SC okays Posco, Sterlite projects with riders

The Supreme Court (SC) today gave the long-awaited green light to the Sterlite and Posco projects in Orissa, but imposed certain conditions to address environmental concerns and rehabilitations of the tribals living in the region.

The special bench headed by Chief Justice K G Balakrishnan today cleared the forest diversion proposal (FDP) of the Rs 51,000-crore steel project of Posco India. The project also includes a captive port at Paradeep.
 

ENVIRONMENTAL CONCERNS

• The clearance of the forest diversion proposal of Posco would facilitate handing over of the government portion of land to the company to set up the project
• SC asks ministry of environment and forest to ensure the Sterlite project complies with the rules and regulations
• As per conditions imposed by the court in December 2007, 5% of Sterlite’s profit, or Rs 10 cr, whichever is higher, will be utilised every year to maintain ecological balance and for the welfare of tribals

However, the FDP relates only to plant and captive port site of the company as the forest diversion, if any, for the mining site will be decided later.

The company proposed to acquire 4,004 acres for its plant and captive port near Paradip, of which 3,566 acres are government land and the rest 438 acres private land.

Of the total stretch, 3,097 acres has been categorised as forest land. This includes 2,958 acres of government owned and 137 acres of private land.

The clearance of the FDP is expected to facilitate handing over of the land, at least, the government portion, to the company.

“We are pleased with the decision of the Supreme Court. This is a vital clearance for the progress of the project. Now with the decision of the apex court, we can expedite work on land acquisition,” the company said in a statement.

Sterlite will be able to proceed with its Rs 4,000-crore aluminium project in the ecologically fragile Niyamgiri hills. The company had sought clearance for the diversion of 660.749 hectares of forest land for mining purposes.

The bench today also allowed Sterlite to go ahead with bauxite mining. However, it asked the ministry of environment and forest to make sure the project complied with the rules and regulations.

The other conditions imposed by the court in December 2007 will remain in force. According to these conditions, 5 per cent of the profit of the company, or Rs 10 crore, whichever was higher, would be ploughed back each year to maintain the ecological balance of the area and on the welfare of project- affected tribals.

The centrally empowered committee appointed by the SC would supervise the functioning of the project from the viewpoint of the environment and rehabilitation of tribals.