Vedanta sinks over 5% on LSE

Vedanta Resources today sank 5.69 per cent on the London Stock Exchange in early trade, after the Anil Agarwal-led metal giant failed to get an environment clearance for its $1.7 billion bauxite mining project in Orissa.

The scrip opened on weak note and further plunged 5.69 per cent to touch a low of 19.21 pounds on LSE.

Sterlite Industries, the principal subsidiary of Vedanta Resources, too was under selling pressure and dropped 4.22 per cent to Rs 152 on the Bombay Stock Exchange.

Sesa Goa, another Vedanta Group firm, was also down by 1.08 per cent at Rs 324.45 on BSE in afternoon trade.

Sterlite Industries was the worst hit stock in the BSE benchmark Sensex, which was down by 105 points at 18,303.89 points in afternoon session.

Indian government today rejected environment clearance to Vedanta's $1.7 billion bauxite mining project in Orissa on the basis of recommendations by a key panel of the Environment Ministry.

Giving reasons for the denial of clearance, Environment Minister Jairam Ramesh said in New Delhi today that "there has been a very serious violation of Environment Protection Act, Forest Conservation Act and the Forest Rights Act".

The decision came after the Forest Advisory Committee, which had submitted the report to Ramesh after reviewing the suggestions given by the N C Saxena panel seeking ban on the mining project in Orissa's Niyamgiri Hills in view of various violations at the site.