Also allows Sterlite to go ahead with bauxite mining, sets terms

Sterlite Industries, the parent firm of London-listed Vedanta Resources, had wanted the court’s permission since it proposed to divert about 660.749 hectare of forest land for mining purposes to feed its alumina plant.

The three-member bench comprising Chief Justice K G Balakrishnan, Justices Arijit Pasayat and S H Kapadia allowed Anil Agarwal-promoted Sterlite to go ahead with bauxite mining.

However while giving its clearance, it asked the nodal authority, the Ministry of Environment and Forest (MoEF), to proceed in accordance with law.

Justice Kapadia while reading the order said: “We are approving the suggestions” of Sterlite which had agreed to deposit with the special purpose vehicle — Lanjigarh Scheduled Area Development Foundation — 5 per cent of the annual profits before tax and interest from Lanjigarh project, consisting of bauxite mining and alumina refinery, or Rs 10 crore per year whichever is higher.

It would make a payment of the net present value of Rs 55 crore and Rs 50.3 crore towards wildlife management plan for conservation and management of wildlife around the mine and Rs 12.2 crore towards tribal development, Sterlite had stated in its application.

Sterlite has suggested that the majority share of 49 per cent of SPV should be with it, 26 per cent with the Orissa Government and 25 per cent with OMC. In November 2007, the bench had declined permission to Vedanta Alumina, the local unit of London-listed Vedanta Resources to mine bauxite, but had opened door for its another Indian associate Sterlite to extract the mineral in collaboration with the state government subject to certain conditions.