Stringent terms set for Lavasa project review

Firm says environment ministry’s order more on jurisdiction

The proverbial light gleamed at the end of the tunnel today for Lavasa Corporation. The ministry of environment & forests agreed to consider clearance to the company’s hill-side project near Pune, subject to stringent conditions.

The light, however, is a thin ray as the conditions include a hefty fine on the company and a large environment restoration fund it will have to set up. This fund will be managed by an independent body under the ministry’s supervision. For now, there can be no construction at the site.

The amounts of the fine and the fund will be decided after the company submits the detailed project report, details of future planning, and audited statements of amounts spent directly or indirectly on the project since inception. “It is impossible even to hazard a guess, as it depends entirely on the ministry,” said an executive of the company who would not be named given the sensitive nature of the case.
 

THIN RAY 

* Lavasa to pay hefty fine, set up a large restoration fund

* Company asked to submit a detailed project report

* Degradation done to be rectified in time-bound manner

The ministry will impose stringent terms and conditions to ensure that no further environmental degradation takes place and that the degradation already done will be rectified on a time-bound schedule. The ministry would like the company to draw up a comprehensive environmental impact assessment report and management for the project.

Lavasa, the dream venture of Ajit Gulabchand-managed Hindustan Construction Company (HCC), has been stalled since the ministry asked the company on November 25 to stop work at the site, citing violation of environment regulations. Lavasa, for its part, challenged the order in the Bombay High Court.
 

TIMELINE
Jun ‘01:	Lavasa project gets state urban development in-principle approval
Mar ‘04:	Project gets state environmental clearance for development
APR ‘08:	Union environment ministry clearance for 110-KV transmission line
APR ‘09:	Union environment ministry in-principle approval for road widening
Mar ‘10:	State fire advisor grants provisional NOC to Lakeview Apartments
Nov ‘10:	Union environment ministry issues Lavasa stop-work order
Nov ‘10:	Lavasa files a petition in the Bombay High Court
Jan ‘11:	Union environment ministry sets tough terms for project review

This stalemate appeared to end today, as the ministry said it was “prepared to consider the project on merit with the imposition of various terms and conditions which include payment of substantial penalty for the violation of environmental laws”.(POSCO UPBEAT)

In response, Lavasa Corporation said the ministry’s order was more on jurisdiction than on environment issues and alleged that the ministry did not have “objective and measurable norms”. It accused the ministry of amplifying minor faults and of ignoring the environmental work done at the site.

HCC’s shares today settled 3.98 per cent lower at Rs 39.80 on the Bombay Stock Exchange. That was a recovery, as the shares had in intra-day trades fallen 7.84 per cent to a month’s low of Rs 38.20.