Jairam Ramesh changed rules for MP Navin Jindal’s plant

DNA, March 18, 2011
The ministry of environment and forests (MoEF) seems all set to add to the scams and scandals surrounding the UPA government at the Centre thanks to a controversial clearance given to Congress MP Navin Jindal’s proposed steel and power plant in Orissa.


Documents with DNA show that the MoEF issued a circular to change a few words of the guidelines of the Forest (Conservation) Act 1980 only to allow the withdrawal of a showcause notice issued to the Jindal project.

This notice, that made headlines when it was issued in November 2010, asked why the earlier issued environmental clearance may not be quashed because Jindal had started construction at the site before the forest clearance — the supplement to the mandatory environment clearance — was given.

Documents show that the provision of the Forest Act that was quoted by the MoEF to legitimise the transgressions of Jindal and withdraw the show cause notice was created only on January 6, 2011 — two months after the showcause notice was issued.

Documents also show that the provision (made through a circular) was scrapped on 17 February, 2011 — exactly a week after the notice to Jindal was withdrawn.

This makes it clear that the circular was issued purely for the benefit of Congress MP Navin Jindal’s project alone.

Jindal Steel & Power (JSPL) had filed for environmental clearance for a 6 million tonne steel plant and a medium-sized integrated power plant in Kerjang, in Anjul district of Orissa in 2006.

The firm got environmental clearance in 2007, with the condition that no development should start till the other half of that clearance, a ‘forest clearance’, was also granted.

But Jindal started construction before the forest clearance was obtained and this was pointed out by Biswajit Mohanty, wildlife activist and member of the National Board for Wildlife, to Environment Minister Jairam Ramesh last October.

A month later, the MoEF issued the showcause notice to Jindal.

However, on January 6, 2011, the MoEF issued a circular that changed certain words in the Forest Act that legalised the violations and weakened the case against Jindal.

Documents with DNA show that the original guidelines of the Forest Act, which were in force when the showcause notice was issued to Jindal for breaching the conditions of environmental clearance, said: “work should not be started” till the project gets the requisite forest clearance.

However, in its circular, the MoEF changed this phrase to: “it is advisable that work should not be started” till forest clearance is granted.

After the circular was issued, Jindal officials pointed out to the MoEF that its own circular indicated that the provision was not binding on them. Based on this argument, the MoEF withdrew the showcause notice to the Jindal project on Feb 10, 2011. Seven days later, the circular was scrapped.

To a question in Parliament as to how many projects were cleared during the time the circular was in existence (a little over a month), Ramesh pointed out that only one project had been cleared: Jindal’s Angul project.

“This is all very, very fishy,” says Mohanty, a noted conservationist known for his contribution to saving Orissa’s sea turtles. “This case needs to be probed. You can’t bring in a circular to help just one company and then withdraw it and not let any other company take advantage of it,” he says.

Mohanty, who maintains Ramesh is the best environment minister India has ever had, says the ministry’s actions are starting to smack of arbitrariness. “You can’t have one yardstick for Vedanta (Resources) and another where a ruling party MP is involved.”

This whole incident indicates that Ramesh, who has a clean reputation otherwise, has his limitations when faced with powerful groups within his party.

Jairam Ramesh did not respond to request for comments on the matter.