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Orissa High Court asks MoEF to justify its stand on Vedanta expansion

Wednesday, Jan 12, 2011
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BHUBANESWAR: The Orissa High Court has directed the Union ministry of environment and forests to justify the ministry’s earlier decision to deny permission to Vedanta Aluminium to expand its refinery capacity at Lanjigarh. In an order passed on Monday , the high court said the environment ministry’s reply should be ready by the end of January.


The high court took up 12 public interest litigation cases along with Vedanta Aluminum’s writ, questioning the environment ministry’s October 20 order cancelling an earlier clearance given to Vedanta Aluminum. The Anil Agarwal-controlled company had proposed to expand capacity at its one million tonne refinery, to six million tonnes.


But the work was stopped by the environmental ministry on grounds of inadequate clearances. At least 12 leading tribal organisations from Kalahandi and Rayagada districts had moved the Orissa High Court challenging the ministry’s order to halt the expansion, saying the move would affect their livelihood.


In the public interest litigation filed in the high court, the tribal organisations said the denial of permission to the refinery project impacted the local people who are directly or indirectly dependent on the . 10,000-crore project for their survival. Sundaram, a senior lawyer from the Supreme Court, appeared for Vedanta Aluminum .


Vedanta has said the ministry’s October 20 order was in direct contrast to an earlier circular issued by the ministry itself. The circular said that all projects where action had been taken under Section 5 of Environment Protection Act, should be considered for environmental clearance provided the company board gives in writing that a similar mistake shall not be repeated.

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