Archive for the 'MINES and MINERALS' Category

Naveen makes demand on new NH designations and more mine royalty; points out super-normal profit by miners and Australia’s steps to levy higher taxes on iron ore

Chief Minister's actions, Iron Ore, National Highways 8 Comments »

Following is an excerpt from a report in ibnlive.com.

Naveen demanded that five State Highways — Berhampur-Koraput, Madhapur-Rayagada, Phulnakhara-Konark, Kuakhia-Aradi-Bhadrak and Palasa-Khariar — be upgraded to NHs.

Following are excerpts from a report in Hindu.

The Orissa Chief Minister, Mr Naveen Patnaik, has sought 50 per cent share in “super normal profit” earned by private mine owners and said he would raise the issue of imposition of a mineral resource tax on iron ore during the National Development Council (NDC) meeting on Saturday.

“Mining companies are making super normal profits in Orissa. People of Orissa deserve 50 per cent of this…a quarter of our population is of tribals and we will put this profit to developing our areas,” Mr Patnaik said.

He said this was essential as most of the mining companies were operating on tribal land without doing justice to the people. Despite the State being the owner of the resources, the mine owners are benefiting beyond any measure of reasonable returns, he said.

“I have already written to the Prime Minister about it. I will be speaking about it in the NDC meeting. Rent-resource tax from the mining companies should be levied on Australia’s pattern,” he said.

In a July 30 letter to the Prime Minister, Mr Patnaik said, “The insatiable demand for iron ore in the export market has resulted in iron ore becoming highly profitable commodity, with returns from mining being far in excess of economically acceptable rates.”

The letter mentioned that the super-normal profits being made are evident from the audited operational profits of 80 per cent by miners, which is unheard of in other industries.

The Chief Minister had sought imposing a 50 per cent mineral resource tax, taking cue from Australia which has decided to levy higher taxes on iron ore from July 2012.

Odisha to expand areas under coffee cultivation to 22,700 hectare by 2021-22 with an investment of Rs 400 crore

Aluminium, Bauxite, Birlas, Coffee development, Ganjam, Kalahandi, Kandhamala, Keonjhar, Koraput, NALCO, New Indian Express, Indian Express, Financial express 4 Comments »

Following are excerpts from a report in ibnlive.com.

The coffee plantation would be taken up in the undivided Koraput district where currently about 1,300 hectares are under cultivation. …

It has been decided to invest the ` 400 crore over a period of 10 years from 2011-12. The ICB would fund ` 35 crore for a programme on organic coffee production in the State. Rest of the funds will be pooled from MGNREGS, Revised Long Term Action Plan (RLTAP) for KBK districts and other schemes.

As per the survey conducted by the Coffee Board, an area of 11,650 hectare in the Koraput, Kalahandi, Ganjam, Phulbani and Keonjhar districts has been found suitable for coffee cultivation.

Public sector industries like Nalco, Hindustan Aluminium Company and a host of private sector enterprises have evinced interest to take up coffee cultivation in about 1,000 acres which is mined for bauxite ore extraction.

 … For Orissa, the Board is implementing a Special Area Programme with the objective of checking ‘Podu’ cultivation, rejuvenating small coffee holdings and expanding coffee plantation in the tribal sector by providing a subsidy of ` l5,000 per hectare.

Besides, the Board is also providing financial assistance for installation of coffee processing units and imparting training to coffee growers on latest coffee husbandry practices and scientific methods of cultivation.

Six hulling units were also supplied under the scheme to the State during 1999- 2000 to process coffee at farm level.

At present, there are about 122 private coffee growers in the Koraput who have taken to commercial cultivation. …

Infrastructure hurdles getting noticed; Some Odisha projects in focus

Aluminium, Anil Agarwal, Bauxite, Business Standard, CENTER & ODISHA, Haridaspur - Paradeep (under constr.), Kalahandi, Talcher - Bimlagarh (under constr.), Vedanta 6 Comments »

In the following excerpts from a report in Business Standard Haridaspur-Paradip and Talcher-Bimlagarh are listed as strategic projects. I hope they are fast tracked.

… Delays in land acquisition and forest clearances continue to stand in the way of completing strategic projects like the 82-km Haridaspur-Paradip line and the 154-km link between Talcher and Bimlagarh, both in Orissa. While the first project is to give good port access to units in the steel hub of Kalinganagar, the second is designed to step up evacuation of coal from mines at Angul and Talcher.

…This is why India, endowed with the world’s fifth largest bauxite deposits and the fourth largest coal reserves, has emerged as a preferred place for making aluminium. Within the country, Orissa is where every aluminium maker wants a presence. That is why the Vedanta group, in spite of being solidly anchored in Chhattisgarh, thanks to its 50 per cent ownership of Balco, with capacity of 345,000 tonnes and then giving shape to a 650,000-tonne smelter there, wants to create alumina capacity of five mt and smelting capacity of 1.6 mt in Orissa, with adequate upstream integration in bauxite mining and coal-based power.

NAY SAYERS
Unfortunately, Vedanta is not able to realise what it has set out to do in Orissa, as it fell foul of pressure groups such as Amnesty International and Survival International and also of the ministry of environment and forests. The Niyamgiri Hills, from where Vedanta’s refinery is to draw bauxite, is considered sacred by Dongria Kondh tribesmen. But why should the company be stopped to take out bauxite from there if it is ready to resettle the displaced people and practise environment-friendly mining?

As a result of the impasse, Vedanta is required to source bauxite from outside, totally upsetting the considerations for hosting a refinery at nearby Lanjigarh. The denial of mining at Niyamgiri is setting a bad precedent for the mining sector. Redemption for Vedanta would hopefully come, with the Orissa government committed to offering alternative bauxite deposits.

There are some recent news on Vedanta’s expansion in Lanjigarh. But the news are confusing. Following is an excerpt from a September 17th report in Times of India.

Vedanta has suffered another setback in its fight-back to expand the aluminium refinery in Orissa after the Union environment ministry had struck down its environment clearance for violations.

The Cuttack bench of the Orissa High Court backed the environment ministry and ordered that Vedanta would have to apply afresh for a clearance for expansion if it wants to.

Following is an excerpt from a September 19th report in ndtv.com.

The ministry of environment and forests has cleared Vedanta Aluminium’s project in Lanjigarh, Orissa. 

The expansion of Anil Agarwal-led Vedanta Aluminium’s four million tonne Lanjigarh refinery plant in Kalahandi had been put on hold by the Union Environment Ministry  on October 21, 2010.

… Environment ministry’s expert appraisal committee (EAC) has cleared the project with 70 conditions, sources told NDTV. Major conditions among them are:  Five per cent of the total project cost would be spent on social welfare projects.The company will maintain air, water quality & develop 164 hectare of plant area as green belt.

Others conditions say that the company will also submit rehabilitation and resettlement policy covering tribals, which should be in line with government policies. The company will also be required to submit corporate environment policy approved by its board.

NALCO and IDCO join hands and float an invitation for EOI for downstream aluminum park in Angul : Deadline is September 20, 2011

Aluminum ancilaries, Angul, Anugul- Talcher - Saranga- Nalconagar, Bauxite, IDCO, NALCO Comments Off on NALCO and IDCO join hands and float an invitation for EOI for downstream aluminum park in Angul : Deadline is September 20, 2011

Following is from http://www.idco.in/2009/Aluminium_Park_IEOI_Document%2026.07.11.pdf.

EOI SUBMISSION – DATE AND TIME 7.1. The Interested Parties should submit their EOIs, in the form & manner mentioned under Clause 4 hereinabove and seal it in an outer envelope and mark the envelope as “ EOI for Participating in the proposed Aluminium Park at Angul” on or before 17: 00 hours (IST) on September 20, 2011.

SITE DETAILS

1. The site of around 450 (four hundred and fifty) acres is located adjacent to the NALCO smelter plant in Banarpal Block of Angul District south of NH 42 and for the purpose of clarity it is delineated with red boundary line in the map under clause 2 herein below (the ‘Site’).

2. The Site is undulating in nature with no apparent physical encroachments and utility lines.

INFRASTRUCTURE LINKAGES

1. Approach Road: There is an access to the site from NH 42 through a single lane carriageway through Kulad village having a length of around 2.50 km. In addition, the Site is also connected by a single lane road of length 6.4 km from NH 42 running along the periphery of the NALCO smelter unit. An alternate dedicated approach road to the site from NH 42 is being planned by IDCO. In addition, the proposed Aluminium Park shall be having a connecting link road from the proposed Angul Bypass Road.

2. Rail: There exists a single track rail siding of NALCO which runs along the edge of the site till Budhapanka Railway Station with a length of about 14 km.

3. Water: Major perennial source of water for the site is river Brahmani to the north of the site on the other side of NH 42 at a distance of about 15 KM. To the extent possible, technologies and processes to be implemented by the prospective unit holders within the proposed park should aim at maximizing recirculation and reuse of water as major demand of water for envisaged processes is expected to be for cooling requirements. This would ensure in optimizing water requirements for the park on a sustainable basis.

4. Power: One of the major substations of the State is located at Meramandali (400/220/132/33 KV) which shall be approximately 7 Km from the Site. National Grid located at Chainpal near Talcher Thermal Power Station is also a likely source. Power shall be a key parameter for the Project and steps would be taken to consider sustainability.

PROJECT CONCEPT

1. Primarily, the idea is to promote aluminium based downstream and ancillary units in Orissa and to capitalize upon the inherent location based advantage for the Site. The current practice for the NALCO smelter unit is to extract aluminium having purity of about 99.97% through an electrolytic process in potlines at a temperature of around 10000c in molten form and then to utilize the same in casting standard billets, ingots, plates, wire rods, sheets etc. Aluminium in solid form as mentioned above is procured by downstream industries and utilized for different end products. Due to proximity of the Site with respect to the smelter unit, the molten metal directly may be procured by interested downstream industrial units within the proposed park and then utilized to form different end products as desired. Even considering issues like chances of oxidation, dross formation or heat loss during the transfer process for molten aluminium, advantages for prospective unit holders within the park using aluminium in molten form rather than the conventionally used solid form include:
• Savings in terms of energy costs for the downstream industrial units
• Reduction in terms of adverse environmental impact due to reduction in energy
requirement for the process and transportation needs • Better quality of the metal in terms of lesser chemical impurities
• Efficient management of inventory with minimized requirement of stock for unit holders

2. Under the Project, the Aluminium Park is being proposed to be developed as a state-ofthe- art industrial park for entrepreneurs in related business who shall set up new units within the park and utilize the molten metal as mentioned above. The existing customers of NALCO who currently buy the metal in conventionally available solid form and utilize it for various end products at locations away from the smelter unit in Angul may also relocate their plants/set up new units in the proposed Aluminium Park.

3. In addition, ancillary units may also set up units within the proposed Aluminium Park. There would be a mutually benefitting relationship between such units and NALCO.

4. The Aluminium Park would be so developed so as to fulfill comprehensively the functional requirements in terms of common facilities, physical and social infrastructure amidst a green environment. The suggested components that may come up within the the Aluminium Park include:
• Industrial Sheds / Plots
• Warehouses/Storage Facilities
• Common Facility Centers
• Material recycling and handling facilities
• Skill development centers and ITIs
• Landscaped (green) areas, Buffer Zones
• Truck Terminal and Parking facilities

5. The envisaged support infrastructure facilities for the Project to include:
• Reserved green space
• A systematic network of internal roads
• Regular supply of quality water with adequate storage facilities
• Reliable power supply to ensure maximization of production levels on a sustainable basis including renewable energy sources
• Promoting the use of solar energy to the extent possible
• Underground utility lines
• Fire fighting system for the Park
• Adequate parking space for trucks/others
• Common effluent treatment and solid waste disposal and management facilities including for hazardous and non hazardous wastes
• Sturdy storm water and Sewerage networks, Sewage Treatment Plant
• Common Rail Siding
• Banks / ATMs / STD – PCOs
• Public and Semi public facilities including Emergency Health Services, Crèche, Public Health Centers etc.
• Efficient and professional service-oriented Operations & Maintenance system
• Dedicated access controlled road corridor from NALCO smelter unit for carriage of molten aluminium

6. For the downstream industrial units, molten aluminium may be arranged to be supplied through a dedicated road corridor from the NALCO smelter unit with appropriate safety measures. Units may make payments individually to NALCO for the molten metal being used and a suitable pricing mechanism for molten metal shall be established by NALCO for the park including provisions for revision.

7. The suggested indicative products for the proposed Aluminum Park would include:

Downstream Industries of Aluminium
• Conductors
• Extrusions
• Castings
• Foil
• Others including powder

Ancillary Industries
• Raw materials like caustic soda, coal tar pitch, alum etc.
• Dross recovery unit
• Mechanical Items: Chisel Poker, LDPE sheets, Ingot skimming tool, etc
• Instrumentation Electronic Items: Alarm card, Pressure Switch, T/C sockets, photocell etc
• Refractory Items- like LCC lid cover, flue wall bricks etc.
• Miscellaneous Items- Hand gloves, casting wheel nozzle, cotton dust mask etc.

8. Products to be considered for commercial production within the proposed Park shall be decided based on mutual consent of the prospective Entrepreneurs/Manufacturers and AAPPL –the project SPV taking into account current and planned production facilities and commercial plans of the existing NALCO Smelter Unit adjacent to the proposed project site.

9 The aspect of current pollution level at the Angul Talcher Area shall be critically considered while assessing investment proposals and arriving at the final Project contours

GSI talks about its find of PGE (Platinum group elements) in Keonjhar district of Odisha

Keonjhar, Platinum Comments Off on GSI talks about its find of PGE (Platinum group elements) in Keonjhar district of Odisha

Following is an excerpt from a report in Hindu.

The Geological Survey of India (GSI) has found Platinum Group of Elements (PGE) in the Baula-Nuasahi ultramafic complex in Orissa.

“We, in collaboration with the Orissa Mining Corporation [OMC], are studying the feasibility of mining of PGE in the area. There are some encouraging signs,” said GSI Director-General A. Sundaramoorthy.

… The PGE comprises a family of six greyish to silver white metals — platinum, palladium, iridium, rhodium, osmium and ruthenium. They have attracted enormous interest from explorers all over the world due to their rarity, high economic value, growing demand in jewellery, pharmaceutical, telecommunication and hi-tech application in fuel cell technology.

“The Baula-Nuasahi ultramafic complex is the only proven PGE deposit in the country with an estimated resource of 14.2 million tonnes. This is confined to the active chromite mines,” GSI sources said.

The GSI started its collaboration with the OMC in 2010. After one year of study, scientists are elated about the prospects of development of this mineral.

Sitampundi in Tamil Nadu is another place where the GSI has got proof of PGE presence. …

Following is from a paper by GSI titled "Platinum in Baula – Nuasahi Ultramafic Complex."

Baula‐Nuasahi ultramafic complex (Lat. 210 15’ – 21020’: Long 860 18”‐860 20’) in Kendujhar district, Orissa is a NW‐SE trending , ~3 km long arcuate belt occurring ~170 km northeast of Bhubaneswar (Fig.1). It comprises of variants of ultramafic suite including orthopyroxenite, dunite, chromitite, peridotite, websterite and harzburgite hosted within gabbro and shows steep easterly dip. The mafic‐ultramafic sequence is intrusive to the supracrustals (Badampahar‐Gorumahishani Belt) of the Archaean Singhbhum craton. The supracrustals named here as Hadgarh Group comprises mainly a clastic dominated sequence with minor basic volcanics, volcaniclastics and semiplelite and occur as an arcuate belt within the granitemigmatite milieu (Singhbhum Granite).

Within the Baula ultramafic complex, the interface between the ultramafic and the mafic unit (gabbro) in its eastern border, is marked by a prominent magmatic breccia zone ranging in width between 1 m to 40m and with a strike length of >2 km. Although incidence of platinumgroup elements (PGE) in the belt was recorded by Banerjee (1966), Roy (1970) and Chakraborty (1972), PGE rich zones containing >1 ppm (Pt+Pd) was reported by the AMSE wing of the Geological Survey of India (Thiagarajan et al. 1989). Subsequently the mineralized units confined to the brecciated Ganga‐Shankar chromite lode were identified (Nanda et al. 1996, Patra & Mukherjee 1996). A collaborative programme undertaken by BRGM, France and Geological Survey of India (1996‐99) confirmed the PGE potential of the Baula sector (Augé et al. 1999). Two types of mineralization, viz. magmatic and hydrothermal origin, both linked to the intrusion of a gabbro into the ultramafic complex are reported. Detailed exploration for PGE established a possible resource of 7.7 million tones Pt+Pd ore with average content of 1.5 g/t at 0.5g/t cut off.

Environment ministry clears 6 coal mining proposals in Odisha: PTI

Coal, ENVIRONMENT, Sundergarh, Thermal Comments Off on Environment ministry clears 6 coal mining proposals in Odisha: PTI

Following is an excerpt from a PTI report in Times of India.

"All the six coal-blocks are part of the IB Valley coalfield and only one (Meenakshi-A) is presently in the ‘go’ area, the other five being in ‘no go’ areas. All six blocks will now be considered by FAC ( Forest Advisory Committee) as ‘go’ areas," Environment Minister Jairam Ramesh said in a statement.

Giving green signal to clear coal-blocks linked to UMPP, NTPC and OPGC power plants, the Minister said the Power Ministry should give "special focus" on ash disposal and water availability.

Three coal-blocks (Meenakshi-A, Meenakshi-B and Meenakshi Dipside) have been allocated to the 3960MW/4000MW Ultra Mega Power Plant (UMPP).

Coal-blocks (Manoharpur and Manoharpur Dipside) have been allocated to the 1320 MW power plant of Orissa Power Generation Corporation (OPGC). One coal-block (Dulanga) has been allocated to NTPC’s 1600 MW power plant.

CSE’s strong support to set aside 26 percent of net profits from mining to be shared with local communities

APPEAL to readers, ENVIRONMENT, Keonjhar, Mine royalty and cess, MINES and MINERALS, Sundergarh 2 Comments »

Following is from the article at http://www.cseindia.org/content/cse-releases-its-report-profit-sharing-mining. This is for wider dissemination of the article. The highlights are done by us.

Bhubaneswar, June 24, 2011: Mining companies and industry in general have been opposing the government’s recent proposal to set aside 26 per cent of their net profits, to be shared with local communities. Their contention is that this provision, if passed by Parliament, would drastically dent their profitability. A recent analysis by New Delhi-based research and advocacy body, Centre for Science and Environment (CSE), proves them wrong.

The Central government has come out with a draft Mines and Minerals (Development and Regulation) bill, 2010 (MMDR bill) to replace the 1957 Act. The draft bill which has been vetted by a GoM, includes this provision of sharing benefits. The CSE analysis comes out in strong support of this proposal, and clearly establishes how timely and necessary this provision is.

The CSE analysis was released here today in a Public Meeting chaired by Santha Sheela Nair, former secretary, Union ministry of mines. The meeting was attended by Manoj Ahuja, Secretary (Mines), Odisha government, BL Bagra, Chairman and Managing Director (NALCO) and Yashbant Narayan Singh Laguri, Member of Parliament (Keonjhar).

Speaking on the occasion, Chandra Bhushan, deputy director general of CSE said: "It is now well recognised across the world – including in India — that wealth generated by the mining sector comes at a substantial development cost, along with environmental damages and economic exclusion of the marginalised. In fact, the major mining districts of India are among its poorest and most polluted."

He added: "The government’s proposal to share the benefits of mining with local people is an important step ahead in building an inclusive growth model. It is also in line with the best practices being followed in the world. The principles are not new and many mineral-rich countries have been following it for years without impacting the genuine profitability of mining companies."

Profit sharing a global practice
To break this resource curse, a number of countries across the globe have incorporated the provision of benefit sharing in their mining legislations to enable local communities to benefit from mining activities in their region.

South Africa’s Mineral and Petroleum Resources Development Act, 2002 gives communities the opportunity to obtain a ‘preferential right’ to prospect or mine a mineral on land registered under the name of the community.

In Canada, special mining regulations are in place to recognise the rights of the aboriginals. There are some treaties called land claim agreements (LCA) which establish defined area of land for aboriginals and cover issues of mineral rights. These agreements also give specific rights to aboriginals. For example, the Nunavut LCA grants Inuits the title to about 3.5 million ha of land and mineral rights to approximately 0.35 million ha. It also gives rights to Inuits in controlling how mining will proceed on lands owned by them. Usually in such circumstances, mineral leases are given to third party to develop those resources in exchange of signing an Impact Benefit Agreement (IBA). Even if both surface and subsurface right belongs to the government then also some rights like consultation are provided to aboriginals.

Papua New Guinea, for instance, has incorporated provisions under which the mine lease holder is to provide compensation to the landholders on whose land mining is to take place, under its Mining Act 1992. The compensation is dependent on the negotiating skills of the community/landholders. For instance, the Ok Tedi copper mines have a special institutional structure to manage and implement the 52 per cent dividends received from the mine operations. This is a legally binding obligation that the company must follow as per the legislation passed in November 2001.

In Australia, the aboriginals have been given special rights in case mining happens on their land. These rights are to be realised by mining agreements. Different parts of Australia, has varying laws regarding aboriginals and mining. For example, the Aboriginal Land Rights Northern Territory Act, 1976 establishes a financial regime whereby affected aboriginal people receive a share of the mining royalties earned from activity on aboriginal land. Australian government guarantee all mining royalty for aboriginal interests except 30 per cent which is reserved for the owners of the affected area.
 
Companies will lose profits? Hogwash
The CSE analysis clearly shows that the Indian mining sector enjoys huge profits. An analysis of the annual reports of three major non-coal mining companies (Manganese Ores India Ltd, Sesa Goa and National Mineral Development Corporation or NMDC) indicates that in 2009-10, their average profit after tax (PAT) was about 50 per cent of their turnovers. In the case of Coal India Limited, this was about 18 per cent.

Assuming the draft MMDR Act, 2010 becomes a law, the CSE analysis of companies shows that it will not make any material difference to the profitability of the company. After sharing 26 per cent of the net profit with the affected community, the PAT of National Mineral Development Corporation – for instance — will still be 41 per cent of its turnover (from 55 per cent). In the case of Coal India Limited, PAT will become 14 per cent of its turnover from 18 percent.

Rich lands, poor people
Almost all the country’s minerals are located in regions that also hold most of its forests, rivers and tribal populations. Mining and quarrying has destroyed large tracts of forest land in these areas, affecting the ecosystem and the livelihoods of the already impoverished tribals.

The top 50 mining districts of India, that account for more than 85 per cent of the value of minerals produced in the country (Rs. 85,00 crore), have close to 50 per cent of the total mine lease area in the country. These districts also have, on average more poverty, more forest cover and larger tribal population than rest of the country. According to CSE analysis, at least 2.5 million people are directly affected by mining in these districts which include those who have lost their land and livelihoods.

If the MMDR provision would have been implemented in the current year (2010-11), then the affected population of these districts could have got more than Rs 9,000 crore as share of profit from mining companies. The per capita figure for these districts could have been Rs. 38,000 in 2010-11 as share of profit from mining companies. 
 
The mining affected people in Odisha would have got about Rs 1,750 crore as share of profit from mining companies. This could have been used to reduce hunger, provide better health and education infrastructure and to ultimately bring people out of poverty. 

CSE examines a few cases in the state: Keonjhar currently produces more than one-fifth of India’s iron ore and contributes more than Rs 7,000 crore to value of minerals produced in the country. Worse, mining has done nothing for Keonjhar’s economic well being. Over 50 per cent of the district’s population is below poverty line (BPL). If the draft MMDR provisions would have been implemented for the present year, the affected people of the district would have money to the tune of Rs 750 crore as profit share (2010-11 figures). Every BPL household in Keonjhar would have got at least Rs 40,000 annually.   

Similarly, Sundargarh with Scheduled Tribes (ST) as about half its population, produces minerals worth Rs 2700 crore. The affected people of the district could get Rs 285 crore as share of profit from the mining companies. Every directly affected person from mining in Sundargarh could get Rs 45,000 annually. 

Says Chandra Bhushan: “This money should be used not only to reduce present impoverishment but also for future well being of the communities like investment in health and education. There is huge opposition to this bill and it may get axed. It is very important for the communities that this bill goes through.”

  • For more information on this, please contact Sugandh Juneja of CSE at sugandh@cseindia.org or call her on 9953805227

  • For additional information on CSE’s work in this area and subject,

Jindal groups plan for Odisha; seeks iron ore mines; dangles medical college

Angul, Anugul- Talcher - Saranga- Nalconagar, Coal, Coal to diesel, Dhenkanal, Iron Ore, Jajpur, Jajpur Rd- Vyasanagar- Duburi- Kalinganagar, Jindal, Medical, nursing and pharmacy colleges, Steel, Steel ancilaries Comments Off on Jindal groups plan for Odisha; seeks iron ore mines; dangles medical college

Following is from Sambada.

The various news reports that initially came after Mr. Jindal met the CM, such as the above, did not mention anything regarding Mr. Jindal wanting iron ore linkage for his steel plants. But reports on the next day mentioned that. Following is an excerpt from a report in Financial Express.

The Jindal Steel & Power Ltd (JSPL), which is all set to commission its 2 million tonne steel plant next month, is desperately looking for iron ore linkage.

JSPL vice-president and managing director Naveen Jindal urged Orissa chief minister Naveen Patnaik for allotment of a captive iron ore mine for the plant.

Jindal met the Orissa CM on Tuesday and discussed the steel project and the captive power plant.

Sources in the government told FE that the JSPL managing director has requested the chief minister Naveen Patnaik to ensure raw material security for the plant through suitable iron ore concession.

Srikant Jena’s letter to Naveen Patnaik asking the state to take over the mines instead of leasing them; Is Jena sincere or is it just a political ploy

MINES and MINERALS, Odisha govt. action, Odisha govt. Inaction 1 Comment »

Following is the letter.

I have several questions and doubts:

  • Is it possible under the central govt. policies on mines that the state can take over the mines?
  • What about the mines for which lease have been already granted? For example, the various leases that Tata Steel has? Can the state just unilaterally terminate the leases and take over the mines. I don’t think so. See http://mines.nic.in/faq.html.

I think Mr. Jena, if he is really sincere, should elaborate on how the state can take over the mines. Otherwise, he is just playing politics.

Job creation by new Steel, Aluminum, Cement and Power Companies in Odisha

Aluminium, Anil Agarwal, Bauxite, Birlas, Business Standard, Cement, Coal, Iron Ore, MOUs, Steel, Thermal, Vedanta Comments Off on Job creation by new Steel, Aluminum, Cement and Power Companies in Odisha

Following is excerpted from a report in Business Standard.

  • Overall: employment for 39104 people in the state by the end of December 2010.
  • Steel sector: 31164 jobs which includes employment for 22399 people from the state and 8765 people from outside the state.
  • Aluminium sector: 5474 people including 3657 from the state and the remaining 1817 outside the state. Investment worth Rs 11017 crore has been grounded in this sector.
  • In the aluminium sector, Vedanta Aluminium Ltd (VAL) has been the biggest job creator, generating over 5000 jobs through its one million tonne per annum (mtpa) refinery project and 75 MW captive power plant (CPP) at Lanjigarh in Kalahandi district and aluminium smelter complex at Burkhamunda near Jharsuguda with a smelter capacity of 0.25 mtpa and a 675 MW CPP. At its refinery plant, VAL has employed 2523 people from Orissa and 1091 persons from outside the state. Similarly, 1026 people have been engaged from the state for VAL’s smelter plant while 686 others have been hired outside the state. VAL’s total investment on the refinery plant and smelter complex stands at Rs 9084 crore.
  • Aditya Aluminium Ltd has invested Rs 1875 crore on its one mtpa alumina refinery at Rayagada and a 0.26 mtpa smelter plant cum 650 MW CPP at Sambalpur. The company has created jobs for 63 people from the state and 34 others outside the state.
  • Cement sector: The total employment generated stands at 1502 by the end of December last year.
  • OCL Cement Ltd has generated employment for 1494 people and the company has invested Rs 697.46 crore out of a total project cost of Rs 850 crore for its 1.10 mtpa cement manufacturing unit at Rajgangpur. The other two investors in the cement sector- Ultratech Cement Ltd and ACC Cement Ltd have made negligible progress on their projects in the state.
  • In the power sector, the Independent Power Plants (IPPs) have generated employment for 964 people.
  • Sterlite Energy Ltd has commissioned the first unit (600 MW) of its 2400 MW IPP, four other IPPs- GMR Kamalanga Energy Ltd, Monnet Power Company Ltd, Jindal India Thermal Power Ltd and Ind-Barath Energy (Utkal) Ltd have started construction.

NTPC operations and plans for Odisha; includes a medical and engineering college

Coal, Dharitri (in Odia), Engineering and MCA Colleges, GRIDCO, Medical, nursing and pharmacy colleges, NTPC, Odisha govt. action, Thermal Comments Off on NTPC operations and plans for Odisha; includes a medical and engineering college

Following is from Dharitri.

Who will pay for the lost 10 crore/year developmental work in the Lanjigarh area

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Rayagada, Supreme Court 4 Comments »

Following is an excerpt from a report in Economic Times.

After stopping bauxite mining in Orissa the government now finds itself in a bind on the issue of rehabilitation in Lanjigarh. Corporate-backed developmental activities in the tribal region, one of the most backward places in the country, have come to a standstill following the environment ministry’s ban on mining.

The Anil Agarwal-controlled Sterlite Industries had been ordered by the Supreme Court in August 2008 to spend about 5% of its profit for development activity at Lanjigarh.

Since the environment ministry in August 2010 had barred mining, the rehabilitation package which includes about Rs 10 crore of annual development activity including the building of roads, schools and hospitals, has now been stopped.

"If disbursement from the development fund were to continue, it would imply approval of mining which would be contrary to the ministry’s order," said one person directly involved in the developmental work. On August 30, 2010, the ministry of environment and forests issued a notice barring bauxite mining in Niyamgiri on grounds of violation of environmental norms.

According to the same person quoted earlier, if the government asks Sterlite to stop developmental activity it would amount to contempt of court as it would go against the Supreme Court directive.

"Under our order we suggested rehabilitation package under which Sterlite Industries is required to deposit 5% of annual profits before tax and interest from Lanjigarh project or Rs 10 crore per annum whichever is higher," said the Supreme Court order. "The said project covers both mining and refining. The amount is required to be deposited by Sterlite Industries every year commencing from April 1, 2007. For the above reasons, we hereby grant clearance to the forest diversion proposal," read the order dated August 8, 2008.

… Among the projects which have been left uncertain include a Rs 3 crore hospital and a Rs 1.8 crore tribal school upgradation in the Lanjigarh block.

I hope the central government will consider paying this lost amount of 10 crores/year for developmental activities in that area.

 

Odisha continues to attract investors in Steel, Energy and Cement during July-September 2010

Angul, Balangir, Bargarh, Bouda, Cement, Coal, Cuttack, Dhenkanal, Ganjam, Jajpur, Jharsugurha, Keonjhar, Mayurbhanj, Paper and newsprint, Rayagada, Steel, Thermal 7 Comments »

Following is from a Business Standard report.

The state has attracted investments worth Rs51963.54 crore in the July-September quarter of 2010-11, reinforcing its image as an investor friendly destination.

… Of the 22 proposals that the state has received in the July-September period of this fiscal, seven have been in the energy sector followed by six in the steel and mines sector and three in the cement sector.

Investment proposals in the energy sector have been to the tune of Rs32024.76 crore with a cumulative capacity of 5175 Mw. Hecate Power Company Ltd has proposed to set up a 1080 Mw (4×270) thermal power plant in Bolangir district at a cost of Rs5350 crore.

Samvijaya Power and Allied Industries Ltd has proposed to set up a 1320 Mw (2×660) thermal power plant at Rampela in Jharsuguda district at an investment of Rs6828.38 crore.

Another power firm- Arissan Energy Ltd has also proposed to set up 1320 Mw (2×660) thermal power plant at the same location, entailing an investment of Rs6828.38 crore.

Similarly, Action Ispat and Power Ltd has evinced interest in setting up a 1320 Mw (2×660) thermal power plant at Puruna Pani in Boudh district at a cost of Rs8079.74 crore.

Embassy Nirman Pvt Ltd has proposed to set up a 135 Mw coal based power plant at Ghantikhal in Cuttack district at an investment of Rs618 crore.

Moser Baer Power and Infrastructures Ltd has proposed to put up a 1320 Mw (2×660) power plant in Bolangir district at a cost of Rs7400 crore.

Sonepur Energy and Oil City Pvt Ltd has lined up an investment of Rs5000 crore in setting up a gas processing plant and petrochemical complex at Sonepur in Ganjam district.

In the steel sector, ARSS Steel & Power Ltd has proposed to set up a three million tonne per annum (mtpa) steel plant at Boinda in Angul district, involving an investment of Rs10900 crore.

Similarly, Neepaz B C Dagara Steels Pvt Ltd, has planned to set up a 0.4 mtpa integrated steel plant and a 45 Mw captive power plant (CPP) at Rairangpur in Mayurbhanj district at a cost of Rs1152 crore.

International Minerals Trading Company Pvt Ltd has proposed to set up an iron ore fines beneficiation plant at Barbil in Keonjhar district at a cost of Rs150 crore.

In the cement sector, Visa Cement Ltd intends to set up a portland cement plant at Bargarh at a cost of Rs1840 crore. Jaipur Cements Pvt Ltd has proposed to set u a 0.5 mtpa cement grinding plant at Kalinganagar in Jajpur district at a cost of Rs63.50 crore.

Bhushan Infrastructure Ltd has planned an integrated township at Mangalpur in Dhenkanal district at an investment of Rs425 crore. J K Paper Ltd plans to set up a paper board plant at Jaykaypur in Rayagada district at a cost of Rs1475 crore.

Preliminary exploration for gold in Sundergarh district: Samaja

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An alternate view on Vedanta and Niyamgiri : Samaja Op-ed

Aluminium, Anil Agarwal, Bauxite, Kalahandi, Vedanta Comments Off on An alternate view on Vedanta and Niyamgiri : Samaja Op-ed

Earlier we posted the author’s article in English. This is for the benefit of Odia readers.

Status of Essar Steel projects in Odisha

Iron Ore, Jagatsinghpur, Ore pelletisation, Paradip - Jatadhari - Kujanga, Ruias/Essar group, Steel Comments Off on Status of Essar Steel projects in Odisha

Following is from a report in Orissadiary.

The 6-million tonne Essar Steel pellet plant here will be made operational by October this year. The `2,200-crore project includes an 8-MT ore beneficiation plant at Joda and Barbil and a 250-km slurry pipeline from Joda to Paradip. The company plans to expand the beneficiation and pellet manufacturing capacities to 12 MT in the future.

Initially, the company will source iron ore from private mines at Joda and Barbil. However, the company expects that the State and Central Governments will grant it lease for a captive mine in the long run.

The pellets to be produced at Paradip would be exported through the Paradip Port to Essar’s steelmaking unit at Hazira in Gujarat, which is undergoing a capacity expansion to 9.6 MT from 4.6 MT by 2012, said sources.

Following is excerpts from an interview in Business Standard. The investment numbers mentioned there does not quite gel with the numbers mentioned above.

Is there a time frame for realising the long-term vision?

It arises from the commitments, as well as MoUs (memorandums of understanding) with various state govts. These are linked to raw material. It’s a chicken and egg story. You need the raw material, otherwise you are not going to invest. We have our plans in Jharkhand, Chhattisgarh. In Orissa, we are already completing the first phase. In Karnataka, we have signed the MoU and the government is looking to provide land. But we also want the mines. We don’t want to create a situation where all the investments are done and then you say the mines are not available.

The Orissa government has a clause in the MoU that the state will recommend mines once you have made commitments for 25-30 per cent.

Yes, commitments have to be made, which implies it could be orders. But a 12-million tonne plant will cost anything between $12 billion and $15 billion. Thirty per cent of that will be $4.5 bn. How can anyone expend $4.5 bn in the hope that one will get the mines? It’s easier for smaller players.

Update on Hindalco’s plan for Odisha

Aluminium, Bauxite, Birlas, Rayagada, Rayagada- Therubali 2 Comments »

Following is from a report in http://www.platts.com/RSSFeedDetailedNews/RSSFeed/HeadlineNews/Metals/7176480/.

India’s Hindalco Industries expects to start up its new alumina refinery in the state of Orissa in September 2011, with commercial sales to begin from December, company sources said Tuesday.

Construction on the 1.5 million mt/year refinery began in 2007, and is about 50% done. Based at Rayagada, it will be managed by wholly owned subsidiary Utkal Alumina International Ltd, which is also establishing two bauxite mines at Rayagada and Kalahandi that are also slated to start up next September. The refinery and mines are about 20 km apart and will be linked by a conveyor belt.

Hindalco will eventually use most of the refinery’s alumina for its own production of aluminum, but there will be surplus output for sale, initially 780,000 mt/year, then dropping to 60,000 mt/year around July 2012 when the second of the group’s two new smelters come online.

The firm has a 360,000 mt/year smelter in the state of Madhya Pradesh that is to be completed in July 2011, followed by another unit of a similar size in Orissa a year later.

In addition, plans are underway to double the alumina refining capacity in Orissa to 3 million mt/year by 2014, by which time Hindalco is expected to sell about 50% of the new output.

The alumina expansion will be complemented with further aluminum capacity increases although details have not been announced. The group is also planning to raise its bauxite output at Orissa by 4 million mt/year to 8.5 million mt/year along with the refinery expansion.

Professor Sumit Ganguly on the Vedanta decision by Ramesh

Aluminium, Anil Agarwal, Bauxite, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Vedanta 6 Comments »

Following is from http://the-diplomat.com/indian-decade/2010/08/29/orissa’s-pyrrhic-victory/.

… Some commentators in the Indian press with a strong anti-corporate orientation, meanwhile, are also gleeful that the project has come to a halt.

Ostensibly, this delight stems from having stopped a greedy multinational corporation from ruthlessly exploiting the natural resources of a remote part of the country and the traditional homelands of some of India’s adivasi (original), tribal population.

Yet despite the delight of these disparate groups with the decision, a more sober and dispassionate analysis suggests that the ultimate losers may well be the hapless tribal population who are the inhabitants of this region.

Generations of governments, despite loud promises, have done woefully little to improve their lot. The region lacks adequate roads, has few public clinics, limited educational facilities and an appalling lack of employment opportunities. Consequently, the locals remain mired in harsh and abject poverty.

The mining investment might not have been a panacea for their many woes. However, it did offer the promise of new schools, better roads, the opening of hospitals and above all the prospects of better-paid work. With the seemingly sagacious decision, none of those possibilities will materialize despite the rather facile promise from a popular Congress member of parliament, Rahul Gandhi, that he would act as the ‘sipahi’ (guard) of their interests in New Delhi.

What is being portrayed as a great victory of environmentalism is sadly little more than a crass effort to win the votes of the tribal population in a desperately underdeveloped state. The Indian state that has long failed to protect and improve the plight of the country’s tribal population needs to do far better than what transpired this week. More to the point, romantic environmentalists and their cheerleaders in the press should think about how they are becoming unwittingly complicit in the Congress’ Party’s feckless quest for votes.

His short bio from the same page:

Ganguly is the Rabindranath Tagore Chair in Indian Cultures and Civilizations and a Professor of Political Science at Indiana University, Bloomington. Ganguly is the author, co-author, editor or co-editor of twenty books on South Asia and serves on the editorial boards of Asian Affairs, Asian Survey and Current History among others.

Varied coverage on Vedanta and Jairam Ramesh’s high-handedness

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Earlier the media thought that the underdogs were the locals and tribal and the valiant NGOs fighting for them against the big monster Vedanta. So all the stories (except direct publishing of Vedanta press releases which they had to do once in while to keep getting Vedanta’s ads) were from the angle of how mining in Niyamgiri would destroy the way of life of the tribals. How Vedanta did this mistake or that mistake which was magnified and circulated by the NGOs. No body outside of the government and Vedanta dared to defend the mining aspects as they were afraid of being labeled as bought outs, being bribed, or just monsters who do not care about poor people and tribals.

But now it seems Jairam Ramesh has behaved in such a high handed and partisan manner that slowly the media is discovering the other side of the story; which they mostly ignored earlier.

Here are some of the coverages.

1. From http://ibnlive.in.com/news/volteface-vedantas-opposer-turns-soft/129818-3.html.

In a shocking volte-face, the most vocal tribal voice against the Vedanta project in Niyamgiri hills of Orissa, is now its brand ambassador – Jitu Jakesika is now trying to convince tribals on the benefits of the mining project. Twenty-two-year-old Jitu Jakesika belonging to the Dongoria tribe of Orissa had come out in fierce opposition against the Vedanta mining project in 2008, when Rahul Gandhi had first visited Langigarh. He’s now crossed the line and is espousing the Vedanta cause.

"The NGOs and the political parties used to come to us and tell us that Vedanta would blast at Niyamgiri hills to extract bauxite and thus our livelihood and culture would be destroyed. I was convinced by their theory though I was educated. Later, I realised that this mining project will not have a detrimental effect on our livelihood and culture in any way. It would rather usher in development in our area." In 2009 Jitu was sponsored by Vedanta to study business administration in Bhubaneswar. His views have changed since. Jitu’s critics allege bribery and corruption. But he is unfazed.

"Our tribal people worship at the Niyamdanga hills not at the adjoining Niyamgiri hills as is being propagated by the NGOs. So where is the question of our worship place being destroyed coming from? We tribals worship mostly in our houses," insists Jitu.

Vedanta had also sponsored a visit of the tribals to NALCO’s bauxite mining site in Koraput, gaining some supporters for the mining project in the process. Now, Jitu has intentions of visiting Delhi soon to meet Rahul Gandhi and the prime minister and convey to them that all tribals in his community are not against the Vedanta project. However, whether Jitu’s contrarian voice would be heard or not isn’t clear yet.

We earlier mentioned Jitu in our article http://www.orissalinks.com/orissagrowth/archives/3762.

2. From a rediff article by Nilmadhab Mohanty.

 

First, the manner and time-line followed in the decision-making. The Orissa state government seems to have applied for final clearance in August 2009.

The Forest Advisory Committee (FAC) has been deliberating the proposal at least since November 2009. In addition to the information submitted by the State and the central government’s own agencies, it had the benefit of the recommendations made by a three-member expert group which submitted its report in February 2010.

FAC then asks for yet another committee under the Ministry of Tribal Affairs, which is the nodal agency in the central government for tribal rights. The environment minister, however, appoints his own committee (the Saxena Committee) in the last week of June 2010.

Then the pace quickens: The environment minister writes to the law ministry on July 19 to obtain the Attorney General’s opinion if the ministry of environment and forests (MoEF) apply its mind and decide in the light of the Supreme Court’s earlier decision giving forest clearance.

 

The AG replies promptly on the following day; Saxena submits report on August 16, FAC deliberates without much loss of time and submits recommendations on August 23, and the minister announces his decision with a 20-page reasoned order on August 24, 2010!

The must be a record in governmental working! The affected party, namely the Orissa government, is hardly given any chance to given an explanation to the MoEF.

In fact, the hapless Orissa officials seem to have met the minister on August 24 when he was in a tearing hurry to announce his decision!

 

The highhandedness I refer to is that fact that Ranesh did not give much of a chance to hear the Odisha government’s response to the Saxena committee report. He seems to have already made up his mind. So much so that Rahul Gandhi’s trip to Kalahandi was already announced on August 21st, while CM Naveen Patnaik met PM Manmohan Singh and Jairam ramesh on August  23rd and Jairam Ramesh met the Odisha government officials on August 24th. 

No one will believe that Rahul Gandhi made the decision to visit Kalahandi without knowing what Ramesh’s decision would be. Ramesh’s scant regard for what Odisha has to say on the issue shows his highhandedness. His informing Rahul Gandhi about the decision before even the report was submitted by FAC on August 23 shows that the government in Delhi is not a democratic government but a fiefdom of the Gandhi’s.

There are many more disturbing questions raised by the rediff article by Nilmadhab Mohanty.

3. The article by Saubhik Chakrabarti in Indian Express raises many other questions.

4. The blog entry at http://www.hindustantimes.com/7-questions-on-Vedanta-Niyamgiri-and-economic-development/Article1-593564.aspx

5. Tavleen Singh in Indian Express: http://www.indianexpress.com/news/politics-pollutes-the-environment/673939/0

6. Indian Express Editorial: http://www.indianexpress.com/news/whose-agitation/673470/0

7. B G Verghese in Business Standard: http://business.rediff.com/slide-show/2010/sep/06/slide-show-1-was-it-right-to-stop-vedanta.htm

http://www.business-standard.com/india/news/b-g-verghese-stop-vedanta-stop-india/406911/

See also his op-ed in Expressbuzz.com.

Saubhik Chakrabarti gives a nuanced picture of Lanjigarh in Indian Express

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Following is from his article in http://www.indianexpress.com/news/orissas-unobtainium/673845/0

…Niyamgiri, or Niyamgiri hill range—more than 100 hills; 250 square km approximate area—justifies the use of a few cliches. Lush. Verdant. Breathtakingly beautiful in clear, early morning light. The abundance of flora is easily evident (fauna, of course, is not easily spotted, but there are indisputable authoritative declarations on its abundance). Dense clusters of fruit-bearing trees on the slopes can pleasingly unnerve a typical city type. Niyamgiri mangoes are going for Rs 5 a kg or even less at small local markets. Medicinal plants that grow on the hill slopes, say locals, can cure severe wounds. A long trip to the indifferent care of the public heath centre is not required. So, yes, you can think ‘unspoilt’. Many members of the local tribal population—Dongria Kondh, who live on the upper slopes of Niyamgiri and the Kutia Khond, who live near the foothills—were bussed in for Rahul Gandhi’s rally on Thursday, and many of them were clearly happy that mining in Niyamgiri is now stalled.  …

There are plot twists. Seven twists, in fact.

1. A question on local tribal custom.

2. The nuanced answer to the question, what do tribal groups want?

3. How the private investor in Niyamgiri is a bad advertisement for private investment.

4. Where’s the ruling party in Niyamgiri politics?

5. Can we assume a tribal arcadia?

6. Could Niyamgiri have become a laboratory of intelligent mining?

7. Can Orissa afford the Niyamgiri decision?

First twist: That the tribes are protected groups, under Schedule V of the Constitution, that wildlife protection rules apply to much of the area, that the ecosystem is something special are all undisputed facts. That tribal groups have always associated their deity with the hilltop is also supposed to be undisputed. But if you ask around persistently, you don’t get a clear answer. Some locals, otherwise unimpressed with Vedanta’s development efforts, say the hilltop becoming ‘sacred’ is a recent change. Many others dispute this. And this lack of local consensus on what should be widely known local tribal tradition is important because bauxite in Niyamgiri resides on the hilltop—that’s where the mining was to happen before the Central environment ministry denied Orissa Mining Corporation a clearance. This part of the story is more complicated than the usual anti-mining narrative suggests.

Second twist: What are the tribal groups opposing? They are opposing mining on the hilltop. But are they opposing the building of social and physical infrastructure in an area that’s staggeringly underdeveloped even by Indian standards? The answer’s no, and that might seem obvious. But its implications are not obvious. No one denies that successive state governments, Congress or BJD, have been worse than negligent in terms of building social/physical infrastructure. Niyamgiri is in Kalahandi, which is part of the infamous KBK (Koraput-Bolangir-Kalahandi) group of districts: extreme underdevelopment is the KBK signature. KBK districts account for 72 per cent of Orissa’s below the poverty line population. Of the 82 very backward blocks in Orissa, 53 are in KBK. KBK literacy rate is an abysmal 43.3 per cent, while Orissa’s state-wise average is 63.08 per cent. These are all figures (source: 2002 Orissa BPL Census) that tell a dreadfully grim story. And everyone in the Niyamgiri battle, whichever side they are on, agrees.

Siddharth Nayak, leader of Green Kalahandi, a local activist group that counts among its supporters Vandana Shiva, Medha Patkar and Arundhati Roy, said lack of minimum and halfway reasonable quality infrastructure is a big problem. He also said Vedanta Aluminum Ltd (VAL) hasn’t developed as much infrastructure as promised. This is a complaint made by many locals, tribal or otherwise. But if there’s no Vedanta, or no mining, no trigger effect from private investment, who will develop infrastructure, build schools, hospitals, roads? To say that the state administration should do it seems a bit of a cruel joke given decades of history. And especially because local infrastructure is linked to local economic vitality.

There’s no convenient railhead for Kalahandi, a brutal reminder of the district’s lack of minimum economic heft. Apart from agriculture in tiny holdings and forest produce, the latter, consumed and sold locally, and therefore offering no multiplier effects, Kalahandi has little to offer, except a king’s ransom in minerals. Eco-tourism on hills like Niyamgiri is the local activists’ favourite solution to act as a development trigger. But will eco-tourism concentrating on the lush hill ranges bring in the kind of investment that large-scale industrial activity can? And minus the large-scale investment, can enough jobs and enough infrastructure be created? Locals loudly complain that Vedanta doesn’t employ enough of them, that its school—DAV Vedanta School, an impressively well-appointed facility—doesn’t enroll enough tribal/non-tribal children. Vedanta officials deny this. But the fact of these complaints says something: that there was and is a strong expectation, from tribal and non-tribal locals, that big private investment can have beneficial effects. If we assume Vedanta’s corporate social responsibility hasn’t been up to the mark, then the question, from locals’ point of view, is one of more locally engaged private investors, not solely of the absolute villainy of private investors. But the villainy is what the simple narrative of Niyamgiri highlights.

The more nuanced telling of this story comes from the likes of Raju Sahu who came from Bihar to Kalahandi 10 years ago and runs four tea/food stalls on the state highway that links Lanjigarh—where Niyamgiri and the Vedanta factory are situated—to Bhawanipatna, the district HQ. Sahu says his business has more than trebled since Vedanta started operating from here about four years ago. But he complains: what will happen if operations shut down, and why isn’t the state highway in a better condition; his business would be even better then. All along the road and right up to the site of Rahul Gandhi’s rally, tiny businesses run by locals talk of a quantum jump in sales and brood about it all ending. They, too, are locals, and the Niyamgiri story and the Kalahandi story can’t be delinked from what they represent: the possibility of local economy regeneration.

Third twist: Vedanta hasn’t made it easy for themselves or for the cause of private investment. This is apparent even if one sets aside questions about how Vedanta set up its bauxite refinery, how it increased the capacity and the sources of its current bauxite.

Vedanta officials offer you stacks of folders on CSR activities. But local complaints on Vedanta’s less-than-stellar efforts are universal. Lanjigarh or the wider area surrounding it doesn’t even look like a company town, as habitations surrounding big industrial projects often do. The bauxite to aluminum business gives very high returns. Those kind of margins sharpen the question of effective spending for local development.

Also, the company faces several allegations of what activists call its “reliance” on strong-arm methods. A recent case, much mentioned by activists and Congress leaders, is that of the police picking up Lado Sikaka, a Dongria Kondh, and later releasing him. Sikaka says he was brutally roughed up and was almost “kidnapped” because, as he alleges, he’s a prominent anti-mine activist. The local police say picking him up was an error. Vedanta says it doesn’t support any strong-arm methods. But perceptionally, the company seems to have lost this battle.

The state highway mentioned earlier is a good example of bad optics. Vedanta’s 16 tonne carriers, which weigh 33 tonnes when packed with aluminum oxide produced in the plant, trundle down this road every day, 30 trips a day on average. The road shows the toll of this traffic. Local administration officials admit the state highway, never top quality in the first place, is in increasing state of disrepair. They talk about charging more toll from the carriers and rebuilding the road. But, strangely, Vedanta hasn’t helped in making this road better. The company’s response to this highlights the local administration’s responsibility, while adding that it has built roads elsewhere. But this is literally the road to the project. It was entirely appropriate therefore to see, on this road, a shabbily painted Vedanta signboard, hanging askew, with a Rahul Gandhi poster pasted smack in the middle of the board. That pretty much tells you the story of Vedanta’s big PR problem in Lanjigarh.

Another aspect of the same problem is how Niyamgiri was planned to be mined. The Orissa Mining Corporation and Sterlite (Vedanta’s sister concern) formed a joint venture, the Southwest Orissa Bauxite Mining. Sterlite has 74 per cent shareholding. This JV was supposed to act for OMC in choosing and monitoring mining on the Niyamgiri hilltop. But given that the controversy on Niyamgiri mining was brewing for two years, was this arrangement—essentially Sterlite in charge of ensuring good mining practices for bauxite that’s needed by its sister concern Vedanta —the smartest? Vedanta officials say Sterlite’s experience makes it ideal for the purpose. But they don’t have a good answer to the question whether this is credible in a charged atmosphere. Knowledgeable local activists keep making this point, with some justice.

Fourth twist: The absence of enough competition in local politics. The Congress is front and square in the Niyamgiri agitation, delighted now by its ‘victory’. But where is the BJD, Orissa’s ruling party? The line between activists and the Congress is muddled enough for the local Congress MP, Bhakt Charan Das, to have been a past head of Green Kalahandi. But the BJD is so politically ineffective here that bandh calls on Wednesday and Thursday were comprehensively ignored. The BJD’s local weakness may seem surprising for a party that has won three state elections, and whose chief minister, Navin Patnaik, has made a determined effort to appear tribal-friendly. The explanation lies in the vagaries of alliance politics. When the BJD and the BJP became allies, Kalahandi was given to the BJP to build a base. The alliance broke up on the eve of the 2009 assembly elections. So, the BJD essentially had a late start in Kalahandi. That political weakness has resulted in giving the local Congress, which was always strong in Kalahandi, a headstart in political mobilisation on Niyamgiri. Had the BJD been stronger, had it been in a position to work among local tribal groups, the contest would have been more even. Local BJD officials admit this privately.

The Niyamgiri story is not just about activists and tribal groups, it’s also about the Congress getting an unusually clear political field. There are no credible local politicians to speak for the mining project. The sharp irony here is that Patnaik is also the forest minister, who has publicly led the campaign for tribal land rights, but the Niyamgiri mining proposal has been deemed dramatically violative of forest rights. There’s no local BJD counter-point to this.

Fifth twist: Tribal arcadia? Yes, Niyamgiri provides plenty of natural resources. Yes, the hill inhabitants don’t get affected by the droughts that are so common to Kalahandi. Yes, rank starvation is not a feature in Niyamgiri. But the tribal groups still operate in what is a subsistence economy, and they don’t have access to basic facilities in education or health. Tribal groups seems more aware of this than those romanticising the Niyamgiri way of life. Which is why local tribals complain about not getting jobs or education for their children. Which is also why Sitaram Raju, an 18-year-old security guard at the under-construction Vedanta co-funded mid-day meal cooking centre in Lanjigarh, has these stories about several inquiries from local tribal people on when the centre will start operating?

Our children will get eggs and good rice, local tribal people said when asked about the mid-day meal centre. There’s desperation for wanting something more than what they have in that wish. Raju, from Sambalpur in Orissa, earns Rs 4,200 a month. That’s a handsome salary in comparison to local average incomes. And Raju got the job because private security agencies have come in numbers since Vedanta started building sites. A local young tribal—he said he’s “eight class pass”—when asked whether he would like a job that pays what Raju gets, looked at his interlocutor as if the latter was an idiot. Of course, he said. But there are no jobs.

The hazards of romanticising tribal ways of life are colourfully exemplified by Kalahandi’s self-proclaimed “most important communist”. …

Sixth twist: Could Niyamgiri have become an ideal laboratory for good mining? Some Niyamgiri stats bear mention. There are around 8,500 tribal people in the 250 sq. km. hill area. That low population density makes industrial activity easier to handle in terms of fallout. The proposed mining area was four square km: a very small part of the hills. There’s seemingly irreconcilable debate about whether the bauxite-rich hilltop is green-friendly or not. The pro-mining view says trees don’t grow on bauxite-rich hilltops because the mineral doesn’t retain water. Post-mining, when the bauxite reserve is exhausted, the hilltop can, this view says, be made green-friendly. The example given is Nalco’s greening of the hilltop in the Koraput mine; Koraput is a neighbouring district. The anti-mining view says bauxite is porous and it therefore allows water to filter down and that keeps the hills lush. Establishing the real position objectively seems a lost cause in Niyamgiri. The talk is only about Vedanta’s violations and keeping mining away forever. Vedanta may well have violated legal norms, as the environment ministry says. And definitely, the Vedanta-OMC arrangement on mining Niyamgiri, as explained earlier, doesn’t pass muster in terms of a conflict of interest test. But sustained talk of huge ecological devastation, as the Saxena report for example talks about, has killed intelligent discussion on whether Niyamgiri could have been intelligently mined, under proper supervision. Also, bauxite mining, because the hilltop deposits are shallow, rarely needs blasting, the most disruptive of mining activities.

There’s something odd about the Central approach to ecological impact of the proposed Niyamgiri mining. Niyamgiri had received environmental clearance in October 2007. This okay comes after impact assessment studies under the Environment Protection Act. The Saxena report, which was submitted with a speed rare in government—formed in late June this year, the report was submitted on August 16—spends pages on ecological impact. But what does this mean? That the Centre was unaware since 2007, when the EPA clearance was given, that Niyamgiri mining would be environmentally harmful, and that the dangers were discovered only after a two-month study by the Saxena committee?

The seventh and the biggest twist: Can bauxite be mined in Kalahandhi, which has a huge reserve of the mineral? The Central environment ministry says the denial of mining rights is based on rules violation, in particular violation of forest rights under Forest Rights Act. This seems to imply that had Vedanta played by the book as per the ministry’s assessment, clearance would have come. But the Saxena report also puts emphasis on tribal groups’ livelihood traditions and on potential ecological damages. On the ground in Kalahandhi, it’s these two that are being highlighted. Local Congress leaders and activists talk of attempts at stealing away tribal land. If the Centre reckons that subsequent applications for mining hilltop bauxite can be measured only against legal benchmarks, it is probably making a mistake.

Kalahandi is a scheduled area, with heavy tribal presence. Tribal habitations are typically in the area’s hills. The hilltops have bauxite. The ‘victory’ in Niyamgiri has fired up activists and the Congress. Not all tribes who live in other bauxite-rich hills have the heavily protected legal status enjoyed by the Kondhs of Niyamgiri. But, as Nayak said, every mining application will now be met with movements about tribal rights. He reckons Niyamgiri has created a precedent that’s too strong to be ignored. This is good from the activists’ point of view, or for Orissa Congress’s political calculations, but it’s hardly good news for Kalahandi and Orissa.

This is the real big potential fallout of Niyamgiri: it can create more Niyamgiris. 

Following are some of my comments: 

  •  Earlier, we also made the point regarding how sacred the hill-top was. In India, both tribals as well as Hindus have many things that they pray. Often many people make temples to usurp government land.  So the lack of consensus regarding the hilltop being sacred and even people who are unimpressed with Vedanta suggesting that the "hilltop being sacred" is a recent change points finger at the activists being behind hyping up the sacred aspect of the hill top.
  • On Vedanta not having developed infrastructure: The various reports say that with importing bauxite from outside the company was not making profit, so based on short-term economics it did not spend enough in developing infrastructure. But that was short-sighted action from the company.
  • The author makes a nice point that the local and tribals do want jobs, schools etc.  and  were not opposed to development per se.
  • Vedanta’s trucks are directly responsible for the deterioration of those roads. They should have spent money on those roads and made them better.
  • BJD has a unique opportunity now to counter congress and shore up its base. It should immediately announce and start a state university in Kalahandi; it should take over the half-constructed medical college and make it a government medical college; and it should augment the agricultural college. Being in power in the state, it can do that. It can then go to the people and say: "See Congress is against development. But we are not going to let their anti-development stance hurt the people of Kalahandi. We will do our best to bring development to Kalhandi." (Hopefully Congress will then counter this with some kind of a central institution there.)

My final thought is why did not Saubhik Chakrabarti write such an article before. In the past the only views on Lanjigarh mining that would come out is that of the activists and the press releases by Vedanta. Both were one-sided. So the Indian media is partly responsible for the negative effects of Ramesh’s activism. If only they had given nuanced views like the above before Ramesh made the decision then Ramesh may have made a more nuanced decision.

Politics behind Lanjigarh becoming clearer?

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, ENVIRONMENT, Kalahandi, Mine related pollution, Vedanta 1 Comment »

1. MP of Kalahandi, Bhakta Das, who in recent years has been vociferous against mining by Vedanta once was desperate to have an alumina plant in Lanjigarh. Following is from a report in Hindu.

Today, he is known as a champion of tribal rights and a leader in the fight against Vedanta’s proposal to mine bauxite in Niyamgiri. But 14 years ago, Bhakta Charan Das, Congress MP from Kalahandi sang a different tune. “The Government of India and the Orissa government should take keen interest to set up at least a large alumina plant because we have got a heavy deposit of bauxite in Niyamgiri and Sijimalli of the Kalahandi district,” he had said during a November 1996 debate in the Lok Sabha on the drought situation in Orissa. “If there is an alumina plant, then a minimum of 40,000 people can sustain out of the different kinds of earnings from that.”

When asked about his statements on Thursday, Mr. Das initially insisted that he had only recommended mining in Sijimalli and not Niyamgiri. When faced with the Lok Sabha record, the MP, also the founder of the Green Kalahandi movement, admitted that he had learnt a lot since that day one-and-a-half decades ago.

“I had not visited Niyamgiri then. I did not know of the Dongria Kondh links to that place then. At that point, I did not know it was a densely forested area,” he said, speaking to The-Hindu over telephone immediately after the mass rally was held by Congress leader Rahul Gandhi in the Niyamgiri area.

“Of course, the Kalahandi district needs more industries, but it should not be development at the cost of the people, at the cost of the forests,” Mr. Das said, adding that the Vedanta project had failed to generate sufficient local jobs, or provide health and education facilities. “I will still be happy to support an industry that takes into account the views of the local people, that will ensure the future of all stakeholders, that follows all the laws…There can be other mines, but why don’t they go and find an abandoned mountain, instead of Niyamgiri?”

Note that the government of Odisha (a Congress government led by Janaki Patnaik) signed the first MOU with Vedanta for mining in Lanjigarh in 1997, exactly 13 years ago, a year after the above statement by Bhakta Das.

2. Bhakta Das as well as the Youth Congress Chief of Odisha, Pradeep Majhi (MP Nabarangpur) are not against mining for bauxite. They just don’t want it now in Lanjigarh. Following is from a report in Orissadiary.

Orissa Pradesh Youth Congress chief, Nabrangpur MP Pradeep Majhi on Thursday said Vedanta can look for alternative sites except Niyamgiri from where it can mine bauxite to feed its one- million- tonne alumina refinery at Lanjigarh in Kalahandi district.

He suggests alternative sites—Kuturmali, Bijimali and Sabarmali hills which are in the periphery of Niyamgiri and there are no habitation of tribals in this region. He said The Congress party is not against industrialization. There are many other hills where there are no tribals and that can be used by Vedanta which are only 8 kms from Niyamgiri. But it is clear that no mining would be allowed at Niyamgiri.

3. Not wanting in Lanjigarh and some other place is fine depending on how sacred that mountain is to the local adivasis. But did the activists hyped up the sacredness to stop the project? I have no idea. But the following excerpt from a report in Telegraph seems to suggest that way.

Regarding industrialisation and its effects on Niyamgiri, Jakesia said: “I realised that for bauxite excavation, only the surface level of the rock is used.

This is unlike iron ore and coal mining, where one has to go below the surface. Thus, the process is fairly smooth. You will be surprised to know that puja offered to Niyam Raja was never performed there. Now, after the spread of awareness, the puja is performed on top of the hill.”

4. In http://www.orissalinks.com/orissagrowth/archives/3944 we mentioned several disturbing questions raised by Nilmadhab Mohanty (a senior Fellow, Institute for Studies in Industrial Development, New Delhi) on how the government went about this. The following excerpt from an article in Economic Times raises additional disturbing questions.

On August 24, the Central government said that Vedanta Aluminium had not sought prior approval for expanding the refinery capacity to 6 million tonnes from 1 million tonnes. Another government decision that day, announced by the minister of state for environment and forests Jairam Ramesh, stopping plans to mine bauxite at Nyamgiri near Lanjigarh, attracted much more attention but the brake on the refinery expansion could have a longer term impact on the fortunes of Vedanta. The bauxite was to be supplied to the refinery.

The chief operating officer of the Anil Agarwal-controlled company, Mukesh Kumar, expressed his doubts on Thursday over the “intention” behind these announcements in view of an earlier notification.

The ministry of environment and forests had said on August 19 that for all projects which were increasing capacity and where terms of references—the guidelines and scope for any expansion—have been mentioned and where construction activities have been started, the terms of references may be suspended or withdrawn.

"Instances have come to the notice of this ministry where project proponents have undertaken construction activities without obtaining requisite environmental clearance…No activity relating to any project covered under this notification, including civil construction, can be undertaken at site without obtaining prior environmental clearance," the notification added.

The notification relates to environment impact assessment (EIA)— a crucial part of the project approval process under the Environment Protection Act. The EPA is the umbrella legislation that regulates the impact of all industrial and commercial activities on environment.

The Vedanta official said that no prior approval for expansion was needed according to the rules in place—the Environment Impact Assessment notification of 2006—before the changes announced on August 19.

"There is no threshold limit given in the EIA notification for such a project," Mr Kumar told ET. "Hence prior environment clearance, as per the notification for our proposed expansion, is not mandatory before undertaking any construction activities."

Mr Kumar also referred to a section in the 2006 notification which stipulates that approval to the terms of reference for any project has to be announced within 60 days from the date of submission. "If the decision is not conveyed within 60 days, then the terms of references suggested by the applicant, "shall be deemed as final terms for the EIA study."

Vedanta had submitted its proposal for expanding the capacity to the ministry of environment and forests for approval on October 3, 2007. The company didn’t get approval within 60 days, which is the mandatory period as per the notification.

Mr Ramesh did not respond to calls and text messages sent to his mobile.

We will add more things as they come out. 


Regardless of all of the above, my current view is that stopping Vedanta mining in Lanjigarh, although done in a very partisan and high handed way, was a high profile example to make the point that environment and forest rights need to be taken seriously, to send a message to the maoists that the UPA-2 government (mainly Congress) will protect tribals, and to send a message to the tribals that they can rely on the government.

While a government should treat everyone equally and follow the law and not make one-time examples, the motivation here makes some sense on the ground of greater good of the country that currently faces the maoist menace who reportedly use mining and miners in their recruiting plays.

As I finish writing this, I read an article in Indian Express, that points out many additional interesting issues.

Odisha government responds to the Saxena Committee report on Vedanta’s operations in Kalahandi

Anil Agarwal, Bauxite, ENVIRONMENT, Forestization, Key Center-State issues, Mine related pollution, Supreme Court, Vedanta 2 Comments »

I don’t have the letter that the Odisha government wrote. But the following excerpts from a report in tathya.in gives some idea.

… However responding to the report, in a letter to the Ministry of Environment & Forest (MOEF), the State Government has said that “it is shocking to note that the Saxena Committee has preferred to discuss in a derogatory manner the issues, which have been considered and adjudicated by the Supreme Court of India.” 

Upendra Nath Behera, Principal Secretary of the Department of Forest & Environment (DOEF) in his letter to the Secretary, MOEF has said that a preliminary study of the report shows that it has raised serious allegations against the State Government. 

It has cast aspersions on the intention of the State Government about implementing the Forest Rights Act (FRA), when the Government of Odisha is credited to be the second best performing state in the country in implementation of FRA. 

The report has asked the MOEF to reject the application of the State Government for diversion of forest land for the above purpose as mining in Niyamgiri will destroy wildlife habitat and it will cause hydrological disaster. 

It has also said that mining will destroy the cultural, religious and economic habitat of the Dongaria Kondhs, who reside in the forest area proposed for diversion. 

The State Government has pointed out that the issues raised by the Saxena Committee were the subject matter of different PILs filed by various activists before the Central Empowered Committee (CEC), which ultimately came up before the Supreme Court. 

In view of the technical issues raised in the applications, the Apex Court had directed MOEF to appoint expert bodies for examining various issues. 

The Wildlife Institute of India, Dehradun had conducted studies on the impact of the mining project on biodiversity and wildlife including its habitat. 

The Central Mine Planning & Design Institute (CMPDI), Ranchi conducted studies on the impact of the mining project on soil erosion, impact of ground vibration on hydrological regime including ground porosity and permeability. 

All these issues were discussed in the Forest Advisory Committee (FAC) on 30 August, 2006, when the project was placed before the Committee for scrutiny. 

Similarly the project was challenged in the Supreme Court on the grounds of violation of FRA. 

After elaborate discussion of the reports of the expert bodies, views of the State Government and MOEF covering all issues relating to ecology, wildlife, hydrology, soil erosion, tribal life and implementation of different environmental laws, the Supreme Court on 23 November, 2007 cleared the project with certain directions. 

On compliance of all the directions of the Apex court, the project was cleared by the Supreme Court on 8 August, 2008. 

The State Government has said that “it is of course, understood that the MOEF has not taken a view on the recommendation of the Committee."

The Government of Odisha in its’ letter has said that “it believe that if a judicious view is taken by the MOEF, most of the findings of the Saxena Committee will not hold water." 

Under this backdrop, the State Government has urged the MOEF to provide an opportunity to present its’ views before taking a final decision in this matter.

Jairam Ramesh, environment, Vedanta and Odisha

Alleged rogues, Anil Agarwal, Bauxite, Bhubaneswar- Cuttack- Puri, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Forestization, Kalahandi, Key Center-State issues, Koraput, Malkangiri, Mine related pollution, Nabarangpur, Puri, Vedanta 12 Comments »

People reading this blog must must have seen the news about the Saxena committee (which was empowered by Jairam Ramesh and the environment ministry) report on Vedanta’s operations in Lanjigarh, Odisha.

Although the report reads like an activist team’s report, the fact remains that the laws of the country are sacred and needs to be followed.

It is a different matter that laws are broken with impunity at all levels ranging from the laws reported to be broken by Vedanta to normal people extending their houses and gardens into government land, groups building temples as a ruse to capture government land where ever they feel like, people blocking roads, trains, doing bandhs whenever they feel like, etc. etc. In India laws are broken with impunity and are broken more often than they are adhered to. But this does not excuse what Vedanta is reported to have done. The committee report also rebukes the Odisha government for its hand in the whole affair.

However, one needs to put this report in perspective with what the environment ministry and Jairam Ramesh have found in rest of India. Following are excerpts from a report in rediff.in that gives us some added perspective.

… several industrialists are also upset about what they call Environment Minister Jairam Ramesh’s activist-like positions. "He is taking positions, which are normally associated with unreasonable activists and their organisations," says one leading industrialist whose project is stuck. …

… Data from the ministry’s website show that of the 58 projects that have come up for Coastal Regulation Zone clearance since April 2009, it gave only half a dozen of them the green signal.

Over 1,800 projects are awaiting clearances as of the first week of this month.

…"There are people who consciously instigate and organise people in coastal Andhra against projects coming up in the region," says a spokesperson of a power company,  which is promoting a project in coastal Andhra Pradesh.

"Land availability is a big issue in India. Developers can approach the ministry only after either acquiring the land or have assurances to get the land, to request for the terms of reference to carry out an Environmental Impact Assessment study. By that stage, a lot of investment and time may have gone into execution of the projects, and still you are not sure of getting the clearance," says Sanjay Sethi, executive director (infrastructure) at Kotak Investment Banking.

"It is necessary to have more transparent and clear guidelines and checklists for land available for various commercial and industrial uses, with clear maps of sensitive zones, which should be easily available to project developers," he adds.

… To be fair to the environment ministry, there are issues like misrepresentation of facts by project developers and the state, or conflicting reports on issues by expert panels.

In a recent development, the environmental clearances for at least four projects in an around Srikakulam in Andhra Pradesh were suspended by the ministry.

On July 15, the ministry cancelled the clearance given to Nagarjuna Construction Company’s 2,640 megawatt (Mw) coal-based super critical thermal power plant at Gollagandi and Baruva villages in Srikakulam.

An expert panel said most of the project land allocated by the state government might be regarded as wetland, contrary to an earlier panel report that the 750 acres of grasslands were barren and not fit for agriculture.

The same expert panel, which visited East Coast Energy’s 2,640 Mw thermal project near Kakarapalli village in Srikakulam during the same time, found the state government had ignored reports on the ecological value of low lying areas of the well recognised Naupada swamps wetland and migratory bird breeding in nearby Telineelapuram of Srikakulam.

"This amounts to suppression/distortion of facts," the panel said.

A nearby project – that of JSW’s 1.4 million tonnes per annum (MTPA) alumina refinery and a co-generation plant – is also being reviewed by the ministry.

… On June 28, the ministry directed the formation of a supervisory committee to monitor the influence of toxic effluents from JSW Energy’s 1,200 Mw thermal power plant at Jaigad in Maharashtra, following apprehensions that effluents could affect the quality of Alphonso mangoes and cashew orchards in the region.

… Ten days before that, Jindal Power Limited drew the wrath of the ministry for commencing construction of a 2,400 Mw power project at Tamnar in Chhattisgarh,  without obtaining prior environment clearance.

The ministry has directed the state government to stop work and initiate action against the Naveen Jindal-promoted company.

Some of the other high-profile projects that have been halted include the Maheshwar Hydroelectric project on the Narmada river in Madhya Pradesh on grounds that the conditions of the statutory environmental clearance were not complied with and the resettlement and rehabilitation of the project-affected families was less than satisfactory – charges denied by the state chief minister and the company.

… Also, many say the minister has involved himself in much-publicised wars of words with Civil Aviation Minister Praful Patel over the environment ministry’s reluctance to clear the Navi Mumbai international airport, citing destruction of mangroves, razing of a hill and diversion of two rivers; with Road Transport Minister Kamal Nath, who openly accused him of blocking projects;

… But, even his sharpest critics agree on one thing: Ramesh has made sure that no one can treat the environment ministry lightly any longer.

… "This is probably the first time that an environmentalist has become a minister. He is almost single-handedly bringing about a paradigm shift within the government about how to view progress and development," says Pandey.

I agree with the sentence in the red. Earlier companies and state governments were not taking the environment ministry that seriously. Ramesh’s actions will make sure that everyone take the environment ministry seriously. That is a good thing and kudos to Mr. Ramesh for that.

However, as far as Odisha is concerned Jairam Ramesh seems to have something against it. We say that for the following reasons.

  • When Odisha was trying for an IIT Jairam Ramesh insulted Odisha with his comments. See http://www.orissalinks.com/archives/286.
  • Recently, Hindustan Times (see http://www.hindustantimes.com/Environment-Ministry-puts-on-hold-Vedanta-University-in-Orissa/Article1-542363.aspx) reported the following: "The Union Environment Ministry on Tuesday put on hold the controversial Rs.150 billion Vedanta University project in Orissa following complaints of alleged irregularities by its promoter Anil Agarwal Foundation. The direction to keep the project in abeyance has come within a month of the Ministry granting conditional environmental clearance to the Foundation which is building the university." Now stopping a mine or a factory or an airport for environmental reasons may make sense, but a university?? That too, just because some one complained. No investigation! Just people complained and he stopped the project, when the project was about to construct a medical college!!
  • Jairam Ramesh and his ministry recently granted environmental permission to construct the Polavurum dam in Andhra Pradesh against the objections of the Orissa and Chhatisgrah government. See http://timesofindia.indiatimes.com/india/Environment-ministry-clears-Andhra-project/articleshow/6233874.cms . Times of India was surprised with this. It wrote: "Oddly, while the ministry had set up separate committees to investigate the settlement of rights under the Forest Rights Act in other high profile cases such as Vedanta and Posco which propose to displace far lesser people, in the Polavaram case the ministry has decided to accept the state government’s compliance report on face value.  The mega-project is expected to submerge 276 villages displacing upwards of two lakh people by some estimates. "   

In summary, while Jairam Ramesh deserves kudos for putting his foot down on environment laws and making sure everyone takes them seriously, people of Odisha need to be very careful of him as he seems to be against Odisha; he has stopped projects clearly beneficial to Odisha (namely, Vedanta University) by using his environment stick, and at the same time has allowed projects clearly harmful to Odisha  (namely, the polavurum dam) even after the Odisha government and Odisha chief minister have vehemently objected to it. This does not at all gel with the actions they took against Vedanta University. There the project was ordered to stop because some people complained. Here the project was given green signal despite the state of Odisha and its chief minister complaining and that too reportedly without any enquiry.