Soon after stalling Vedanta's proposed bauxite mining project in Orissa, the Environment Ministry on Tuesday said the licence granted to mining firms supplying the mineral to its alumina refinery is under scanner.
"It appears that project proponent (Vedanta) is sourcing bauxite from a large number of mines in Jharkhand for the one million tonne alumina refinery (in Lanjigarh) that are not in possession of valid environmental clearance.
"This matter is being examined separately," Environment Minister Jairam Ramesh said soon after announcing his ministry's decision to reject green clearance to the proposed bauxite mining project of the UK-based Vedanta Resources in Niyamgiri Hills in Orissa over environmental concerns.
The move has come amid reports that Vedanta's alumina refinery project in Lanjigarh has been sourcing bauxite from illegal mines, particularly from the neighbouring Jharkhand.
His decision is based on the observation by N C Saxena panel report alleging that Vedanta Alumina Refinery at the base of the Niyamgiri Hills is currently sourcing bauxite from 14 mines, of which 11 do not have any environmental clearance and are hence illegal.
The government has already issued a show-cause notice to the firm "as to why the clearance for the one million tonne per annum alumina refinery at Lanjigarh in Orissa should not be cancelled in view of gross violation of environment norms."
The panel has said the alumina refinery has violated environment laws by increasing the capacity from one million tonnes per year to 6 million tonnes without requisite clearances.
It has also said that the refinery has illegally encroached upon 26 hectares of forest land.
