By IANS
New Delhi : The Supreme Court Friday declined permission to global mining and metals major Vedanta to go in for Bauxite mining in Lanjigarh area of Kalahandi district of Orissa.
Refusing permission to begin mining, a special forest bench, headed by Chief Justice K.G. Balakrishnan, said: “We are not inclined to approve of the project in its present form.”
The bench, which included Justice Arijit Pasayat and Justice S.H. Kapadia, also cited Vedanta’s antecedent of having been blacklisted by Norway for violation of labour laws there as one of its key reasons for denying permission for mining.
It said the company had also not revealed in its affidavit the number of people it would employ in mining operations in the region if allowed to go ahead with mining of the ore spread over 630 hectares of forest in Niyamgiri hills.
The Khautua London-based mining major Vedanta Alumina in a joint venture with Indian firm Sterlite Industries had proposed to set up an alumina refinery with an investment of $800 million in Orissa and had also promised to invest $1.12 billon in the region for its development.
Reacting to the judgement, Vedanta Resources said it was awaiting a copy of the same to abide by the directions and conditions set out by the Supreme Court.
“We are committed to the cause of bringing social upliftment through responsible industrialisation and creating employment opportunities in the state of Orissa,” the company said in a statement.
The bench, while dismissing Vedanta’s application, also took note of the fact that the firm was not a subsidiary of Sterlite Industries India Ltd but one of its associates and was hence free to withdraw from the venture when it wanted.
In its ruling, the court, however, said that it was prepared to consider an application from Sterlite Industries for bauxite mining in the region subject to certain conditions stipulated by it in its ruling.
As per the conditions the company needed to deposit 5 percent of its profit with the Government of Orissa and needed to give details of the jobs it would provide to people, especially the tribals living in abject poverty there who were likely to be deprived of their land following the approval of the project.
The court also showed concern about the possible degradation of environment in the region, saying: “Sustainable development cannot deny the future generations its dues.”