Jindal Steel and Power Ltd's proposed integrated steel plant at Angul in Orissa has hit a green hurdle with the Environment Ministry issuing a showcause notice threatening to revoke its clearance for flouting forest norms at the site.
In an order issued on November 22, the ministry gave 15 days time to the Congress MP Naveen Jindal-owned company to respond to as to why environmental clearance for the 6 million tonnes per annum (mtpa) integrated steel plant and 1000 MV captive power plant should not be revoked.
This is the third project belonging to a high-profile industrial group in the state that has come under the scrutiny of the environment ministry for infringing green norms, the first two being from the stable of MNC Vedanta and South Korean steel giant Posco.
While the fate of Vedanta's bauxite mining plans in Niyamgiri have been sealed with the Environment Ministry red-flagging the project, Posco's integrated steel plant at Jagatsinghpur in Orissa is in the limbo following a forest panel recommendations to withdraw its forest clearance.
In the notice issued to JSPL, the ministry pointed out that environmental nod to the project was accorded on the condition that no construction activity at the project site shall be initiated till the approval for the 168.232 hectares of forest land is obtained under the Forest (Conservation) Act, 1980.
The total land required for the project was 2160.385 hectares out of which 168.232 hectares was forest land and environment clearance for the project was given in February, 2007.
The ministry's action came in the wake of a show-cause notice issued last year by the Division Forest Officer, Angul Forest Division who had pointed out violation of the FC Act, 1980 as work had started on non-forest land prior to clearance.
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He had directed the company to stop all construction activities such as storage godown, roads, foundation for industrial activities like power plant, stockyard plant mill on the non-forest government land.
"Now, therefore, under Section 5 of the Environment (Protection) Act, 1986 you are hereby directed to showcause within a fortnight as to why the clearance should not be revoked," the ministry's order said.