Vedanta’s projects in Orissa have faced adverse judgment from the Supreme Court and mounting protests from the locals. Despite such handicaps Vedanta Chairman Anil Agarwal claimed in Orissa after meeting the state’s Chief Minister Naveen Patnaik that the projects were progressing as per schedule.
The Anil Agarwal Foundation, promoted by Agarwal, is setting up a multi-disciplinary world-class Vedanta University near the Konark-Puri marine drive with an investment of Rs150 billion ($3.75 billion) in phases. Vedanta Alumina, part of the Vedanta Resources (Sterlite) Group, is building an alumina refinery with an investment of $800 million in the state’s Kalahandi region. It is also building an aluminum smelter project costing Rs.70 billion in Jharsuguda district. The Supreme Court in a judgment in end-2007 threw out Vedanta Alumina Ltd (VAL) from the Rs 4,000-crore controversial Lanjigarh bauxite mining project saying sensitive national assets could not be placed in the hands of companies with doubtful credibility. In shutting out VAL from the project, red-flagged by environmentalists on the ground that it would severely hurt the eco-sensitive Niyamgiri hills in Orissa's Kalahandi district, the court took into account the Norway government's decision to black-list its controlling company, UK-listed Vedanta Resources, for several reasons, including poor labour handling.
The project started as a joint venture between Vedanta Alumina Ltd and Sterlite Industries India Ltd (SIIL), both Vedanta Group companies, and Orissa Mining Corporation (OMC) had got all clearances from ministry of environment and forests but the statutory Central Empowered Committee (CEC) had raised several green objections to the project. Even though VAL lost it, Vedanta's other associate company SIIL still remains in business as far as the Orissa alumina project is concerned.
Agarwal however claimed that his refinery project in Lanjigarh had been one of the best projects in the world.
The project received flak for violating commitments on relief and rehabilitation, destroying the eco-system and also consuming huge quantum of water from the Hirakund dam. T Farmers living in the command area of Hirakud reservoir have been agitating against sharing the water with industries. They have destroyed the infrastructure built by industries to source water from the reservoir. After the farmers denied water from the Hirakud reservoir for the project, Vedanta was relying on water from a small rivulet, Veden, for its project works. However, the locals have stopped that supply source, too. The villagers have been complaining that they were not getting water as Vedanta was sucking up a huge quantity from the rivulet. The project is also polluting the river Bangsadhara. The opponents claim that the company has enticed politicians, bureaucrats and contractors in its fold.
The Supreme Court said in its judgment that in granting permission to projects like the alumina plant and mining operations in Lanjigarh, the state governments should scrupulously follow the principle of sustainable development, which meets the need but protects the environment for future. The ouster of VAL from the project was because of its dithering commitment to give permanent employment to local tribals and the scheduled caste coupled with the indictment it received from the Norwegian government
Due to the water problem, commissioning of the aluminum smelter and the CPP is likely to be delayed. The first phase of the aluminum smelter and the CPP is almost complete and ready for commissioning. However, with no water from the Hirakud reservoir, the commissioning could not take place as scheduled. Media reports suggest that the commissioning is likely to be delayed by about a year since the issue of water from the Hirakud reservoir was not likely to be resolved before the general elections early next year. Recently, Agarwal said at Bhubaneswar that the company was ready to invest Rs 30 crore to make temporary measures to source water from the downstream of the reservoir to avoid any conflict with the farmers’ interests. However, engineers working in the smelter and CPP say that the water guzzling units cannot be commissioned depending on interim arrangements of water sources. Unless steady water supply from the Hirakud reservoir assured, it would not be prudent on the part of the company to commission the smelter and the CPP, they added.
Agarwala however was optimism personified. He had dismissed the allegations of any wrongdoing. He maintained that his units would not touch a drop of water meant for farmers. Regarding rehabilitation of the affected people, he said: “We will follow R&R (resettlement and rehabilitation) policy of the Orissa government for all our projects.” He described Orissa’s R&R policy a Meanwhile it is business as usual for Vedanta. The company is set to export bauxite from the deep water port with the setting up of 3 silos. Kakinada Sea Port Limited, in association with Chettinad Port Limited, had constructed these silos at an investment of Rupees 80 crore. Around 20,000 tonnes of bauxite powder have already been stored in the silos. The first vessel was likely to carry the bauxite powder in the first week of June 2008.
The Anil Agarwal Foundation, promoted by Agarwal, is setting up a multi-disciplinary world-class Vedanta University near the Konark-Puri marine drive with an investment of Rs150 billion ($3.75 billion) in phases. Vedanta Alumina, part of the Vedanta Resources (Sterlite) Group, is building an alumina refinery with an investment of $800 million in the state’s Kalahandi region. It is also building an aluminum smelter project costing Rs.70 billion in Jharsuguda district. The Supreme Court in a judgment in end-2007 threw out Vedanta Alumina Ltd (VAL) from the Rs 4,000-crore controversial Lanjigarh bauxite mining project saying sensitive national assets could not be placed in the hands of companies with doubtful credibility. In shutting out VAL from the project, red-flagged by environmentalists on the ground that it would severely hurt the eco-sensitive Niyamgiri hills in Orissa's Kalahandi district, the court took into account the Norway government's decision to black-list its controlling company, UK-listed Vedanta Resources, for several reasons, including poor labour handling.
The project started as a joint venture between Vedanta Alumina Ltd and Sterlite Industries India Ltd (SIIL), both Vedanta Group companies, and Orissa Mining Corporation (OMC) had got all clearances from ministry of environment and forests but the statutory Central Empowered Committee (CEC) had raised several green objections to the project. Even though VAL lost it, Vedanta's other associate company SIIL still remains in business as far as the Orissa alumina project is concerned.
Agarwal however claimed that his refinery project in Lanjigarh had been one of the best projects in the world.
The project received flak for violating commitments on relief and rehabilitation, destroying the eco-system and also consuming huge quantum of water from the Hirakund dam. T Farmers living in the command area of Hirakud reservoir have been agitating against sharing the water with industries. They have destroyed the infrastructure built by industries to source water from the reservoir. After the farmers denied water from the Hirakud reservoir for the project, Vedanta was relying on water from a small rivulet, Veden, for its project works. However, the locals have stopped that supply source, too. The villagers have been complaining that they were not getting water as Vedanta was sucking up a huge quantity from the rivulet. The project is also polluting the river Bangsadhara. The opponents claim that the company has enticed politicians, bureaucrats and contractors in its fold.
The Supreme Court said in its judgment that in granting permission to projects like the alumina plant and mining operations in Lanjigarh, the state governments should scrupulously follow the principle of sustainable development, which meets the need but protects the environment for future. The ouster of VAL from the project was because of its dithering commitment to give permanent employment to local tribals and the scheduled caste coupled with the indictment it received from the Norwegian government
Due to the water problem, commissioning of the aluminum smelter and the CPP is likely to be delayed. The first phase of the aluminum smelter and the CPP is almost complete and ready for commissioning. However, with no water from the Hirakud reservoir, the commissioning could not take place as scheduled. Media reports suggest that the commissioning is likely to be delayed by about a year since the issue of water from the Hirakud reservoir was not likely to be resolved before the general elections early next year. Recently, Agarwal said at Bhubaneswar that the company was ready to invest Rs 30 crore to make temporary measures to source water from the downstream of the reservoir to avoid any conflict with the farmers’ interests. However, engineers working in the smelter and CPP say that the water guzzling units cannot be commissioned depending on interim arrangements of water sources. Unless steady water supply from the Hirakud reservoir assured, it would not be prudent on the part of the company to commission the smelter and the CPP, they added.
Agarwala however was optimism personified. He had dismissed the allegations of any wrongdoing. He maintained that his units would not touch a drop of water meant for farmers. Regarding rehabilitation of the affected people, he said: “We will follow R&R (resettlement and rehabilitation) policy of the Orissa government for all our projects.” He described Orissa’s R&R policy a Meanwhile it is business as usual for Vedanta. The company is set to export bauxite from the deep water port with the setting up of 3 silos. Kakinada Sea Port Limited, in association with Chettinad Port Limited, had constructed these silos at an investment of Rupees 80 crore. Around 20,000 tonnes of bauxite powder have already been stored in the silos. The first vessel was likely to carry the bauxite powder in the first week of June 2008.
Orissa tribals thank Norway for banning Vedanta investments.
A few days after Norway directed its pension fund to sell all shares of London Stock Exchange-listed Vedanta Resources Plc and not to invest in it further, a delegation of Orissa tribals met Norwegian embassy officials in New Delhi to express their gratitude.A delegation of Dongaria Kondh tribals went and met two representatives of Norwegian finance ministry in the embassy and gifted them two photographs of Niyamgiri Mountain,' said Simon, a supporter of the tribals. Vedanta Alumina Ltd, a subsidiary of Vedanta Resources Plc, has signed an agreement with the Orissa government to set up a bauxite refinery in tribal-majority Kalahandi region. It will mine bauxite ore from the Niyamgiri mountain region for this purpose. Norway's state pension fund has sold around $13 million worth of shares in Vedanta Resources after the fund's ethical council found the mining and minerals giant has caused severe environmental damage and violated human rights.
A Supreme Court-appointed expert committee has said bauxite mining in the region will not only affect human habitation but will also destroy biodiversity. The tribals have now scaled up their protests. They have brought their message to the capital. According to the activists granting of mining rights to Vedanta would affect at least 35 waterfalls and two rivers in the region. It is also bound to destabilise wildlife in the area that includes elephants and rare lizards, besides medicinal plants, they held. 'We need Niyamgiri and Niyamgiri needs us. We have been fighting for nearly four years against industrialisation. If they displace us, then it will lead to a bloodbath in western Orissa,' said Jitu Jakeseka, an affected tribal.
A few days after Norway directed its pension fund to sell all shares of London Stock Exchange-listed Vedanta Resources Plc and not to invest in it further, a delegation of Orissa tribals met Norwegian embassy officials in New Delhi to express their gratitude.A delegation of Dongaria Kondh tribals went and met two representatives of Norwegian finance ministry in the embassy and gifted them two photographs of Niyamgiri Mountain,' said Simon, a supporter of the tribals. Vedanta Alumina Ltd, a subsidiary of Vedanta Resources Plc, has signed an agreement with the Orissa government to set up a bauxite refinery in tribal-majority Kalahandi region. It will mine bauxite ore from the Niyamgiri mountain region for this purpose. Norway's state pension fund has sold around $13 million worth of shares in Vedanta Resources after the fund's ethical council found the mining and minerals giant has caused severe environmental damage and violated human rights.
A Supreme Court-appointed expert committee has said bauxite mining in the region will not only affect human habitation but will also destroy biodiversity. The tribals have now scaled up their protests. They have brought their message to the capital. According to the activists granting of mining rights to Vedanta would affect at least 35 waterfalls and two rivers in the region. It is also bound to destabilise wildlife in the area that includes elephants and rare lizards, besides medicinal plants, they held. 'We need Niyamgiri and Niyamgiri needs us. We have been fighting for nearly four years against industrialisation. If they displace us, then it will lead to a bloodbath in western Orissa,' said Jitu Jakeseka, an affected tribal.
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