Archive for the 'Bauxite' Category

Odisha to expand areas under coffee cultivation to 22,700 hectare by 2021-22 with an investment of Rs 400 crore

Aluminium, Bauxite, Birlas, Coffee development, Ganjam, Kalahandi, Kandhamala, Keonjhar, Koraput, NALCO, New Indian Express, Indian Express, Financial express 4 Comments »

Following are excerpts from a report in ibnlive.com.

The coffee plantation would be taken up in the undivided Koraput district where currently about 1,300 hectares are under cultivation. …

It has been decided to invest the ` 400 crore over a period of 10 years from 2011-12. The ICB would fund ` 35 crore for a programme on organic coffee production in the State. Rest of the funds will be pooled from MGNREGS, Revised Long Term Action Plan (RLTAP) for KBK districts and other schemes.

As per the survey conducted by the Coffee Board, an area of 11,650 hectare in the Koraput, Kalahandi, Ganjam, Phulbani and Keonjhar districts has been found suitable for coffee cultivation.

Public sector industries like Nalco, Hindustan Aluminium Company and a host of private sector enterprises have evinced interest to take up coffee cultivation in about 1,000 acres which is mined for bauxite ore extraction.

 … For Orissa, the Board is implementing a Special Area Programme with the objective of checking ‘Podu’ cultivation, rejuvenating small coffee holdings and expanding coffee plantation in the tribal sector by providing a subsidy of ` l5,000 per hectare.

Besides, the Board is also providing financial assistance for installation of coffee processing units and imparting training to coffee growers on latest coffee husbandry practices and scientific methods of cultivation.

Six hulling units were also supplied under the scheme to the State during 1999- 2000 to process coffee at farm level.

At present, there are about 122 private coffee growers in the Koraput who have taken to commercial cultivation. …

Infrastructure hurdles getting noticed; Some Odisha projects in focus

Aluminium, Anil Agarwal, Bauxite, Business Standard, CENTER & ODISHA, Haridaspur - Paradeep (under constr.), Kalahandi, Talcher - Bimlagarh (under constr.), Vedanta 6 Comments »

In the following excerpts from a report in Business Standard Haridaspur-Paradip and Talcher-Bimlagarh are listed as strategic projects. I hope they are fast tracked.

… Delays in land acquisition and forest clearances continue to stand in the way of completing strategic projects like the 82-km Haridaspur-Paradip line and the 154-km link between Talcher and Bimlagarh, both in Orissa. While the first project is to give good port access to units in the steel hub of Kalinganagar, the second is designed to step up evacuation of coal from mines at Angul and Talcher.

…This is why India, endowed with the world’s fifth largest bauxite deposits and the fourth largest coal reserves, has emerged as a preferred place for making aluminium. Within the country, Orissa is where every aluminium maker wants a presence. That is why the Vedanta group, in spite of being solidly anchored in Chhattisgarh, thanks to its 50 per cent ownership of Balco, with capacity of 345,000 tonnes and then giving shape to a 650,000-tonne smelter there, wants to create alumina capacity of five mt and smelting capacity of 1.6 mt in Orissa, with adequate upstream integration in bauxite mining and coal-based power.

NAY SAYERS
Unfortunately, Vedanta is not able to realise what it has set out to do in Orissa, as it fell foul of pressure groups such as Amnesty International and Survival International and also of the ministry of environment and forests. The Niyamgiri Hills, from where Vedanta’s refinery is to draw bauxite, is considered sacred by Dongria Kondh tribesmen. But why should the company be stopped to take out bauxite from there if it is ready to resettle the displaced people and practise environment-friendly mining?

As a result of the impasse, Vedanta is required to source bauxite from outside, totally upsetting the considerations for hosting a refinery at nearby Lanjigarh. The denial of mining at Niyamgiri is setting a bad precedent for the mining sector. Redemption for Vedanta would hopefully come, with the Orissa government committed to offering alternative bauxite deposits.

There are some recent news on Vedanta’s expansion in Lanjigarh. But the news are confusing. Following is an excerpt from a September 17th report in Times of India.

Vedanta has suffered another setback in its fight-back to expand the aluminium refinery in Orissa after the Union environment ministry had struck down its environment clearance for violations.

The Cuttack bench of the Orissa High Court backed the environment ministry and ordered that Vedanta would have to apply afresh for a clearance for expansion if it wants to.

Following is an excerpt from a September 19th report in ndtv.com.

The ministry of environment and forests has cleared Vedanta Aluminium’s project in Lanjigarh, Orissa. 

The expansion of Anil Agarwal-led Vedanta Aluminium’s four million tonne Lanjigarh refinery plant in Kalahandi had been put on hold by the Union Environment Ministry  on October 21, 2010.

… Environment ministry’s expert appraisal committee (EAC) has cleared the project with 70 conditions, sources told NDTV. Major conditions among them are:  Five per cent of the total project cost would be spent on social welfare projects.The company will maintain air, water quality & develop 164 hectare of plant area as green belt.

Others conditions say that the company will also submit rehabilitation and resettlement policy covering tribals, which should be in line with government policies. The company will also be required to submit corporate environment policy approved by its board.

NALCO and IDCO join hands and float an invitation for EOI for downstream aluminum park in Angul : Deadline is September 20, 2011

Aluminum ancilaries, Angul, Anugul- Talcher - Saranga- Nalconagar, Bauxite, IDCO, NALCO Comments Off on NALCO and IDCO join hands and float an invitation for EOI for downstream aluminum park in Angul : Deadline is September 20, 2011

Following is from http://www.idco.in/2009/Aluminium_Park_IEOI_Document%2026.07.11.pdf.

EOI SUBMISSION – DATE AND TIME 7.1. The Interested Parties should submit their EOIs, in the form & manner mentioned under Clause 4 hereinabove and seal it in an outer envelope and mark the envelope as “ EOI for Participating in the proposed Aluminium Park at Angul” on or before 17: 00 hours (IST) on September 20, 2011.

SITE DETAILS

1. The site of around 450 (four hundred and fifty) acres is located adjacent to the NALCO smelter plant in Banarpal Block of Angul District south of NH 42 and for the purpose of clarity it is delineated with red boundary line in the map under clause 2 herein below (the ‘Site’).

2. The Site is undulating in nature with no apparent physical encroachments and utility lines.

INFRASTRUCTURE LINKAGES

1. Approach Road: There is an access to the site from NH 42 through a single lane carriageway through Kulad village having a length of around 2.50 km. In addition, the Site is also connected by a single lane road of length 6.4 km from NH 42 running along the periphery of the NALCO smelter unit. An alternate dedicated approach road to the site from NH 42 is being planned by IDCO. In addition, the proposed Aluminium Park shall be having a connecting link road from the proposed Angul Bypass Road.

2. Rail: There exists a single track rail siding of NALCO which runs along the edge of the site till Budhapanka Railway Station with a length of about 14 km.

3. Water: Major perennial source of water for the site is river Brahmani to the north of the site on the other side of NH 42 at a distance of about 15 KM. To the extent possible, technologies and processes to be implemented by the prospective unit holders within the proposed park should aim at maximizing recirculation and reuse of water as major demand of water for envisaged processes is expected to be for cooling requirements. This would ensure in optimizing water requirements for the park on a sustainable basis.

4. Power: One of the major substations of the State is located at Meramandali (400/220/132/33 KV) which shall be approximately 7 Km from the Site. National Grid located at Chainpal near Talcher Thermal Power Station is also a likely source. Power shall be a key parameter for the Project and steps would be taken to consider sustainability.

PROJECT CONCEPT

1. Primarily, the idea is to promote aluminium based downstream and ancillary units in Orissa and to capitalize upon the inherent location based advantage for the Site. The current practice for the NALCO smelter unit is to extract aluminium having purity of about 99.97% through an electrolytic process in potlines at a temperature of around 10000c in molten form and then to utilize the same in casting standard billets, ingots, plates, wire rods, sheets etc. Aluminium in solid form as mentioned above is procured by downstream industries and utilized for different end products. Due to proximity of the Site with respect to the smelter unit, the molten metal directly may be procured by interested downstream industrial units within the proposed park and then utilized to form different end products as desired. Even considering issues like chances of oxidation, dross formation or heat loss during the transfer process for molten aluminium, advantages for prospective unit holders within the park using aluminium in molten form rather than the conventionally used solid form include:
• Savings in terms of energy costs for the downstream industrial units
• Reduction in terms of adverse environmental impact due to reduction in energy
requirement for the process and transportation needs • Better quality of the metal in terms of lesser chemical impurities
• Efficient management of inventory with minimized requirement of stock for unit holders

2. Under the Project, the Aluminium Park is being proposed to be developed as a state-ofthe- art industrial park for entrepreneurs in related business who shall set up new units within the park and utilize the molten metal as mentioned above. The existing customers of NALCO who currently buy the metal in conventionally available solid form and utilize it for various end products at locations away from the smelter unit in Angul may also relocate their plants/set up new units in the proposed Aluminium Park.

3. In addition, ancillary units may also set up units within the proposed Aluminium Park. There would be a mutually benefitting relationship between such units and NALCO.

4. The Aluminium Park would be so developed so as to fulfill comprehensively the functional requirements in terms of common facilities, physical and social infrastructure amidst a green environment. The suggested components that may come up within the the Aluminium Park include:
• Industrial Sheds / Plots
• Warehouses/Storage Facilities
• Common Facility Centers
• Material recycling and handling facilities
• Skill development centers and ITIs
• Landscaped (green) areas, Buffer Zones
• Truck Terminal and Parking facilities

5. The envisaged support infrastructure facilities for the Project to include:
• Reserved green space
• A systematic network of internal roads
• Regular supply of quality water with adequate storage facilities
• Reliable power supply to ensure maximization of production levels on a sustainable basis including renewable energy sources
• Promoting the use of solar energy to the extent possible
• Underground utility lines
• Fire fighting system for the Park
• Adequate parking space for trucks/others
• Common effluent treatment and solid waste disposal and management facilities including for hazardous and non hazardous wastes
• Sturdy storm water and Sewerage networks, Sewage Treatment Plant
• Common Rail Siding
• Banks / ATMs / STD – PCOs
• Public and Semi public facilities including Emergency Health Services, Crèche, Public Health Centers etc.
• Efficient and professional service-oriented Operations & Maintenance system
• Dedicated access controlled road corridor from NALCO smelter unit for carriage of molten aluminium

6. For the downstream industrial units, molten aluminium may be arranged to be supplied through a dedicated road corridor from the NALCO smelter unit with appropriate safety measures. Units may make payments individually to NALCO for the molten metal being used and a suitable pricing mechanism for molten metal shall be established by NALCO for the park including provisions for revision.

7. The suggested indicative products for the proposed Aluminum Park would include:

Downstream Industries of Aluminium
• Conductors
• Extrusions
• Castings
• Foil
• Others including powder

Ancillary Industries
• Raw materials like caustic soda, coal tar pitch, alum etc.
• Dross recovery unit
• Mechanical Items: Chisel Poker, LDPE sheets, Ingot skimming tool, etc
• Instrumentation Electronic Items: Alarm card, Pressure Switch, T/C sockets, photocell etc
• Refractory Items- like LCC lid cover, flue wall bricks etc.
• Miscellaneous Items- Hand gloves, casting wheel nozzle, cotton dust mask etc.

8. Products to be considered for commercial production within the proposed Park shall be decided based on mutual consent of the prospective Entrepreneurs/Manufacturers and AAPPL –the project SPV taking into account current and planned production facilities and commercial plans of the existing NALCO Smelter Unit adjacent to the proposed project site.

9 The aspect of current pollution level at the Angul Talcher Area shall be critically considered while assessing investment proposals and arriving at the final Project contours

Job creation by new Steel, Aluminum, Cement and Power Companies in Odisha

Aluminium, Anil Agarwal, Bauxite, Birlas, Business Standard, Cement, Coal, Iron Ore, MOUs, Steel, Thermal, Vedanta Comments Off on Job creation by new Steel, Aluminum, Cement and Power Companies in Odisha

Following is excerpted from a report in Business Standard.

  • Overall: employment for 39104 people in the state by the end of December 2010.
  • Steel sector: 31164 jobs which includes employment for 22399 people from the state and 8765 people from outside the state.
  • Aluminium sector: 5474 people including 3657 from the state and the remaining 1817 outside the state. Investment worth Rs 11017 crore has been grounded in this sector.
  • In the aluminium sector, Vedanta Aluminium Ltd (VAL) has been the biggest job creator, generating over 5000 jobs through its one million tonne per annum (mtpa) refinery project and 75 MW captive power plant (CPP) at Lanjigarh in Kalahandi district and aluminium smelter complex at Burkhamunda near Jharsuguda with a smelter capacity of 0.25 mtpa and a 675 MW CPP. At its refinery plant, VAL has employed 2523 people from Orissa and 1091 persons from outside the state. Similarly, 1026 people have been engaged from the state for VAL’s smelter plant while 686 others have been hired outside the state. VAL’s total investment on the refinery plant and smelter complex stands at Rs 9084 crore.
  • Aditya Aluminium Ltd has invested Rs 1875 crore on its one mtpa alumina refinery at Rayagada and a 0.26 mtpa smelter plant cum 650 MW CPP at Sambalpur. The company has created jobs for 63 people from the state and 34 others outside the state.
  • Cement sector: The total employment generated stands at 1502 by the end of December last year.
  • OCL Cement Ltd has generated employment for 1494 people and the company has invested Rs 697.46 crore out of a total project cost of Rs 850 crore for its 1.10 mtpa cement manufacturing unit at Rajgangpur. The other two investors in the cement sector- Ultratech Cement Ltd and ACC Cement Ltd have made negligible progress on their projects in the state.
  • In the power sector, the Independent Power Plants (IPPs) have generated employment for 964 people.
  • Sterlite Energy Ltd has commissioned the first unit (600 MW) of its 2400 MW IPP, four other IPPs- GMR Kamalanga Energy Ltd, Monnet Power Company Ltd, Jindal India Thermal Power Ltd and Ind-Barath Energy (Utkal) Ltd have started construction.

Who will pay for the lost 10 crore/year developmental work in the Lanjigarh area

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Rayagada, Supreme Court 4 Comments »

Following is an excerpt from a report in Economic Times.

After stopping bauxite mining in Orissa the government now finds itself in a bind on the issue of rehabilitation in Lanjigarh. Corporate-backed developmental activities in the tribal region, one of the most backward places in the country, have come to a standstill following the environment ministry’s ban on mining.

The Anil Agarwal-controlled Sterlite Industries had been ordered by the Supreme Court in August 2008 to spend about 5% of its profit for development activity at Lanjigarh.

Since the environment ministry in August 2010 had barred mining, the rehabilitation package which includes about Rs 10 crore of annual development activity including the building of roads, schools and hospitals, has now been stopped.

"If disbursement from the development fund were to continue, it would imply approval of mining which would be contrary to the ministry’s order," said one person directly involved in the developmental work. On August 30, 2010, the ministry of environment and forests issued a notice barring bauxite mining in Niyamgiri on grounds of violation of environmental norms.

According to the same person quoted earlier, if the government asks Sterlite to stop developmental activity it would amount to contempt of court as it would go against the Supreme Court directive.

"Under our order we suggested rehabilitation package under which Sterlite Industries is required to deposit 5% of annual profits before tax and interest from Lanjigarh project or Rs 10 crore per annum whichever is higher," said the Supreme Court order. "The said project covers both mining and refining. The amount is required to be deposited by Sterlite Industries every year commencing from April 1, 2007. For the above reasons, we hereby grant clearance to the forest diversion proposal," read the order dated August 8, 2008.

… Among the projects which have been left uncertain include a Rs 3 crore hospital and a Rs 1.8 crore tribal school upgradation in the Lanjigarh block.

I hope the central government will consider paying this lost amount of 10 crores/year for developmental activities in that area.

 

An alternate view on Vedanta and Niyamgiri : Samaja Op-ed

Aluminium, Anil Agarwal, Bauxite, Kalahandi, Vedanta Comments Off on An alternate view on Vedanta and Niyamgiri : Samaja Op-ed

Earlier we posted the author’s article in English. This is for the benefit of Odia readers.

Update on Hindalco’s plan for Odisha

Aluminium, Bauxite, Birlas, Rayagada, Rayagada- Therubali 2 Comments »

Following is from a report in http://www.platts.com/RSSFeedDetailedNews/RSSFeed/HeadlineNews/Metals/7176480/.

India’s Hindalco Industries expects to start up its new alumina refinery in the state of Orissa in September 2011, with commercial sales to begin from December, company sources said Tuesday.

Construction on the 1.5 million mt/year refinery began in 2007, and is about 50% done. Based at Rayagada, it will be managed by wholly owned subsidiary Utkal Alumina International Ltd, which is also establishing two bauxite mines at Rayagada and Kalahandi that are also slated to start up next September. The refinery and mines are about 20 km apart and will be linked by a conveyor belt.

Hindalco will eventually use most of the refinery’s alumina for its own production of aluminum, but there will be surplus output for sale, initially 780,000 mt/year, then dropping to 60,000 mt/year around July 2012 when the second of the group’s two new smelters come online.

The firm has a 360,000 mt/year smelter in the state of Madhya Pradesh that is to be completed in July 2011, followed by another unit of a similar size in Orissa a year later.

In addition, plans are underway to double the alumina refining capacity in Orissa to 3 million mt/year by 2014, by which time Hindalco is expected to sell about 50% of the new output.

The alumina expansion will be complemented with further aluminum capacity increases although details have not been announced. The group is also planning to raise its bauxite output at Orissa by 4 million mt/year to 8.5 million mt/year along with the refinery expansion.

Professor Sumit Ganguly on the Vedanta decision by Ramesh

Aluminium, Anil Agarwal, Bauxite, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Vedanta 6 Comments »

Following is from http://the-diplomat.com/indian-decade/2010/08/29/orissa’s-pyrrhic-victory/.

… Some commentators in the Indian press with a strong anti-corporate orientation, meanwhile, are also gleeful that the project has come to a halt.

Ostensibly, this delight stems from having stopped a greedy multinational corporation from ruthlessly exploiting the natural resources of a remote part of the country and the traditional homelands of some of India’s adivasi (original), tribal population.

Yet despite the delight of these disparate groups with the decision, a more sober and dispassionate analysis suggests that the ultimate losers may well be the hapless tribal population who are the inhabitants of this region.

Generations of governments, despite loud promises, have done woefully little to improve their lot. The region lacks adequate roads, has few public clinics, limited educational facilities and an appalling lack of employment opportunities. Consequently, the locals remain mired in harsh and abject poverty.

The mining investment might not have been a panacea for their many woes. However, it did offer the promise of new schools, better roads, the opening of hospitals and above all the prospects of better-paid work. With the seemingly sagacious decision, none of those possibilities will materialize despite the rather facile promise from a popular Congress member of parliament, Rahul Gandhi, that he would act as the ‘sipahi’ (guard) of their interests in New Delhi.

What is being portrayed as a great victory of environmentalism is sadly little more than a crass effort to win the votes of the tribal population in a desperately underdeveloped state. The Indian state that has long failed to protect and improve the plight of the country’s tribal population needs to do far better than what transpired this week. More to the point, romantic environmentalists and their cheerleaders in the press should think about how they are becoming unwittingly complicit in the Congress’ Party’s feckless quest for votes.

His short bio from the same page:

Ganguly is the Rabindranath Tagore Chair in Indian Cultures and Civilizations and a Professor of Political Science at Indiana University, Bloomington. Ganguly is the author, co-author, editor or co-editor of twenty books on South Asia and serves on the editorial boards of Asian Affairs, Asian Survey and Current History among others.

Varied coverage on Vedanta and Jairam Ramesh’s high-handedness

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Vedanta Comments Off on Varied coverage on Vedanta and Jairam Ramesh’s high-handedness

Earlier the media thought that the underdogs were the locals and tribal and the valiant NGOs fighting for them against the big monster Vedanta. So all the stories (except direct publishing of Vedanta press releases which they had to do once in while to keep getting Vedanta’s ads) were from the angle of how mining in Niyamgiri would destroy the way of life of the tribals. How Vedanta did this mistake or that mistake which was magnified and circulated by the NGOs. No body outside of the government and Vedanta dared to defend the mining aspects as they were afraid of being labeled as bought outs, being bribed, or just monsters who do not care about poor people and tribals.

But now it seems Jairam Ramesh has behaved in such a high handed and partisan manner that slowly the media is discovering the other side of the story; which they mostly ignored earlier.

Here are some of the coverages.

1. From http://ibnlive.in.com/news/volteface-vedantas-opposer-turns-soft/129818-3.html.

In a shocking volte-face, the most vocal tribal voice against the Vedanta project in Niyamgiri hills of Orissa, is now its brand ambassador – Jitu Jakesika is now trying to convince tribals on the benefits of the mining project. Twenty-two-year-old Jitu Jakesika belonging to the Dongoria tribe of Orissa had come out in fierce opposition against the Vedanta mining project in 2008, when Rahul Gandhi had first visited Langigarh. He’s now crossed the line and is espousing the Vedanta cause.

"The NGOs and the political parties used to come to us and tell us that Vedanta would blast at Niyamgiri hills to extract bauxite and thus our livelihood and culture would be destroyed. I was convinced by their theory though I was educated. Later, I realised that this mining project will not have a detrimental effect on our livelihood and culture in any way. It would rather usher in development in our area." In 2009 Jitu was sponsored by Vedanta to study business administration in Bhubaneswar. His views have changed since. Jitu’s critics allege bribery and corruption. But he is unfazed.

"Our tribal people worship at the Niyamdanga hills not at the adjoining Niyamgiri hills as is being propagated by the NGOs. So where is the question of our worship place being destroyed coming from? We tribals worship mostly in our houses," insists Jitu.

Vedanta had also sponsored a visit of the tribals to NALCO’s bauxite mining site in Koraput, gaining some supporters for the mining project in the process. Now, Jitu has intentions of visiting Delhi soon to meet Rahul Gandhi and the prime minister and convey to them that all tribals in his community are not against the Vedanta project. However, whether Jitu’s contrarian voice would be heard or not isn’t clear yet.

We earlier mentioned Jitu in our article http://www.orissalinks.com/orissagrowth/archives/3762.

2. From a rediff article by Nilmadhab Mohanty.

 

First, the manner and time-line followed in the decision-making. The Orissa state government seems to have applied for final clearance in August 2009.

The Forest Advisory Committee (FAC) has been deliberating the proposal at least since November 2009. In addition to the information submitted by the State and the central government’s own agencies, it had the benefit of the recommendations made by a three-member expert group which submitted its report in February 2010.

FAC then asks for yet another committee under the Ministry of Tribal Affairs, which is the nodal agency in the central government for tribal rights. The environment minister, however, appoints his own committee (the Saxena Committee) in the last week of June 2010.

Then the pace quickens: The environment minister writes to the law ministry on July 19 to obtain the Attorney General’s opinion if the ministry of environment and forests (MoEF) apply its mind and decide in the light of the Supreme Court’s earlier decision giving forest clearance.

 

The AG replies promptly on the following day; Saxena submits report on August 16, FAC deliberates without much loss of time and submits recommendations on August 23, and the minister announces his decision with a 20-page reasoned order on August 24, 2010!

The must be a record in governmental working! The affected party, namely the Orissa government, is hardly given any chance to given an explanation to the MoEF.

In fact, the hapless Orissa officials seem to have met the minister on August 24 when he was in a tearing hurry to announce his decision!

 

The highhandedness I refer to is that fact that Ranesh did not give much of a chance to hear the Odisha government’s response to the Saxena committee report. He seems to have already made up his mind. So much so that Rahul Gandhi’s trip to Kalahandi was already announced on August 21st, while CM Naveen Patnaik met PM Manmohan Singh and Jairam ramesh on August  23rd and Jairam Ramesh met the Odisha government officials on August 24th. 

No one will believe that Rahul Gandhi made the decision to visit Kalahandi without knowing what Ramesh’s decision would be. Ramesh’s scant regard for what Odisha has to say on the issue shows his highhandedness. His informing Rahul Gandhi about the decision before even the report was submitted by FAC on August 23 shows that the government in Delhi is not a democratic government but a fiefdom of the Gandhi’s.

There are many more disturbing questions raised by the rediff article by Nilmadhab Mohanty.

3. The article by Saubhik Chakrabarti in Indian Express raises many other questions.

4. The blog entry at http://www.hindustantimes.com/7-questions-on-Vedanta-Niyamgiri-and-economic-development/Article1-593564.aspx

5. Tavleen Singh in Indian Express: http://www.indianexpress.com/news/politics-pollutes-the-environment/673939/0

6. Indian Express Editorial: http://www.indianexpress.com/news/whose-agitation/673470/0

7. B G Verghese in Business Standard: http://business.rediff.com/slide-show/2010/sep/06/slide-show-1-was-it-right-to-stop-vedanta.htm

http://www.business-standard.com/india/news/b-g-verghese-stop-vedanta-stop-india/406911/

See also his op-ed in Expressbuzz.com.

Saubhik Chakrabarti gives a nuanced picture of Lanjigarh in Indian Express

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, New Indian Express, Indian Express, Financial express, Vedanta 2 Comments »

Following is from his article in http://www.indianexpress.com/news/orissas-unobtainium/673845/0

…Niyamgiri, or Niyamgiri hill range—more than 100 hills; 250 square km approximate area—justifies the use of a few cliches. Lush. Verdant. Breathtakingly beautiful in clear, early morning light. The abundance of flora is easily evident (fauna, of course, is not easily spotted, but there are indisputable authoritative declarations on its abundance). Dense clusters of fruit-bearing trees on the slopes can pleasingly unnerve a typical city type. Niyamgiri mangoes are going for Rs 5 a kg or even less at small local markets. Medicinal plants that grow on the hill slopes, say locals, can cure severe wounds. A long trip to the indifferent care of the public heath centre is not required. So, yes, you can think ‘unspoilt’. Many members of the local tribal population—Dongria Kondh, who live on the upper slopes of Niyamgiri and the Kutia Khond, who live near the foothills—were bussed in for Rahul Gandhi’s rally on Thursday, and many of them were clearly happy that mining in Niyamgiri is now stalled.  …

There are plot twists. Seven twists, in fact.

1. A question on local tribal custom.

2. The nuanced answer to the question, what do tribal groups want?

3. How the private investor in Niyamgiri is a bad advertisement for private investment.

4. Where’s the ruling party in Niyamgiri politics?

5. Can we assume a tribal arcadia?

6. Could Niyamgiri have become a laboratory of intelligent mining?

7. Can Orissa afford the Niyamgiri decision?

First twist: That the tribes are protected groups, under Schedule V of the Constitution, that wildlife protection rules apply to much of the area, that the ecosystem is something special are all undisputed facts. That tribal groups have always associated their deity with the hilltop is also supposed to be undisputed. But if you ask around persistently, you don’t get a clear answer. Some locals, otherwise unimpressed with Vedanta’s development efforts, say the hilltop becoming ‘sacred’ is a recent change. Many others dispute this. And this lack of local consensus on what should be widely known local tribal tradition is important because bauxite in Niyamgiri resides on the hilltop—that’s where the mining was to happen before the Central environment ministry denied Orissa Mining Corporation a clearance. This part of the story is more complicated than the usual anti-mining narrative suggests.

Second twist: What are the tribal groups opposing? They are opposing mining on the hilltop. But are they opposing the building of social and physical infrastructure in an area that’s staggeringly underdeveloped even by Indian standards? The answer’s no, and that might seem obvious. But its implications are not obvious. No one denies that successive state governments, Congress or BJD, have been worse than negligent in terms of building social/physical infrastructure. Niyamgiri is in Kalahandi, which is part of the infamous KBK (Koraput-Bolangir-Kalahandi) group of districts: extreme underdevelopment is the KBK signature. KBK districts account for 72 per cent of Orissa’s below the poverty line population. Of the 82 very backward blocks in Orissa, 53 are in KBK. KBK literacy rate is an abysmal 43.3 per cent, while Orissa’s state-wise average is 63.08 per cent. These are all figures (source: 2002 Orissa BPL Census) that tell a dreadfully grim story. And everyone in the Niyamgiri battle, whichever side they are on, agrees.

Siddharth Nayak, leader of Green Kalahandi, a local activist group that counts among its supporters Vandana Shiva, Medha Patkar and Arundhati Roy, said lack of minimum and halfway reasonable quality infrastructure is a big problem. He also said Vedanta Aluminum Ltd (VAL) hasn’t developed as much infrastructure as promised. This is a complaint made by many locals, tribal or otherwise. But if there’s no Vedanta, or no mining, no trigger effect from private investment, who will develop infrastructure, build schools, hospitals, roads? To say that the state administration should do it seems a bit of a cruel joke given decades of history. And especially because local infrastructure is linked to local economic vitality.

There’s no convenient railhead for Kalahandi, a brutal reminder of the district’s lack of minimum economic heft. Apart from agriculture in tiny holdings and forest produce, the latter, consumed and sold locally, and therefore offering no multiplier effects, Kalahandi has little to offer, except a king’s ransom in minerals. Eco-tourism on hills like Niyamgiri is the local activists’ favourite solution to act as a development trigger. But will eco-tourism concentrating on the lush hill ranges bring in the kind of investment that large-scale industrial activity can? And minus the large-scale investment, can enough jobs and enough infrastructure be created? Locals loudly complain that Vedanta doesn’t employ enough of them, that its school—DAV Vedanta School, an impressively well-appointed facility—doesn’t enroll enough tribal/non-tribal children. Vedanta officials deny this. But the fact of these complaints says something: that there was and is a strong expectation, from tribal and non-tribal locals, that big private investment can have beneficial effects. If we assume Vedanta’s corporate social responsibility hasn’t been up to the mark, then the question, from locals’ point of view, is one of more locally engaged private investors, not solely of the absolute villainy of private investors. But the villainy is what the simple narrative of Niyamgiri highlights.

The more nuanced telling of this story comes from the likes of Raju Sahu who came from Bihar to Kalahandi 10 years ago and runs four tea/food stalls on the state highway that links Lanjigarh—where Niyamgiri and the Vedanta factory are situated—to Bhawanipatna, the district HQ. Sahu says his business has more than trebled since Vedanta started operating from here about four years ago. But he complains: what will happen if operations shut down, and why isn’t the state highway in a better condition; his business would be even better then. All along the road and right up to the site of Rahul Gandhi’s rally, tiny businesses run by locals talk of a quantum jump in sales and brood about it all ending. They, too, are locals, and the Niyamgiri story and the Kalahandi story can’t be delinked from what they represent: the possibility of local economy regeneration.

Third twist: Vedanta hasn’t made it easy for themselves or for the cause of private investment. This is apparent even if one sets aside questions about how Vedanta set up its bauxite refinery, how it increased the capacity and the sources of its current bauxite.

Vedanta officials offer you stacks of folders on CSR activities. But local complaints on Vedanta’s less-than-stellar efforts are universal. Lanjigarh or the wider area surrounding it doesn’t even look like a company town, as habitations surrounding big industrial projects often do. The bauxite to aluminum business gives very high returns. Those kind of margins sharpen the question of effective spending for local development.

Also, the company faces several allegations of what activists call its “reliance” on strong-arm methods. A recent case, much mentioned by activists and Congress leaders, is that of the police picking up Lado Sikaka, a Dongria Kondh, and later releasing him. Sikaka says he was brutally roughed up and was almost “kidnapped” because, as he alleges, he’s a prominent anti-mine activist. The local police say picking him up was an error. Vedanta says it doesn’t support any strong-arm methods. But perceptionally, the company seems to have lost this battle.

The state highway mentioned earlier is a good example of bad optics. Vedanta’s 16 tonne carriers, which weigh 33 tonnes when packed with aluminum oxide produced in the plant, trundle down this road every day, 30 trips a day on average. The road shows the toll of this traffic. Local administration officials admit the state highway, never top quality in the first place, is in increasing state of disrepair. They talk about charging more toll from the carriers and rebuilding the road. But, strangely, Vedanta hasn’t helped in making this road better. The company’s response to this highlights the local administration’s responsibility, while adding that it has built roads elsewhere. But this is literally the road to the project. It was entirely appropriate therefore to see, on this road, a shabbily painted Vedanta signboard, hanging askew, with a Rahul Gandhi poster pasted smack in the middle of the board. That pretty much tells you the story of Vedanta’s big PR problem in Lanjigarh.

Another aspect of the same problem is how Niyamgiri was planned to be mined. The Orissa Mining Corporation and Sterlite (Vedanta’s sister concern) formed a joint venture, the Southwest Orissa Bauxite Mining. Sterlite has 74 per cent shareholding. This JV was supposed to act for OMC in choosing and monitoring mining on the Niyamgiri hilltop. But given that the controversy on Niyamgiri mining was brewing for two years, was this arrangement—essentially Sterlite in charge of ensuring good mining practices for bauxite that’s needed by its sister concern Vedanta —the smartest? Vedanta officials say Sterlite’s experience makes it ideal for the purpose. But they don’t have a good answer to the question whether this is credible in a charged atmosphere. Knowledgeable local activists keep making this point, with some justice.

Fourth twist: The absence of enough competition in local politics. The Congress is front and square in the Niyamgiri agitation, delighted now by its ‘victory’. But where is the BJD, Orissa’s ruling party? The line between activists and the Congress is muddled enough for the local Congress MP, Bhakt Charan Das, to have been a past head of Green Kalahandi. But the BJD is so politically ineffective here that bandh calls on Wednesday and Thursday were comprehensively ignored. The BJD’s local weakness may seem surprising for a party that has won three state elections, and whose chief minister, Navin Patnaik, has made a determined effort to appear tribal-friendly. The explanation lies in the vagaries of alliance politics. When the BJD and the BJP became allies, Kalahandi was given to the BJP to build a base. The alliance broke up on the eve of the 2009 assembly elections. So, the BJD essentially had a late start in Kalahandi. That political weakness has resulted in giving the local Congress, which was always strong in Kalahandi, a headstart in political mobilisation on Niyamgiri. Had the BJD been stronger, had it been in a position to work among local tribal groups, the contest would have been more even. Local BJD officials admit this privately.

The Niyamgiri story is not just about activists and tribal groups, it’s also about the Congress getting an unusually clear political field. There are no credible local politicians to speak for the mining project. The sharp irony here is that Patnaik is also the forest minister, who has publicly led the campaign for tribal land rights, but the Niyamgiri mining proposal has been deemed dramatically violative of forest rights. There’s no local BJD counter-point to this.

Fifth twist: Tribal arcadia? Yes, Niyamgiri provides plenty of natural resources. Yes, the hill inhabitants don’t get affected by the droughts that are so common to Kalahandi. Yes, rank starvation is not a feature in Niyamgiri. But the tribal groups still operate in what is a subsistence economy, and they don’t have access to basic facilities in education or health. Tribal groups seems more aware of this than those romanticising the Niyamgiri way of life. Which is why local tribals complain about not getting jobs or education for their children. Which is also why Sitaram Raju, an 18-year-old security guard at the under-construction Vedanta co-funded mid-day meal cooking centre in Lanjigarh, has these stories about several inquiries from local tribal people on when the centre will start operating?

Our children will get eggs and good rice, local tribal people said when asked about the mid-day meal centre. There’s desperation for wanting something more than what they have in that wish. Raju, from Sambalpur in Orissa, earns Rs 4,200 a month. That’s a handsome salary in comparison to local average incomes. And Raju got the job because private security agencies have come in numbers since Vedanta started building sites. A local young tribal—he said he’s “eight class pass”—when asked whether he would like a job that pays what Raju gets, looked at his interlocutor as if the latter was an idiot. Of course, he said. But there are no jobs.

The hazards of romanticising tribal ways of life are colourfully exemplified by Kalahandi’s self-proclaimed “most important communist”. …

Sixth twist: Could Niyamgiri have become an ideal laboratory for good mining? Some Niyamgiri stats bear mention. There are around 8,500 tribal people in the 250 sq. km. hill area. That low population density makes industrial activity easier to handle in terms of fallout. The proposed mining area was four square km: a very small part of the hills. There’s seemingly irreconcilable debate about whether the bauxite-rich hilltop is green-friendly or not. The pro-mining view says trees don’t grow on bauxite-rich hilltops because the mineral doesn’t retain water. Post-mining, when the bauxite reserve is exhausted, the hilltop can, this view says, be made green-friendly. The example given is Nalco’s greening of the hilltop in the Koraput mine; Koraput is a neighbouring district. The anti-mining view says bauxite is porous and it therefore allows water to filter down and that keeps the hills lush. Establishing the real position objectively seems a lost cause in Niyamgiri. The talk is only about Vedanta’s violations and keeping mining away forever. Vedanta may well have violated legal norms, as the environment ministry says. And definitely, the Vedanta-OMC arrangement on mining Niyamgiri, as explained earlier, doesn’t pass muster in terms of a conflict of interest test. But sustained talk of huge ecological devastation, as the Saxena report for example talks about, has killed intelligent discussion on whether Niyamgiri could have been intelligently mined, under proper supervision. Also, bauxite mining, because the hilltop deposits are shallow, rarely needs blasting, the most disruptive of mining activities.

There’s something odd about the Central approach to ecological impact of the proposed Niyamgiri mining. Niyamgiri had received environmental clearance in October 2007. This okay comes after impact assessment studies under the Environment Protection Act. The Saxena report, which was submitted with a speed rare in government—formed in late June this year, the report was submitted on August 16—spends pages on ecological impact. But what does this mean? That the Centre was unaware since 2007, when the EPA clearance was given, that Niyamgiri mining would be environmentally harmful, and that the dangers were discovered only after a two-month study by the Saxena committee?

The seventh and the biggest twist: Can bauxite be mined in Kalahandhi, which has a huge reserve of the mineral? The Central environment ministry says the denial of mining rights is based on rules violation, in particular violation of forest rights under Forest Rights Act. This seems to imply that had Vedanta played by the book as per the ministry’s assessment, clearance would have come. But the Saxena report also puts emphasis on tribal groups’ livelihood traditions and on potential ecological damages. On the ground in Kalahandhi, it’s these two that are being highlighted. Local Congress leaders and activists talk of attempts at stealing away tribal land. If the Centre reckons that subsequent applications for mining hilltop bauxite can be measured only against legal benchmarks, it is probably making a mistake.

Kalahandi is a scheduled area, with heavy tribal presence. Tribal habitations are typically in the area’s hills. The hilltops have bauxite. The ‘victory’ in Niyamgiri has fired up activists and the Congress. Not all tribes who live in other bauxite-rich hills have the heavily protected legal status enjoyed by the Kondhs of Niyamgiri. But, as Nayak said, every mining application will now be met with movements about tribal rights. He reckons Niyamgiri has created a precedent that’s too strong to be ignored. This is good from the activists’ point of view, or for Orissa Congress’s political calculations, but it’s hardly good news for Kalahandi and Orissa.

This is the real big potential fallout of Niyamgiri: it can create more Niyamgiris. 

Following are some of my comments: 

  •  Earlier, we also made the point regarding how sacred the hill-top was. In India, both tribals as well as Hindus have many things that they pray. Often many people make temples to usurp government land.  So the lack of consensus regarding the hilltop being sacred and even people who are unimpressed with Vedanta suggesting that the "hilltop being sacred" is a recent change points finger at the activists being behind hyping up the sacred aspect of the hill top.
  • On Vedanta not having developed infrastructure: The various reports say that with importing bauxite from outside the company was not making profit, so based on short-term economics it did not spend enough in developing infrastructure. But that was short-sighted action from the company.
  • The author makes a nice point that the local and tribals do want jobs, schools etc.  and  were not opposed to development per se.
  • Vedanta’s trucks are directly responsible for the deterioration of those roads. They should have spent money on those roads and made them better.
  • BJD has a unique opportunity now to counter congress and shore up its base. It should immediately announce and start a state university in Kalahandi; it should take over the half-constructed medical college and make it a government medical college; and it should augment the agricultural college. Being in power in the state, it can do that. It can then go to the people and say: "See Congress is against development. But we are not going to let their anti-development stance hurt the people of Kalahandi. We will do our best to bring development to Kalhandi." (Hopefully Congress will then counter this with some kind of a central institution there.)

My final thought is why did not Saubhik Chakrabarti write such an article before. In the past the only views on Lanjigarh mining that would come out is that of the activists and the press releases by Vedanta. Both were one-sided. So the Indian media is partly responsible for the negative effects of Ramesh’s activism. If only they had given nuanced views like the above before Ramesh made the decision then Ramesh may have made a more nuanced decision.

Politics behind Lanjigarh becoming clearer?

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, ENVIRONMENT, Kalahandi, Mine related pollution, Vedanta 1 Comment »

1. MP of Kalahandi, Bhakta Das, who in recent years has been vociferous against mining by Vedanta once was desperate to have an alumina plant in Lanjigarh. Following is from a report in Hindu.

Today, he is known as a champion of tribal rights and a leader in the fight against Vedanta’s proposal to mine bauxite in Niyamgiri. But 14 years ago, Bhakta Charan Das, Congress MP from Kalahandi sang a different tune. “The Government of India and the Orissa government should take keen interest to set up at least a large alumina plant because we have got a heavy deposit of bauxite in Niyamgiri and Sijimalli of the Kalahandi district,” he had said during a November 1996 debate in the Lok Sabha on the drought situation in Orissa. “If there is an alumina plant, then a minimum of 40,000 people can sustain out of the different kinds of earnings from that.”

When asked about his statements on Thursday, Mr. Das initially insisted that he had only recommended mining in Sijimalli and not Niyamgiri. When faced with the Lok Sabha record, the MP, also the founder of the Green Kalahandi movement, admitted that he had learnt a lot since that day one-and-a-half decades ago.

“I had not visited Niyamgiri then. I did not know of the Dongria Kondh links to that place then. At that point, I did not know it was a densely forested area,” he said, speaking to The-Hindu over telephone immediately after the mass rally was held by Congress leader Rahul Gandhi in the Niyamgiri area.

“Of course, the Kalahandi district needs more industries, but it should not be development at the cost of the people, at the cost of the forests,” Mr. Das said, adding that the Vedanta project had failed to generate sufficient local jobs, or provide health and education facilities. “I will still be happy to support an industry that takes into account the views of the local people, that will ensure the future of all stakeholders, that follows all the laws…There can be other mines, but why don’t they go and find an abandoned mountain, instead of Niyamgiri?”

Note that the government of Odisha (a Congress government led by Janaki Patnaik) signed the first MOU with Vedanta for mining in Lanjigarh in 1997, exactly 13 years ago, a year after the above statement by Bhakta Das.

2. Bhakta Das as well as the Youth Congress Chief of Odisha, Pradeep Majhi (MP Nabarangpur) are not against mining for bauxite. They just don’t want it now in Lanjigarh. Following is from a report in Orissadiary.

Orissa Pradesh Youth Congress chief, Nabrangpur MP Pradeep Majhi on Thursday said Vedanta can look for alternative sites except Niyamgiri from where it can mine bauxite to feed its one- million- tonne alumina refinery at Lanjigarh in Kalahandi district.

He suggests alternative sites—Kuturmali, Bijimali and Sabarmali hills which are in the periphery of Niyamgiri and there are no habitation of tribals in this region. He said The Congress party is not against industrialization. There are many other hills where there are no tribals and that can be used by Vedanta which are only 8 kms from Niyamgiri. But it is clear that no mining would be allowed at Niyamgiri.

3. Not wanting in Lanjigarh and some other place is fine depending on how sacred that mountain is to the local adivasis. But did the activists hyped up the sacredness to stop the project? I have no idea. But the following excerpt from a report in Telegraph seems to suggest that way.

Regarding industrialisation and its effects on Niyamgiri, Jakesia said: “I realised that for bauxite excavation, only the surface level of the rock is used.

This is unlike iron ore and coal mining, where one has to go below the surface. Thus, the process is fairly smooth. You will be surprised to know that puja offered to Niyam Raja was never performed there. Now, after the spread of awareness, the puja is performed on top of the hill.”

4. In http://www.orissalinks.com/orissagrowth/archives/3944 we mentioned several disturbing questions raised by Nilmadhab Mohanty (a senior Fellow, Institute for Studies in Industrial Development, New Delhi) on how the government went about this. The following excerpt from an article in Economic Times raises additional disturbing questions.

On August 24, the Central government said that Vedanta Aluminium had not sought prior approval for expanding the refinery capacity to 6 million tonnes from 1 million tonnes. Another government decision that day, announced by the minister of state for environment and forests Jairam Ramesh, stopping plans to mine bauxite at Nyamgiri near Lanjigarh, attracted much more attention but the brake on the refinery expansion could have a longer term impact on the fortunes of Vedanta. The bauxite was to be supplied to the refinery.

The chief operating officer of the Anil Agarwal-controlled company, Mukesh Kumar, expressed his doubts on Thursday over the “intention” behind these announcements in view of an earlier notification.

The ministry of environment and forests had said on August 19 that for all projects which were increasing capacity and where terms of references—the guidelines and scope for any expansion—have been mentioned and where construction activities have been started, the terms of references may be suspended or withdrawn.

"Instances have come to the notice of this ministry where project proponents have undertaken construction activities without obtaining requisite environmental clearance…No activity relating to any project covered under this notification, including civil construction, can be undertaken at site without obtaining prior environmental clearance," the notification added.

The notification relates to environment impact assessment (EIA)— a crucial part of the project approval process under the Environment Protection Act. The EPA is the umbrella legislation that regulates the impact of all industrial and commercial activities on environment.

The Vedanta official said that no prior approval for expansion was needed according to the rules in place—the Environment Impact Assessment notification of 2006—before the changes announced on August 19.

"There is no threshold limit given in the EIA notification for such a project," Mr Kumar told ET. "Hence prior environment clearance, as per the notification for our proposed expansion, is not mandatory before undertaking any construction activities."

Mr Kumar also referred to a section in the 2006 notification which stipulates that approval to the terms of reference for any project has to be announced within 60 days from the date of submission. "If the decision is not conveyed within 60 days, then the terms of references suggested by the applicant, "shall be deemed as final terms for the EIA study."

Vedanta had submitted its proposal for expanding the capacity to the ministry of environment and forests for approval on October 3, 2007. The company didn’t get approval within 60 days, which is the mandatory period as per the notification.

Mr Ramesh did not respond to calls and text messages sent to his mobile.

We will add more things as they come out. 


Regardless of all of the above, my current view is that stopping Vedanta mining in Lanjigarh, although done in a very partisan and high handed way, was a high profile example to make the point that environment and forest rights need to be taken seriously, to send a message to the maoists that the UPA-2 government (mainly Congress) will protect tribals, and to send a message to the tribals that they can rely on the government.

While a government should treat everyone equally and follow the law and not make one-time examples, the motivation here makes some sense on the ground of greater good of the country that currently faces the maoist menace who reportedly use mining and miners in their recruiting plays.

As I finish writing this, I read an article in Indian Express, that points out many additional interesting issues.

Odisha government responds to the Saxena Committee report on Vedanta’s operations in Kalahandi

Anil Agarwal, Bauxite, ENVIRONMENT, Forestization, Key Center-State issues, Mine related pollution, Supreme Court, Vedanta 2 Comments »

I don’t have the letter that the Odisha government wrote. But the following excerpts from a report in tathya.in gives some idea.

… However responding to the report, in a letter to the Ministry of Environment & Forest (MOEF), the State Government has said that “it is shocking to note that the Saxena Committee has preferred to discuss in a derogatory manner the issues, which have been considered and adjudicated by the Supreme Court of India.” 

Upendra Nath Behera, Principal Secretary of the Department of Forest & Environment (DOEF) in his letter to the Secretary, MOEF has said that a preliminary study of the report shows that it has raised serious allegations against the State Government. 

It has cast aspersions on the intention of the State Government about implementing the Forest Rights Act (FRA), when the Government of Odisha is credited to be the second best performing state in the country in implementation of FRA. 

The report has asked the MOEF to reject the application of the State Government for diversion of forest land for the above purpose as mining in Niyamgiri will destroy wildlife habitat and it will cause hydrological disaster. 

It has also said that mining will destroy the cultural, religious and economic habitat of the Dongaria Kondhs, who reside in the forest area proposed for diversion. 

The State Government has pointed out that the issues raised by the Saxena Committee were the subject matter of different PILs filed by various activists before the Central Empowered Committee (CEC), which ultimately came up before the Supreme Court. 

In view of the technical issues raised in the applications, the Apex Court had directed MOEF to appoint expert bodies for examining various issues. 

The Wildlife Institute of India, Dehradun had conducted studies on the impact of the mining project on biodiversity and wildlife including its habitat. 

The Central Mine Planning & Design Institute (CMPDI), Ranchi conducted studies on the impact of the mining project on soil erosion, impact of ground vibration on hydrological regime including ground porosity and permeability. 

All these issues were discussed in the Forest Advisory Committee (FAC) on 30 August, 2006, when the project was placed before the Committee for scrutiny. 

Similarly the project was challenged in the Supreme Court on the grounds of violation of FRA. 

After elaborate discussion of the reports of the expert bodies, views of the State Government and MOEF covering all issues relating to ecology, wildlife, hydrology, soil erosion, tribal life and implementation of different environmental laws, the Supreme Court on 23 November, 2007 cleared the project with certain directions. 

On compliance of all the directions of the Apex court, the project was cleared by the Supreme Court on 8 August, 2008. 

The State Government has said that “it is of course, understood that the MOEF has not taken a view on the recommendation of the Committee."

The Government of Odisha in its’ letter has said that “it believe that if a judicious view is taken by the MOEF, most of the findings of the Saxena Committee will not hold water." 

Under this backdrop, the State Government has urged the MOEF to provide an opportunity to present its’ views before taking a final decision in this matter.

Jairam Ramesh, environment, Vedanta and Odisha

Alleged rogues, Anil Agarwal, Bauxite, Bhubaneswar- Cuttack- Puri, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Forestization, Kalahandi, Key Center-State issues, Koraput, Malkangiri, Mine related pollution, Nabarangpur, Puri, Vedanta 12 Comments »

People reading this blog must must have seen the news about the Saxena committee (which was empowered by Jairam Ramesh and the environment ministry) report on Vedanta’s operations in Lanjigarh, Odisha.

Although the report reads like an activist team’s report, the fact remains that the laws of the country are sacred and needs to be followed.

It is a different matter that laws are broken with impunity at all levels ranging from the laws reported to be broken by Vedanta to normal people extending their houses and gardens into government land, groups building temples as a ruse to capture government land where ever they feel like, people blocking roads, trains, doing bandhs whenever they feel like, etc. etc. In India laws are broken with impunity and are broken more often than they are adhered to. But this does not excuse what Vedanta is reported to have done. The committee report also rebukes the Odisha government for its hand in the whole affair.

However, one needs to put this report in perspective with what the environment ministry and Jairam Ramesh have found in rest of India. Following are excerpts from a report in rediff.in that gives us some added perspective.

… several industrialists are also upset about what they call Environment Minister Jairam Ramesh’s activist-like positions. "He is taking positions, which are normally associated with unreasonable activists and their organisations," says one leading industrialist whose project is stuck. …

… Data from the ministry’s website show that of the 58 projects that have come up for Coastal Regulation Zone clearance since April 2009, it gave only half a dozen of them the green signal.

Over 1,800 projects are awaiting clearances as of the first week of this month.

…"There are people who consciously instigate and organise people in coastal Andhra against projects coming up in the region," says a spokesperson of a power company,  which is promoting a project in coastal Andhra Pradesh.

"Land availability is a big issue in India. Developers can approach the ministry only after either acquiring the land or have assurances to get the land, to request for the terms of reference to carry out an Environmental Impact Assessment study. By that stage, a lot of investment and time may have gone into execution of the projects, and still you are not sure of getting the clearance," says Sanjay Sethi, executive director (infrastructure) at Kotak Investment Banking.

"It is necessary to have more transparent and clear guidelines and checklists for land available for various commercial and industrial uses, with clear maps of sensitive zones, which should be easily available to project developers," he adds.

… To be fair to the environment ministry, there are issues like misrepresentation of facts by project developers and the state, or conflicting reports on issues by expert panels.

In a recent development, the environmental clearances for at least four projects in an around Srikakulam in Andhra Pradesh were suspended by the ministry.

On July 15, the ministry cancelled the clearance given to Nagarjuna Construction Company’s 2,640 megawatt (Mw) coal-based super critical thermal power plant at Gollagandi and Baruva villages in Srikakulam.

An expert panel said most of the project land allocated by the state government might be regarded as wetland, contrary to an earlier panel report that the 750 acres of grasslands were barren and not fit for agriculture.

The same expert panel, which visited East Coast Energy’s 2,640 Mw thermal project near Kakarapalli village in Srikakulam during the same time, found the state government had ignored reports on the ecological value of low lying areas of the well recognised Naupada swamps wetland and migratory bird breeding in nearby Telineelapuram of Srikakulam.

"This amounts to suppression/distortion of facts," the panel said.

A nearby project – that of JSW’s 1.4 million tonnes per annum (MTPA) alumina refinery and a co-generation plant – is also being reviewed by the ministry.

… On June 28, the ministry directed the formation of a supervisory committee to monitor the influence of toxic effluents from JSW Energy’s 1,200 Mw thermal power plant at Jaigad in Maharashtra, following apprehensions that effluents could affect the quality of Alphonso mangoes and cashew orchards in the region.

… Ten days before that, Jindal Power Limited drew the wrath of the ministry for commencing construction of a 2,400 Mw power project at Tamnar in Chhattisgarh,  without obtaining prior environment clearance.

The ministry has directed the state government to stop work and initiate action against the Naveen Jindal-promoted company.

Some of the other high-profile projects that have been halted include the Maheshwar Hydroelectric project on the Narmada river in Madhya Pradesh on grounds that the conditions of the statutory environmental clearance were not complied with and the resettlement and rehabilitation of the project-affected families was less than satisfactory – charges denied by the state chief minister and the company.

… Also, many say the minister has involved himself in much-publicised wars of words with Civil Aviation Minister Praful Patel over the environment ministry’s reluctance to clear the Navi Mumbai international airport, citing destruction of mangroves, razing of a hill and diversion of two rivers; with Road Transport Minister Kamal Nath, who openly accused him of blocking projects;

… But, even his sharpest critics agree on one thing: Ramesh has made sure that no one can treat the environment ministry lightly any longer.

… "This is probably the first time that an environmentalist has become a minister. He is almost single-handedly bringing about a paradigm shift within the government about how to view progress and development," says Pandey.

I agree with the sentence in the red. Earlier companies and state governments were not taking the environment ministry that seriously. Ramesh’s actions will make sure that everyone take the environment ministry seriously. That is a good thing and kudos to Mr. Ramesh for that.

However, as far as Odisha is concerned Jairam Ramesh seems to have something against it. We say that for the following reasons.

  • When Odisha was trying for an IIT Jairam Ramesh insulted Odisha with his comments. See http://www.orissalinks.com/archives/286.
  • Recently, Hindustan Times (see http://www.hindustantimes.com/Environment-Ministry-puts-on-hold-Vedanta-University-in-Orissa/Article1-542363.aspx) reported the following: "The Union Environment Ministry on Tuesday put on hold the controversial Rs.150 billion Vedanta University project in Orissa following complaints of alleged irregularities by its promoter Anil Agarwal Foundation. The direction to keep the project in abeyance has come within a month of the Ministry granting conditional environmental clearance to the Foundation which is building the university." Now stopping a mine or a factory or an airport for environmental reasons may make sense, but a university?? That too, just because some one complained. No investigation! Just people complained and he stopped the project, when the project was about to construct a medical college!!
  • Jairam Ramesh and his ministry recently granted environmental permission to construct the Polavurum dam in Andhra Pradesh against the objections of the Orissa and Chhatisgrah government. See http://timesofindia.indiatimes.com/india/Environment-ministry-clears-Andhra-project/articleshow/6233874.cms . Times of India was surprised with this. It wrote: "Oddly, while the ministry had set up separate committees to investigate the settlement of rights under the Forest Rights Act in other high profile cases such as Vedanta and Posco which propose to displace far lesser people, in the Polavaram case the ministry has decided to accept the state government’s compliance report on face value.  The mega-project is expected to submerge 276 villages displacing upwards of two lakh people by some estimates. "   

In summary, while Jairam Ramesh deserves kudos for putting his foot down on environment laws and making sure everyone takes them seriously, people of Odisha need to be very careful of him as he seems to be against Odisha; he has stopped projects clearly beneficial to Odisha (namely, Vedanta University) by using his environment stick, and at the same time has allowed projects clearly harmful to Odisha  (namely, the polavurum dam) even after the Odisha government and Odisha chief minister have vehemently objected to it. This does not at all gel with the actions they took against Vedanta University. There the project was ordered to stop because some people complained. Here the project was given green signal despite the state of Odisha and its chief minister complaining and that too reportedly without any enquiry. 

The educated tribal view of Niyamgiri and its mining?

Aluminium, Anil Agarwal, Bauxite, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Telegraph, Vedanta 2 Comments »

There are tons of news items alleging how mining in the Niyamgiri hills will destroy the way of living of the Dongria Kondh people. Reputed organizations such as Action Aid and Survival International have strongly campaigned against the mining there and have castigated the state government of Odisha and Vedanta Resources for intending to mine Bauxite in the Niyamgiri hills. The following report from Telegraph gives a different viewpoint that one also needs to read and think about.

From the remote Dongria Kondh village in Sakata to the capital’s Aryan School of Management Information and Technology, Jitu Jakesia has come a long way.

The first from the Dongria Kondh tribe to clear the Class X board examination, the firebrand tribal leader from Muniguda block in Jakesia, is now concentrating on his studies.

He believes that without education, the Primitive Tribal Groups (PTGs) cannot succeed in its mission.

Representing his community before the joint committee of the ministry of environment and forests and ministry of tribal affairs, Jakesia put forward the problems faced by the Dongria community and what should be done to remedy them as per the provisions of the Forest Rights Act.

…“After passing the matriculation examination, I started began attending high school in Muniguda College. I pursued studies in the Arts stream. I completed my graduation from the same college. During my three years in college, I worked as an activist, fighting against industrialisation. I thought that this would make a difference, as I was inspired by NGOs and political parties,” he said.

Jakesia was, however, disillusioned by political parties and voluntary organisations.

“At the end of the day, resources really matter. During my student days, I received no help from voluntary organisation or political party. The members of my family were alcoholics. All these problems forced me to focus on my career as a student and not an activist. I ended up continuing my studies,” he said.

…Regarding industrialisation and its effects on Niyamgiri, Jakesia said: “I realised that for bauxite excavation, only the surface level of the rock is used.

This is unlike iron ore and coal mining, where one has to go below the surface. Thus, the process is fairly smooth. You will be surprised to know that puja offered to Niyam Raja was never performed there. Now, after the spread of awareness, the puja is performed on top of the hill.

He said that there was a time when no one was aware of Niyamgiri.

“If you search on the internet now, you will find thousands of results. The industrial development has given Kalahandi many things. It’s quite visible in the economy and development. So, I do not think development is unnecessary’’ he told The Telegraph.

During submission of his grievances regarding the Forest Rights Act, Jakesia had said: “The revenue officials have made many blunders by marketing forest land as hill land.”

There are many instances where there is no scope for individuals or communities to derive benefits from the Act, as the officials don’t understand the problem.

With so many loopholes, requisite amendments should be made, Jakesia had told the joint committee.

See also the article at http://kalahandia.blogspot.com/2010/07/mining-project-will-bring-development.html and the following youtube video for more on this young man’s views.

The Telegraph article spells the name of the young man incorrectly. His correct name is Jitu Jakasika. If one googles his name one will read many old article where Jitu is fighting against mining. See for example this article at http://www.survivalinternational.org/news/3294 in the pages of Survival International.

State Single Window Clearance Authority approves expansion of Vedanta plants in Lanjigarh and Jharsuguda

Aluminium, Anil Agarwal, Bauxite, Jharsugurha, Jharsugurha- Brajarajnagar- Belpahar, Kalahandi, Single Window Clearance (SLSWCA), Thermal, Vedanta Comments Off on State Single Window Clearance Authority approves expansion of Vedanta plants in Lanjigarh and Jharsuguda

Following is an excerpt from a report in tathya.in.

The State Level Single Window Authority (SLSWA) chaired by the Chief Secretary green signalled projects worth of Rs.37,440 crore.

Expansion of Alumina Refinery at Lanjigarh in Kalahandi from the existing 1 Million Ton Per Annum (MTPA) to 6 MTPA has been allowed.

This project is facing opposition from local people and Union Minister for Forest & Environment, said sources.

Aluminium Smelter at Jharsuguda from the existing 0.25 MTPA to 1.60 MTPA expansion allowed by the Authority, said an official.

Similarly expansion of the Captive Power Plant (CPP) at Jharsuguda from 675 MW to 1350 MW has been allowed, said sources.

These proposals were pending earlier and with the clearance of Single Window Authority, it will go to the High Level Clearance Authority (HLCA) for final clearance, said an official.

Kalinganagar sees light and allows Tatas to build its infrastructure; Paradeep/Kujanga/Dhinikia in the right path with POSCO; Puri and Kalahandi still have their head buried in the sand

Aluminium, Anil Agarwal, Bauxite, Bhubaneswar- Cuttack- Puri, Iron Ore, Jagatsinghpur, Jajpur, Jajpur Rd- Vyasanagar- Duburi- Kalinganagar, Kalahandi, Paradip - Jatadhari - Kujanga, POSCO, Puri, Steel, Tatas, TOI, Economic Times 6 Comments »

Following is from an article by Nageshwar Patnaik in Economic Times. Nageshwar is a big critic of the Tatas. So coming from him, I give a lot of value to the article.

Buoyed by successful resettlement of displaced persons after five years, Tata Steel, which is setting up a 6-mtpa steel plant at Kalinga Nagar in Orissa’s Jajpur district, has undertaken massive infrastructure development work at the project site to get support of the local people, especially the tribals.

Under its Tata Steel Parivar resettlement and rehabilitation (R&R) programme, the leading steel producer of the country has laid 20 km of quality motorable roads connecting all rehabilitation colonies, besides constructing 32 km of drainage system at adjoining tribal-dominated villages such as Trijanga, Sansailo and Gobarghati.

As many as 300 sodium vapour halogen lamp posts have been installed and pipe water provision made to provide better life to the displaced people living in rehabilitation colonies.

Each colony in the project area has a dispensary, community centre and several education centres offering management and technical courses.

“The Tata Steel Parivar rehabilitation scheme at Kalinga Nagar provides substantially better facilities than the government-framed R&R policy. The government policy provides employment for one member from each core household. On the other hand, Tata Steel Parivar policy provides employment opportunities for each major member of the core house. It also provides training facilities for technical skill upgrade,” a press statement, issued by the company here on Thursday, said.

The release also noted that scholarships were being provided for displaced persons pursuing higher education in professional fields such as medicine, engineering and management.

“An amount of Rs 2.21 lakh is also provided as onetime assistance in lieu of employment. Further, under the Tata Steel Parivar policy, each family is given a monthly maintenance allowance of Rs 2,000-2,300 till they get employment in the plant whereas the policy stipulates payment of maintenance allowance for 12 months only,” it added.

The opposition in Kalinganagar has finally seen light and allowed the Tatas to build the infrastructure of Kalinganagar. Related to this, The Telegraph of UK has apologized to the Tatas for their negative coverage.

Things also seem to be going in the positive direction in the POSCO front and I hope the people there visit Tata’s colonies in Kalinganagar and demand and get similar or better facilities and form a positive partnership with POSCO. In addition the Odisha government should push POSCO in developing a POSTECH like University in Paradeep.

However, there is not much progress with respect to Vedanta Aluminum in Kalahandi or Vedanta University in Puri. Here again it would be wise for the people there to visit Tata’s colonies Kalinganagar and demand and get similar or better facilities and form a positive partnership with Vedanta. But the time may be running out for Puri as Vedanta University Project has indicated that it may give up and move south where it will be welcomed with open arms. If that happens it would of course be a mistake of a century for Puri and Odisha.

In regards to the Arcelor-Mittal and Keonjhar the company really has not made much visible effort to woo the people.

Update on RSB Metaltech’s projects in Odisha

Aluminium, Aluminum ancilaries, Bauxite, Dhenkanal, Rayagada Comments Off on Update on RSB Metaltech’s projects in Odisha

Following is from a report in Financial Express.

Work on acquisition of land and obtaining of clearances for the twin-site Rs 9,000 crore RSB Metaltech Ltd’s project involving bauxite mining and setting up an alumina refinery unit at Rayagada and a 0.7 million tonne per annum (mtpa) smelter unit plus a 500 MW power plant to be set up at Kamakshyanagar in Dhenkanal in Orissa, are progressing satisfactorily.

… The company intends to transport processed alumina from its Raigada plant to Kamakshyanagar in railway rakes.

“Work on land acquisition as well as environmental clearance has already started; the Orissa government has given final clearance to 1,520 acres of land for the Raygada project and 1,546 acres for the Kamakshyanagar project”, said RSB Metaltech managing director S K Behera, speaking to FE.

The company had applied to the state government for around 3,000 acres of land for each of the sites.

Initial environmental clearance for the project, as well as clearances from the railways, and for water for the plants from the state government has also been obtained.

…  as per the MoU with the Orissa government, RSB Metaltech has entered into a joint venture with Orissa Mining Corporation (OMC) for bauxite mining and an alumina refinery at Rayagada.

Simultaneously, the company is to set up a 0.7 mtpa capacity smelter plant at Kamakshyanagar which would feed aluminium metal to the 50-odd downstream units that are to come up and which would be manufacturing construction products, auto components like cylinder head, cylinder block, gear box, clutch housing, etc.

Both the Kamakshyanagar and Rayagada units which are expected to become fully operational in five years’ time would together be able to give employment to around 12,000 people, said Behera.

“We will like to invite certain companies to use the hot metal (aluminium) available with us, who will immediately process it (the hot metal) to make auto components and other products and thus save on cost”, said the RSB Transmissions managing director, adding that while some of the downstream units would be fully owned by the RSB group, several others including a number of export-oriented units would be on joint venture basis.

Samaja’s Shilpayana Supplement: Mineral resources of Odisha

Bauxite, Chromite, Coal, Diamond, Gemstones, Granite, Iron Ore, Natural Gas, Oil Comments Off on Samaja’s Shilpayana Supplement: Mineral resources of Odisha

Update on Aditya Birla group’s projects in Odisha

Aluminium, Bauxite, Birlas, Koraput, Koraput- Jeypore- Sunabedha- Damanjodi, Sambalpur, Sambaplur- Burla- Bargarh- Chipilima, TOI, Economic Times 2 Comments »

Following is an excerpt from a report in Economic Times.

Aditya Birla Group chairman, Mr Kumar Mangalam Birla is very hopeful of completion of the Rs 4,500-crore alumina refinery plant coming up at Kashipur in Koraput district and expansion of Hindalco aluminium smelter project at Hirakud in Sambalpur district

… In June last year, the Orissa government had recommended the union mining ministry to allot mining lease of Lakharis bauxite deposit in Koraput district in favour of Hindalco Industries Limited, the flagship company of Aditya Birla Group.

This is the second bauxite deposit to be allotted to the Group, which entered into a memorandum of understanding (MoU) with Orissa government in April, 2005 is to set up a world-class aluminium complex in the state.

Officials said the Lakharis mine is estimated to have about 45 million bauxite deposits.

Earlier, the Hindalco was allotted Kodingamali bauxite deposit in the district for its proposed aluminium complex at Kansari.

Aditya Aluminium (another unit of Hindalco) had signed a MoU with the Orissa government on April 8, 2005 to set up an integrated aluminium complex in the state. The project involves a total investment of Rs 11,500 crores for production of 1.5 lakh tones of alumina and 3.25 lakh tonnes of aluminium per annum.

Aditya Aluminium has already signed a joint venture umbrella agreement with the Orissa Mining Corporation for bauxite mining in Koraput district.

The company has sought 2012 acres of land for its refinery and 3331 acres for the smelter, sources said.

The state government is in the process of acquiring land for the project, but faces problem in some villages, the sources added resulting in the delay in grounding of the project.

Update on Vedanta’s plan with respect to Odisha: steel plant in partnership with L & T; hostel for engineering college in Bhawanipatna; trauma unit in Bhubaneswar

Aluminium, Anil Agarwal, Bauxite, Bhubaneswar- Cuttack- Puri, Business Standard, Iron Ore, Jharsugurha, Jharsugurha- Brajarajnagar- Belpahar, Kalahandi, Khordha, Steel, Thermal, Universities: existing and upcoming, Vedanta 1 Comment »

Following are excerpts from a report in tathya.in.

Odisha’s Power sector gets a relief as the first Unit of 2400 Independent Power Plant (IPP) at Jharsuguda would be commissioned in coming Summer’, he said to the media after meeting the Chief Minister.

This will add 600 MW to the state’s power production capacity and can help the State Government in facing the current power crisis. 

Mr. Agarwal revealed that construction work of world class Vedanta University near Puri has already started. 

At the first stage, the University will have a 1000 bed super specialty hospital and Medical College, also academic building. 

Vedanta Boss also informed the meeting that Lanjigarh refinery is fully operational by sourcing bauxite from other states, incurring a huge opportunity loss for both states as well as company. 

State Government has assured to look into the issue seriously and try to work out for an immediate solution. 

Construction activities for a specialized burn and trauma care centre at Bhubaneswar would begin very soon.

Following is an excerpt from a report in Business Standard.

After committing an investment of Rs 60,000 crore on various projects in Orissa including an aluminium smelter plant, an alumina refinery unit and a mega university project, London-based Vedanta Resources Plc has now evinced interest in setting up a steel plant in the state.

Vedanta plans to set up the steel plant in collaboration with engineering and construction major Larsen and Toubro (L&T).

… However, he did not provide details like capacity of the proposed steel plant, location and investment. It may be noted that in October 2004, Sterlite Iron and Steel Company, a subsidiary of Vedanta Resources, had inked an MoU (Memorandum of Understanding) with the state government for setting up a five million tonne per annum steel plant. The steel plant was to set up at Palasponga in the state’s Keonjhar district at an investment of Rs 12,502 crore. However, the project is yet to take off.

On bauxite supplies, Agarwal said, he has informed the state chief minister that Vedanta’s alumina refinery plant at Lanjigarh in Kalahandi district is operational and the company is sourcing bauxite from other states to run this refinery.

The chief minister has assured that us that bauxite supplies would not be a problem in Orissa which has the fourth largest deposits of the mineral ore in the country, Agarwal informed.

He further said the company is adhering to the environmental norms in running the Lanjigarh refinery, adding, “Our refinery at Lanjigarh is a world class refinery and it is a zero discharge and zero waste unit. …"

He pointed out that the company would commence mining operations at Niyamgiri hills in Kalahandi district after getting the environmental clearance.

Agarwal said, Vedanta has already invested Rs 39,000 crore on various projects in Orissa and these projects have generated direct and indirect employment for about two lakh people.

Vedanta Aluminium has also decided to set aside five per cent of its net profit or Rs 10 crore every year on welfare activities of the tribals of Lanjigarh. The amount will be spent on meeting the needs of the tribals in areas like education, livelihood and health.

The company will also build the hostel for the proposed engineering college of the state government at Bhawanipatna.

On the 2400 MW (6×400) power plant at Jharsuguda, Agarwal said, the first unit of the independent power project (600 MW) will be operational from the ensuing summer.

Talking on the company’s proposed university project, he said, “We have huge local support for our university project and at first we will set up a 1000 bed state-of-the-art hospital as a part of the project.” Apart from the 1000 bed hospital, Vedanta has also firmed up plans to set up a 100-bed burn and trauma care centre at Gangapada on the outskirts of the city. Construction work on this centre wold take off very soon, Agarwal stated.

Satus of application for Bauxite mining by the Orissa Mining Corporation (OMC) through Vedanta in Kalahandi and Rayagada districts

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, Kalahandi, Rayagada, Vedanta Comments Off on Satus of application for Bauxite mining by the Orissa Mining Corporation (OMC) through Vedanta in Kalahandi and Rayagada districts

Following is from PIB http://pib.nic.in/release/release.asp?relid=54712.

Minister of State (Independent Charge) Shri Jairam Ramesh received a large number of representations in regard to the project for bauxite mining by the Orissa Mining Corporation (OMC). In a statement issued here today he said the projects are now being examined in the Ministry for approval or rejection so that there is no ambiguity and project proponents do not misuse the ‘in-principle’ approval. 

The following is the text of Shri Jairam Ramesh on the issue of bauxite mining in Orissa: 

“I have been receiving a large number of representations in regard to the project for bauxite mining by the Orissa Mining Corporation (OMC) through Vedanta, a private mining company in Kalahandi and Rayagada districts of Orissa. The total amount of forest land proposed to be diverted is 660.749 ha., of which around 353.14 ha is in the Niyamgiri reserved forest. Concerns have also been raised on the impact that this project will, interalia, have on livelihoods of tribal communities. 

The project application was received in the Ministry of Environment & Forests (MoE&F) on February 26, 2005. The MoE&F gave ‘in-principle’ approval for this project on December 11,2008 under the Forest Conservation Act,1980. This ‘in-principle’ approval is to be converted to a final approval after the fulfillment of stipulations contained in the ‘in-principle’ approval. 

As the representations started coming in, on August 6, 2009 the MoE&F asked the Regional Chief Conservator of Forests, Bhubaneshwar to investigate complaints that project activities have started even without the final approval of the Central Government in violation of the Forest Conservation Act, 1980. The site was inspected and the site inspection report was submitted on August 16,2009. The site inspection report found that construction activity had begun in the non-forest revenue land. Technically this is not a violation of the law but it is a violation of the guidelines issued by the MoE&F which says that when a project involves non-forest and forest lands, construction in the non-forest land should not begin without clearance for activity in the forest land itself. A letter has been issued on November 25th,2009 to the Orissa Government asking for an explanation as to how the violation of this guideline has been permitted. 

On August 3, 2009, the MoE&F had issued a binding guideline to all State Governments that application for diversion under the Forest Conservation Act, 1980 would be considered only after all due processes contained in the Scheduled Tribe and Other Forest Dwellers (Recognition of Rights) Act, 2006 have been fully and satisfactorily completed. A letter was subsequently issued by the MoE&F to the Orissa Government on November 3, 2009 directing the State to comply with the provisions of the Scheduled Tribe and Other Forest Dwellers (Recognition of Rights) Act, 2006 and provide evidence for the compliance before the Centre could examine conversion of the ‘in-principle’ approval to final approval. The reply of the state government is awaited. In addition, another site inspection team is being sent in the next one week to verify fresh allegations of violations of the terms of the ‘in-principle’ approval under Forest Conservation Act,1980. 

The new policy of the MoE&F does away with the concept of ‘in-principle’ approval. Projects are now being examined for approval or rejection so that there is no ambiguity and project proponents do not misuse the ‘in-principle’ approval.” 

KP/

Investment proposals in Orissa that are waiting for final approval

Aluminium, Angul, Anil Agarwal, Anugul- Talcher - Saranga- Nalconagar, Bauxite, Birlas, Business Standard, Coal, Dhenkanal, Iron Ore, Kalahandi, Keonjhar, Koraput, Nayagarha, Rayagada, Sambalpur, Sambaplur- Burla- Bargarh- Chipilima, Sponge Iron, Sundergarh, Tatas, Thermal, Vedanta Comments Off on Investment proposals in Orissa that are waiting for final approval

Following is an excerpt from a report in Business Standard.

… Projects awaiting the chief minister’s nod include those proposed by National Thermal Power Corporation (Rs18,000 crore), L&T-Dubal (Rs 19,668 crore) and Lanco Babanh Power (Rs 11,402 crore) among others.

… The SLSWCA in its meeting held in March 2007 cleared the Rs 4232.54 crore investment proposal of Ashapura Minechem Ltd for setting up of a 0.5 million tonne per annum (mtpa) alumina refinery and 0.15 mtpa smelter with 300 Mw captive power plant (CPP) in Koraput district.

Similarly, NTPC proposal to set up a 3200 Mw thermal power project at Darlipali in Sundergarh district was approved by the SLSWCA in February 2008.

The fate of L&T’s proposal to set up an alumina-aluminium complex at Kusumsila near Rayagada and Vadrapali near Sambalpur in joint venture with Dubal is still uncertain.

Sources said, the HLCA is yet to consider the Rs 8,250 crore investment proposal of Orissa Thermal Power Corporation Ltd (OTPCL) to set up a 2000 Mw coal based power plant at Rengali. It is also yet to take up the Lanco Babandh Power’s application to enhance the MoU capacity from 1320Mw to 2640 Mw at Kurunti and Kharagprasad in Dhenkanal district.

The Rs 3101.86 crore proposal of Tata Sponge Iron to set up a 1.5 mtpa steel making capacity at Beliapada near Joda, recommended by the SLSWCA in May this year, is also pending for approval by the chief ministers.

… Though VAL had proposed to expand the capacity of its existing refinery at Lanjigarh from 1 mtpa to 6 mtpa, smelter plant capacity from 0.25 mtpa to 1.6 mtpa and the captive power plant (CPP) capacity from 674 Mw to 1350 Mw with a combined investment of Rs 37,440 crore, it was cleared in part by the SLSWCA.

The SLSWCA meeting held in May this year had recommended for a smelter capacity of 0.5 mtpa as the company had already achieved this level while approving the capacity expansion of the CPP to 1350 Mw without any increase in the refinery capacity.

Similarly, Hindalco Industries Ltd (Aditya Aluminium) had proposed to expand its alumina refinery capacity to 1.5 mtpa from 1 mtpa and expansion of its smelting capacity to 0.72 mtpa from 0.26 mtpa along with an increase in the CPP capacity to 1650 Mw from 650 Mw.

SLSWCA has only recommended a marginal increase in the smelting capacity from 0.26 mtpa to 0.36 mtpa and CPP capacity from 650 Mw to 950 Mw to the HLCA. Partial approval of these proposals was officially attributed to the non-availability of bauxite linkage and pending the final report of the environmental carrying capacity study taken up by the Orissa State Pollution Control Board.

That apart, the SLSWCA in its meeting on 26 August 2009 also recommended two projects of Rs 14,275 crore to HLCA. The Rs 7988 crore proposal of JR Powergen Private Ltd to set up a 1980 Mw power plant at Kishorenagar near Angul and BRG Energy Systems’s proposal to set up a 1320 Mw power plant at an investment of Rs 6287 crore at Bhapur in Nayagarh district are yet to be approved by HLCA.

Center to approve Ad Valorem royalty on non-coal minerals: Wall Street Journal

Ad Valorem, Bauxite, Chromite, Gemstones, Granite, Iron Ore, MINES and MINERALS, Mining royalty 4 Comments »

(Thanks to Umashankar babu for the tip.)


Following is an excerpt from a report in the Wall Street Journal.

India’s federal government has approved an increase in mining royalties for various minerals including iron ore, copper, zinc and lead, government officials said Wednesday.

Two mining ministry officials, who didn’t want to be named, told Dow Jones Newswires that India’s cabinet committee on economic affairs has approved the proposal for changes in royalties on minerals other than coal, and a formal notification with immediate effect is expected this week.

…  The change in rates will increase states’ annual revenue from royalties to 46.3 billion rupees ($968.6 million) from 22.88 billion rupees.

… The officials said the government will levy a 10% value-added or ad valorem royalty on iron ore mining.

For iron ore miners, the new royalty will mean switching to a tax regime under which they will be charged based on the market value of the minerals compared with the existing system of flat rates based on weight, the officials said.

At present, the government charges a fixed royalty of up to 27 rupees a metric ton on different grades of iron ore.

Iron ore spot prices in the local market may rise by about 10% in the near future, … said Rahul Baldota, …  But he added that iron ore producers in India, the world’s third-largest supplier of the commodity, will absorb the cost for exports in order to remain competitive.

…  India already charges value-added royalty rates for zinc, copper and lead, but the rates charged will now increase.

The government will charge an 8% royalty on zinc ore, up from 6.6% earlier, while the rate on copper will rise to 4.2% from 3.2%. The royalty on lead ore will go up to 7% from 5%.

On bauxite used for other than alumina and aluminum extraction and exports, a royalty of 25% will be charged. For use in alumina and aluminum extraction, the rate will be 0.5%. Previously, no royalties were charged.