Vedanta may apply afresh for green nod

Vedanta Aluminum Ltd (VAL) is open to make a fresh proposal to obtain environmental clearance for the expansion plans at its aluminum unit in Lanjigarh, Orissa.

However, the company said it wanted the government to consider its application on par with other companies like Lavasa, Posco, SAIL and Jindal Power Ltd, who had recently got a green nod for their projects. “We are open to the idea, provided we are treated at par with other companies (by the Ministry of Environment and Forests),” a senior company official said.

Vedanta is keen on initiating a dialogue with the environment ministry to understand what process it needs to follow to fast track the clearance.

The decision comes after the Orissa High Court upheld the Centre's decision to stall expansion of its refinery plant at Lanjigarh. The high court, however, had allowed VAL to make a fresh bid to obtain environmental clearance from MoEF to expand its existing units.

According to the court order, the petitioner (Vedanta) had not applied for the expansion project following the due procedure as has been done by Jindal Power Ltd. The order said, as and when the proposal is submitted by the petitioner, a similar procedure would be followed as in the case of Jindal Power Ltd.

In the case of Jindal Power, the MoEF had withdrawn the Terms of Reference (first stage of clearance) in June, 2010. However, the company got the clearance for its 4x60OMw coal-based power project at Tamnar in Raigarh district of Chhattisgarh earlier this year.

MoEF had scrapped the proposal for the six-fold expansion of the VAL refinery, from one million tonnes per annum to six million tonnes, last year. The MoEF had also asked Vedanta to re-apply for its expansion plans.

Challenging the MoEF order, VAL had moved a petition before the high court.

In August 2007, VAL had applied to the environment ministry for expanding its existing refinery capacity and that of its captive power plant.

The company, subsequently, went ahead with construction work for refinery expansion without prior environmental clearances. A report by the N C Saxena committee in August 2010 found VAL had proceeded with the construction for its expansion without obtaining the clearances.

While substantial expansion work was in progress, the ministry invoking its power under the Environment (Protection) Act-1986, had ordered the company to maintain a status quo at the plant site and directed the Orissa Government to take legal action against the company for violating the Environment Impact Assessment (EIA) notification of 2006.

VAL is an associate company of the globally diversified, Vedanta Resources plc. Incorporated in 2001, VAL is a producer of metallurgical grade alumina and other aluminium products.

The Niyamgiri bauxite mining plan of the company linked to the refinery is mired in controversy. Clearance was cancelled by the environment ministry on which the National Green Tribunal is holding a hearing.