Orissa challenges withdrawal of green nod to Sterlite in SC

The Orissa government today moved the Supreme Court against withdrawal of environmental clearance to Vedanta group company Sterlite's bauxite mining project by the Centre in an "arbitrary manner".

Senior advocate KK Venugopal, appearing for Orissa Mining Corporation (OMC), which is in agreement with Sterlite for bauxite mining at Niyamgiri hills, said former environment minister Jairam Ramesh had passed an order withdrawing the environmental clearance just a day before demitting office.

The order "has been passed in a wholly arbitrary manner and it was difficult to understand the need and urgency for issuing the present order of July 11 to withdraw the environmental clearance itself," the OMC application said.

The Ministry of Environment and Forests (MoEF) withdrew the clearance a day before the Cabinet reshuffle, which saw Ramesh moving to the Rural Development Ministry.

"OMC was surprised to find a day prior to the reshuffle of the Union Cabinet on July 11, the MoEF, after setting aside the recommendations of the sub-group, accepted by the EAC [Environment Appraisal Committee], suddenly stated exactly opposite to what it should have said," the petition said.

Venugopal submitted that no mandatory notice was given for the withdrawal of the environment clearance granted on August 30, 2010.

OMC had approached the apex court three months ago when MoEF had revoked its forest clearance.

Sterlite's controversial $1.7 billion bauxite mining project lies in the forest land of Kalahandi and Rayagada area of the state.

Venugopal submitted that the minister withdrew the clearance for the project despite knowing that the matter was sub-judice, pending before the Supreme Court.

The bauxite mining project is a part of the Vedanta group's 6 million tonne per annum aluminium refinery in Lanjigarh, which is being set up.

A Bench of Justices RV Raveendran and Gyan Sudha Misra today issued notice to the MoEF and directed it to file its reply within a week.

The matter will come up for hearing after two weeks.

The court, meanwhile, also allowed Prafful Samanta, on whose plea the MoEF had taken the action, to file an application to be a party in the matter.