In a major setback to Vedanta Aluminium Limited's plan for expansion of its refinery and captive power units in Kalahandi district, the Orissa High Court today upheld the Center’s decision of stalling the expansion bid and withdrawing the terms of reference (ToR) granted to the company.
The High Court, however, allowed the company to make a fresh bid to obtain environmental clearance from the Union Ministry of Environment and Forest (MoEF) for any further expansion of its existing units.
Rejecting the writ petition of the company and another related PILs, the Division Bench of Chief Justice V Gopala Gowda and Justice B N Mohapatra said, "The process for environmental clearance for any expansion attempt by the Company has to be started de novo. "
Justifying MoEF’s October 20, 2010 order of status quo at the plant site at Lanjigarh, the HC also viewed the ministry’s withdrawal of ToR granted to the company in 2009 as legal.
Reacting to the high court’s verdict, VAL counsel Manoj Mishra said the company would take the next course of action after studying the full text of the judgement.
The company is left with the option to either challenge the decision of the high court in the Supreme Court or to furnish a fresh proposal to obtain environmental clearance as suggested by the MoEF.