SC reserves order on Sterlite Industries’ plea

The Supreme Court today reserved its order on the plea of Sterlite Industries that it should be allowed to pursue their aluminium and refinery projects in Orissa as they have complied with the conditions set by the court some months ago.
A bench headed by Chief Justice K G Balakrishnan heard the company, the Orissa Mining Corporation (OMC) and the state government regarding the crucial issues like the role of the special purpose vehicle, setting up of a fund for the development of the scheduled area, and how the contribution of the company for this purpose should be calculated.
The order is likely to be delivered next week.
Sterlite Industries, the parent firm of the London-listed Vedanta Resources, wants clearance for mining bauxite from eco-sensitive Niyamgiri hill area for its proposed Rs 4,000-crore aluminium project.
Sterlite has sought clearance to the forest diversion proposal, submitted by OMC, for diversion of 660.749 hectare of forest land to undertake bauxite mining for its alumina plant. This has led to violent protests by displaced persons.
The company has agreed to deposit with the special purpose vehicle — Lanjigarh Scheduled Area Development Foundation — five per cent of the annual profits before tax and interest from Lanjigarh project, consisting of bauxite mining and alumina refinery, or Rs 10 crore per year, whichever is higher.
It would make a payment of the net present value of Rs 55 crore and Rs 50.3 crore towards wild life management plan for conservation and management of wildlife around the mine and Rs 12.2 crore towards tribal development.
BS Reporter / New Delhi July 25, 2008, 16:55 IST
www.business-standard.com

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