Jairam Ramesh, industry in patch-up mode

Environment minister softens stand on stalled projects of Lavasa, Posco and Vedanta.

The environment ministry’s relationship with industry, which has not been the warmest since Jairam Ramesh took charge of the portfolio a year-and-a-half ago, is showing signs of a thaw with both the sides softening their stand on the stalled projects of Lavasa, Posco and Vedanta Resources.

With two days to go before hearing in the case related to Lavasa’s hill city comes up in the Bombay High Court, Hindustan Construction Company (HCC) Chairman Ajit Gulabchand said today that he was looking at an out-of-court settlement with the Ministry of Environment & Forests. HCC is Lavasa’s mother company.

“At present we are in discussion to find an amicable solution mutually and we are in that process,” Gulabchand said after spending half-an-hour with the environment minister at his office.

Asked whether he would look for an out-of-court settlement, Gulabchand said: “When you talk about an amicable solution, it means out-of-court.”

Earlier in the day, news agency Reuters, based on a conversation with Ramesh, reported that the minister would take a decision in seven days on granting clearances to South Korean steelmaker Posco’s $12-billion steel mill in Orissa.

Reuters had reported earlier that Ramesh was ready to consider clearances for the expansion of Vedanta Resources’ refinery in Orissa provided the company met certain conditions.

The message to Vedanta echoed the one to Lavasa, in which the ministry said it was ready to consider for clearance the company’s hill-side project near Pune on conditions that included a hefty fine and a large environment restoration fund the company would have to set up.

The message to Lavasa, when first sent, did not evoke a similarly friendly overture, with the company alleging that the ministry did not have “objective and measurable norms”. Today, however, was a different story. Gulabchand sounded much-mellowed, just as Ramesh has been of late.

Earlier, in the day, the minister, speaking at an event organised by the Federation of Indian Chambers of Commerce & Industry, said he might give the green signal to Lavasa.

“We are trying to find a negotiated solution...,” Ramesh told reporters. However, the minister made it clear that the environmental norms would not be diluted.

“The environmental integrity has to be maintained,” the minister said.