Environment Ministry says no to Vedanta

The Ministry of Environment and Forest (MoEF) has rejected permission for the Anil Agarwal promoted Vedanta mining project in Orissa. In a statement, the ministry has said that "the forest clearance for Vedanta stands rejected". Taking a stringent view on reports of violation of forest laws, the ministry has also decided to issue notice to the mining major for its alumina refinery. The Environment ministry has said that it is examining penal action against Vedanta for violating laws.

On Monday, the Orissa Chief Minister Naveen Patnaik had met the PM in the wake of Environment Ministry appointed N C Saxena Committee's adverse remarks on Posco and Vedanta projects. The Saxena panel had found serious violations in the provisions of environmental clearance and the Environment Protection Act by Vedanta.

The NC Saxena Committee, appointed by the MoEF, had accused the Orissa government of violating at least two acts, Forest Conservation Act and Forest Rights Act, while recommending the name of Vedanta for forest diversion proposal and environmental clearance required for starting mining activities at ecologically fragile Niyamgiri hills in Orissa's Kalahandi-Rayagada districts.

The N C Saxena committee was set up to look at the implementation of forest legislation by Vedanta Aluminum and the committee found that the company has violated all forest act norms in active collusion with state officials.

For Vedanta, the denial of approval is seen as a major setback as it had already lined up investments of over Rs. 35,000 crore for its projects in Orissa.