Orissa probe gives clean chit to Vedanta

BHUBANESWAR - Metals and mining major Vedanta has not violated any government guidelines at its mining site in Orissa’s Kalahandi district, a state investigating team has said.

Union Environment Minister Jairam Ramesh last week said a probe had found construction work had started on land that belonged to the revenue department.

However, the investigating team said in its report that Vedanta had carried out no illegal construction activities at its mining project.

The construction has started in the non-forest area which the government has already handed over to the firm and it is not unlawful, the district officials said in the report submitted to the state government Monday.

“There was no construction by the firm either found in the mining lease area or outside of the plant area,” a government official told IANS Tuesday.

Orissa’s Steel and Mines Secretary Ashok Mohadeo Rao Dalwai had last week asked the district authorities of Kalahandi to probe the alleged violations of Vedanta after the central government sought explanation from the state.

The environment ministry had asked the state government to explain why the controversial bauxite mining project by Vedanta had been allowed to start work in violation of the ministry guidelines.

Ramesh had said in a statement that his ministry would send an inspection team to verify allegations of violation of terms.

However, the state’s investigating team said all construction activities undertaken by the company were “legal”.

The project to mine bauxite at the Niyamgiri hills - sacred to the locals - has been vehemently opposed. It envisages mining in protected forest area too.

Vedanta Alumina, part of the Anil Agarwal-promoted Vedanta Resources Plc, has built an alumina refinery at an investment of $800 million in the area in Kalahandi district, where production has already started.

The firm, which is currently sourcing bauxite from other states at market rates, said mining permission in the hills was essential for it to reduce cost of production.