HC too rejects Vedanta expansion plan

CUTTACK: The expansion plan of Vedanta Alumina Limited (VAL) for its refinery and captive power plant at Lanjigarh in Kalahandi district has hit a major roadblock. The Orissa High Court on Tuesday upheld the Centre’s decision of stalling the expansion bid and withdrawing the terms of reference (ToR) granted to the company. However, a Bench of Chief Justice V Gopalagowda and Justice B N Mohapatra allowed the company to submit a fresh application to the Union Ministry of Environment and Forests (MoEF). The process has to start de novo, the court ruled. The VAL had challenged the Centre’s rejection of its expansion plan in the High Court and the judgment had been reserved since February. The company has two options __ either move the Supreme Court or file a plea for expansion afresh in MoEF as directed.   Earlier, the court had issued notice to the Central Government and directed the Assistant Solicitor General to submit the response of the MoEF. In its reply, the MoEF had stated that Vedanta had violated the conditions imposed in the Environmental Impact Assessment notification issued in 2006 with regard to various environment and forest clearances. The permission for expansion was withdrawn and a fresh notification issued in November 2010. Directions were also issued to the company to make fresh applications. Vedanta had sought to expand its refinery capacity from 1 to 6 MTPA and captive power plant from 75 to 300 MW. It had, in fact, gone ahead with the construction work under its expansion project even before obtaining the environment and forest clearances. The MoEF took note of the violations and ordered halt to the construction work while directing the State Government to take legal action against the company. Vedanta then filed the writ petition challenging the order and also cancelling the public hearing held on  April 25, 2009. About 15 PILs were filed in favour of Vedanta’s expansion but all, barring one, were subsequently withdrawn.  The MoEF had also informed the company that any fresh proposal shall not be construed as regularisation of earlier violations committed by undertaking construction work without prior permission.