In a big blow to Vedanta Aluminium Limited (VAL), the Union ministry of environment and forests (MoEF) has refused to allow the company to expand its alumina refinery and its captive power plant (CPP).
The company had proceeded with the construction work on expansion at its alumina refinery at Lanjigarh (Orissa) from 1 million tonnes per annum (mtpa) to 6 mtpa and that of its CPP from 75 Mw to 300 Mw without prior environmental clearance, violating Section 19 of the Environment Protection Act of 1986.
The MoEF has, however, allowed VAL to maintain status quo and continue operations of its 1 mtpa refinery.
The ministry has further stated that the secretary (forest and environment), Orissa, shall take legal action under the provisions of Environment Protection Act, 1986, for violation of the EIA notification.
The MoEF has directed VAL to submit an unrevocable bank guarantee for an amount of Rs 10 crore, valid for 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 a green belt within two years and undertake continuous monitoring of ambient air quality.