By IANS
New Delhi : Citing ethical reasons, Norway has directed its government pension fund to sell shares of metals and minerals major Vedanta Resources Plc, owned by an Indian-born, and not to invest in it further.
The ministry has also decided to exclude Vedanta’s two listed subsidiaries, Sterlite Industries Ltd and Madras Aluminium Co, from the investment universe.
The exclusion was based on a recommendation from the fund’s Council on Ethics, which said the fund could contribute to severe environmental damages and serious or systematic violations of human rights by investing in the company.
Vedanta, owned by Anil Agarwal, is a London stock Exchange-listed metals and mining company with major interests in mining and production of copper, aluminium and zinc in India.
“We cannot hold shares in such a company,” said Norway’s Minister of Finance Kristin Halvorsen in a statement released in Oslo.
Responding to the exclusion, Vedanta’s official spokesperson Tarun Jain said in an email to IANS: “We follow world-class standards for environment and safety practices at all our plants. Vedanta Resources absolutely rejects any suggestion of causing damage to people and the environment.
“At Vedanta Resources, we believe in sustainable development and are committed to effective management of health, safety, environment and community development as an integral part of our business. The impact of our investment in some of the world’s poorest regions has been remarkable and acknowledged,” Jain said.
The Council on Ethics examined four Vedanta subsidiaries that operate in India: Sterlite Industries, Madras Aluminium Co, Bharat Aluminium Co and Vedanta Alumina. Vedanta holds a majority share in all these companies.
According to the council’s assessment: “The allegations levelled at the company regarding environmental damage and complicity in human rights violations, including abuse and forced eviction of tribal peoples, are well founded.”
In the council’s view the company seemed to be lacking the interest and will to do anything about the severe and lasting damage that its activities inflict on people and the environment.
The council’s recommendation was based on surveys and investigations conducted or commissioned by Indian authorities, reports from national and international NGOs, articles in Indian and international newspapers, and documentary films.
In addition, the council commissioned its own studies by Norwegian, British and Indian consultants.