In a big blow to Vedanta Resources, government on Tuesday rejected environment clearance to its USD 1.7 billion bauxite mining project in Orissa after accepting recommendations of its key panel clearing such ventures.

Govt rejects environment clearance to Vedanta bauxite project

Giving reasons for the denial of clearance, Environment Minister Jairam Ramesh told reporters that "there has been a very serious violation of Environment Protection Act, Forest Conservation Act and the Forest Rights Act. "There have been no emotions and no politics and no prejudice involved in this report. I have taken this decision in a proper legal approach," he said.

Please read: Jairam Ramesh explains the government's decision

The decision came after the Forest Advisory Committee (FAC) which had submitted the report to Ramesh after reviewing the suggestions given by the NC Saxena panel seeking ban on the mining project in Orissa's Niyamgiri Hills in view of various violations at the site.

The Saxena report has citied many violations of the in-principle environment clearance given to Orissa Mining Corporation in 2008 including non-compliance with the provisions of the Forest Rights Act. "The consent certificate of the gram sabha was fake," the panel said in its report while recommending not to approve the project because of large scale violations.

Stressing that his Ministry was not getting into any 'witch-hunt', Ramesh said the Orissa government had violated the Forest Rights Act and Vedanta Resources violated the Environment Protection Act (EPA). "We are examining what action has to be taken against the project proponents for violation of various laws including the EPA," he said.

Ramesh said he has no prejudices against the Orissa government as his Ministry has cleared an important irrigation project in the state for which the in-principle approval was accorded yesterday. "While rejecting this (Vedanta) project, I have also cleared an important irrigation project in the state in which over 1500 hectares of forest land is involved," the minister said.

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