The Supreme Court today gave the green signal to the controversial Sterlite and Posco projects in Orissa, but imposed certain conditions to ensure the safety of environment and the welfare of the tribal inhabitants who would be uprooted by the mining giants.
The Anil Agarwal promoted Sterlite Industries will be able to proceed with its controverisal Rs 4,000 crore aluminium project in the ecologically fragile Niyamgiri hills. The company had sought clearance for diversion of 660.749 hectare of forest land for mining purposes to feed its alumina plant.
The special forest bench headed by Chief Justice K G Balakrishnan, which allowed Sterlite to go ahead with bauxite mining, however, asked the Ministry of Environment and Forest to make sure that the project complied with the rules and regulations.
The other conditions imposed by the court in December last year will continue. According to them, 5 per cent of the profit of the company, or Rs 10 crore whichever is higher, would be ploughed back each year to keep ecological balance and for the welfare of those tribal people who would be displaced by the project. The Centrally Empowered Committee appointed by the Supreme Court and the “special purpose vehicle” set up after the December judgment would supervise the functioning of the project from the viewpoint of the environment and the rehabilitation of the project affected people.
The same bench cleared another controversial steel project promoted by Posco India, where the South Korean firm intends to invest Rs 51,000 crore. The project also includes a captive port at Paradeep.
The firm had signed an agreement with the Orissa government in 2005. The state-owned Orissa Mining Corporation (OMC) had agreed to supply uninterrupted iron ore and other minerals for its 12 mtpa project. when commissioned, it is projected to be the third largest steel plant in the world, producing annually 12 million tonnes of steel.
However, the project covers 1,650 hectares out of which 1,253 hectares are forest land. This has created unrest among the tribal people and they have been agitating for nearly three years against the mega project.
