Cong flays Orissa mines' sale

The Congress today said it would launch an agitation in Orissa in addition to complaining to Union Environment Minister A Raja, about the manner in which forest law guidelines were circumvented in the sale of the bauxite mines in the Niyamgiri Hills to Vedanta Alumina Ltd (VAL).

This issue is fast becoming the central point of propaganda against the Biju Janata Dal (BJD) government led by Naveen Patnaik.

The Orissa Cabinet approved the agreement between the state-run Orissa Mining Corporation (OMC) and VAL yesterday. The Congress charged the state government with "sacrificing the state's interest".

State Congress chief Jaya-dev Jena had led a delegation of party leaders to Delhi last week to protest against the sale of the mines for which an agreement was signed in October floating a joint venture.

According to the Congress, no international tenders were called for the joint venture. The party claims that the OMC had applied for permission from the central government to mine bauxite spr-ead over 720 hectares in the Niyamgiri Hills.

According to the policy guidelines of the Orissa government, 25 years' requirements of this mineral were to have been met by the Orissa government supplied to the industries based on this mineral in the state.

The bauxite need of VAL is assessed at 75 million tonnes for 25 years. But in the pact signed with VAL, the government has committed 150 million tonnes of bauxite reserves to the company.

The party says as VAL will hold 74 per cent stake in the venture, it will have the controlling stake. The OMC will be responsible for the payment of all taxes including sales tax.