Lavasa still awaits green nod despite PMO intervention

Lavasa Corporation is still awaiting clearance from the Union ministry of Environment (MoEF) on its planned hill city project near Pune. The ministry is treading cautiouslyeven after the company agreed to accept its pre-conditions.

The ministry had issued a stop-work order last November, saying enviromental clearances had not been taken and rules were breached. Lavasa is promoted by Hindustan Construction Company.

Although the Prime Minister's Office (PMO) sought a brief from the environment ministry on the final status of the Lavasa case late last month, MoEF is taking its time to go through each issue, given the complex nature of the project, an official said. The PMO had especially asked the ministry to give details on the difference of opinion on environmental clearances between the ministry and its expert appraisal committee (EAC).

Earlier, the EAC had cleared phase-I of the project, with certain riders. But then minister Jairam Ramesh disagreed with the EAC report and denied clearance. According to officials, the company had approached the PMO to expedite the process.

It had also petitioned the HC at Mumbai. At the most recent hearing, on September 5, the MoEF had said it would pass its final order within three weeks. According to Lavasa officials, the project is incurring a loss of Rs 2 crore a day.