CAO to assess complaint against Lafarge Surma Cement

The complaint raises concerns about legitimacy of the land acquisition in Meghalaya

The compliance advisor/ombudsman (CAO) is assessing a complaint filed against Lafarge Suma Cement's land acquisition and limestone quarrying operation close to villages of Shella and Tynger in Meghalaya.

CAO, an independent recourse mechanism for projects supported by the World Bank Group, said a complaint was filed by a number of individuals in the state on the Indian side of the project in January last year.

"CAO found the complaint eligible for further assessment in January 2014 and has begun conversations with the key parties ... An assessment of the case is ongoing," it said.

IFC, the World Bank arm, partly financed a project with Lafarge Surma Cement for the construction and operation of an integrated cement plant in Bangladesh which is very close to the border with Meghalaya, from where the limestone is sourced.

"The complaint raises concerns about the legitimacy of the land acquisition and use process for the project's limestone quarrying operation close to the villages of Shella and Tynger in Meghalaya," it said.

The complainants further state that Khasi indigenous people have been deprived of their land, their livelihood has been impacted, and their customary land rights and systems have not been respected, CAO said.

A limestone quarrying and crushing operation located in Meghalaya serves the cement plant and the two centres of operations are connected by an overhead belt conveyor.

IFC approved an A loan of USD 35 million, a B Loan of up to USD 10 million and equity of USD 10 million in 1998, and invested in 2003.