In a big blow to Vedanta Aluminium Limited (VAL), the Union ministry of environment and forests (MoEF) has refused to allow the company's expansion plan of its alumina refinery and its captive power plant (CPP).
The ministry has slammed the door on the company's expansion plans as the company proceeded with the construction work on expansion of its alumina refinery at Lanjigarh (Orissa) from one million tonne per annum (mtpa) to six mtpa and that of its CPP from 75 Mw to 300 Mw without prior environmental clearance in violation of Section 19 of the Environment Protection Act of 1986.
The MoEF has, however, allowed VAL to maintain status quo and continue operations of its one mtpa refinery. The ministry has stated categorically that the company can source bauxite only from those mines which have prior environmental clearance.
“The Terms of Reference (TOR) issued to the company on March 12, 2009 for expansion of the alumina refinery from one mtpa to six mtpa and that of CPP from 75 Mw to 300 Mw is withdrawn and consequently, the public hearing conducted on April 25, 2009 stands cancelled”, said the order issued by MoEF.
VAL has been asked to maintain status quo at the project site without undertaking any further construction work in respect of its expansion project.
The ministry has further stated that the secretary (forest and environment), Orissa government shall take legal action under the provisions of Environment Protection Act, 1986 for violation of the EIA notification.
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The MoEF has directed VAL to submit an unrevocable bank guarantee for an amount of Rs 10 crore valid for a period of three years, within 15 days to the Orissa State Pollution Control Board for implementation of all environmental protection measures.
Moreover, VAL shall cover 25 per cent of the plant area by raising green belt within two years. The selection of the plant species shall be as per the agro-climate zone, preferable with the native species.
The company shall submit the detailed plan for 'Green Belt Development and Plantation' within 90 days showing the area to be covered, plant density and plant species, to the MoEF and complete the implementation of this plan within a period of two years.
VAL has been instructed to immediately install peizometers around the red mud and ash ponds to monitor the ground water level, fluctuations and quality parameters on a quarterly basis.
Moreover, the company is required to undertake continuous monitoring of ambient air quality and stack emissions for all the parameters.
In addition to this, the company shall undertake measures for energy conservation and make all possible efforts to achieve caustic consumption at 65 kg per tonne from the existing 115.2 kg per tonne, line consumption at 50 kg per tonne of alumina, fuel consumption at 90 litres per tonne and extraction efficiency above 95 per cent by December 2012.
In case of non-compliance of these directions, the ministry stated that it would be constrained to take action under various provisions of the Environment Protection Act, 1986.