The Hindu Business Line : SC okays forest clearance for Posco, Sterlite projects

Project details
Posco’s captive port & Rs 51,000-cr steel project needed 4,004 acres of which 2,953 acres were forest land.
Sterlite to undertake bauxite mining in 660 acres in Orissa’s Niyamgiri hills. The co was also facing resistance from the local Dongria Kondh tribe.

Our Bureau

New Delhi, Aug. 8 In a significant ruling that may boost the morale of the investing community, the Supreme Court on Friday gave its go ahead for diversion of forest land for construction of a captive port and steel plant by Korean-steel manufacturer Posco and for mining bauxite ore by Sterlite Ltd, part of the London-based Vedanta group.

Both the projects were at the centre of controversy on environmental grounds and have been facing stiff opposition from the local population and green groups.

Posco’s Rs 51,000-crore steel project, the largest foreign direct investment in the country, needed 4,004 acres of which 2,953 acres were forest land and needed to be converted into non-forest land before it could be handed over to the company for setting up its port and manufacturing facility. The apex court on Friday approved diversion of the acreage under forest cover. The company had been facing severe opposition from local farmers and non-Government organisations over the issue.

In the case of Sterlite, the apex court cleared the company’s proposal to undertake bauxite mining in 660 acres in the ecologically-sensitive Niyamgiri hills in Orissa. Apart from environmental objections, the company was also facing resistance from the local Dongria Kondh tribe, which considers the hills as sacred heritage.

On the concerns of the tribal community, the three-member Supreme Court bench headed by Chief Justice Mr K.G. Balakrishnan in his ruling said that Sterlite would have to pay 10 per cent of its profit or Rs 10 crore, whichever is more, for the welfare of the tribals. The Niyamgiri hills mines will cater to Sterlite’s Lanjigarh alumina plant.

Sterlite, responding to the court order, in a statement said that it was “happy that the project has been approved. We are committed to implementing the project in accordance with the guidelines and safeguards laid down by the court.”

“The bauxite mining project along with the alumina refinery in Kalahandi will bring significant employment and economic livelihood for the local people,” the company said.

Posco happy

The chief of Posco India, Mr Vikas Saran, told Business Line, “We are very happy that with the SC clearance we will be able to progress fast.” Explaining the modalities involved, Mr Saran said that there are still several steps before the company finally gets possession of the land to start work.

“Following the court order, the Ministry of Environment & Forest (MoEF) will issue an executive order to the Orissa Government stipulating certain conditions and the State Government will have to send back a compliance report. After the MoEF sends another order, the district administration will hand over the land,” he said.

Mr Saran said that the apex court had expressed concern about raw material security for the company’s proposed plant and the Orissa State Mining Corporation has agreed to supply uninterrupted iron ore to the company. The State body will supply the iron ore from its mines located 300 km away from the project site.

According to agency reports from Orissa, the local population and environmental groups are opposed to the companies being given the green signal from the apex court. Hours after the ruling, Green Kalahandi, a body of agitating tribals, said, “The interests of Dongaria Kondhs and ecology are ignored while considering Sterlite’s application for forest land diversion for mining purpose.”

“We will ensure that the Ministry of Mines does not accord mining licence to the company,” the Green Kalahandi Chairman and former union minister, Mr Bhakta Charan Das, said.

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