Orissa moves SC against govt order to shut Vedanta project

The Orissa government on Tuesday moved the Supreme Court, challenging the Centre's decision to disallow bauxite mining in the Niyamgiri Hills for Vedanta's Rs 5,000-crore alumina refinery at Lanjigarh in Kalahandi district.

The state government's move came six months after Union environment minister Jairam Ramesh on August 24 last year withdrew the permission to Orissa Mining Corporation (OMC) to mine the eco-sensitive Niyamgiri Hills, home to the primitive Dongaria Kondh tribals.

On October 21, Ramesh followed it up by rejecting Vedanta's application for expanding its refining capacity from one million to six million tonnes per annum and captive power plant from 75MW to 300MW.

Orissa steel and mines minister Raghunath Mohanty told TOI on Tuesday OMC had moved SC on mining the Niyamgiri Hills. He refused to divulge details.

Sources said the state government had challenged the Centre's decision to re-examine issues the Supreme Court had earlier dealt with and settled. The SC in August 2008 gave the green signal to mine Niyamgiri through an OMC-Sterlite Industries joint venture. Sterlite is a Vedanta group arm.

But the Centre, after taking advice from the attorney-general, deputed two committees headed by retired bureaucrats N C Saxena and Meena Gupta to study forest law violations and decided not to allow mining.

Officials said the state government had three options: To obey the Union government order; to approach the Centre seeking review of the decision or move SC against the environment ministry directive.

If the state government accepts the central order, it has to provide 150 million tonne of bauxite to Vedanta in tune with its MoU signed in 2004. The state government moved SC seeking relief, like it has done in the Posco and Polavaram cases, an officer said.

Earlier, the Anil Agarwal-led Vedanta Aluminum Limited moved Orissa high court, seeking quashing of the Centre's decision stalling expansion of its refinery and captive plant at Lanjigarh. Last week, the HC completed hearing in the matter, but reserved its judgment. （The time of India)