearance from the Centre for bauxite mining at the Niyamgiri hills in Orissa after the state government claimed the project would not cause any displacement of tribals.
"I hope the statement of the minister would expedite the process (of grant of the mining lease)," Vedanta Resources Chief Executive Officer M S Mehta told PTI in a telephonic interview.
Orissa Steel and Mines Minister Raghunath Mohanty informed the Assembly last week that "not a single family of Dangaria Kandha tribe lived at the proposed mining area of Lanjigarh, located between Rayagada and Kalahandi districts" and there would be no displacement.
The company is understood to be awaiting final clearance from the Union Environment Ministry.
Vedanta Resources will enter into a joint venture with Orissa Mining Corporation for mining bauxite at the Niyamgiri hills to feed its upcoming alumina refinery at Lanjigarh in the state.
The proposed mining project has reportedly been facing protest from locals as well as international NGOs over allegation of tribal displacement.
Mehta said, "The Minister's clarification should settle the undesirable and malicious debate which has been taking place at the behest of vested parties."
"There have been misplaced concerns about displacement. All the independent environment-impact studies have revealed that there would be no displacement due to our project," Mehta said.
The project, which would start within four months of final clearance from the Centre, would bring $2 billion investment in a phased manner in "one of the poorest areas" in the country, he said.
"The $2 billion has the potential to transform the socio-economic condition of the people of the poor region."
Asked if the global company is disappointed over the regulatory delays to commence the project, Mehta said, "We feel sorry for the locals as development of the region is getting delayed. The approval has taken longer than expected time but is progressing along the channel."
The green bench of the Supreme Court last year gave approval to the project along with that to Rs 54,000-crore steel project of Posco in the state.
Vedanta Resources has planned an investment of $8 billion (around Rs 37,000 crore) in the state across its projects in the power and aluminium sector.
However, there are Dangaria' and 'Kutia' Kandha population living on periphery of the Niyamgiri hills and steps are being taken towards there welfare, Mehta said.