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India: Supreme Court ruling on Orissa mining case could set precedent

Some lawyers see Sterlite decision paving way for many projects to fund rehabilitation and pollution costs

Source:  Copyright 2007, Livemint
Date:  December 25, 2007
Byline:  Malathi Nayak
Original URL: Status ONLINE


Weeks after it halted Vedanta Alumina Ltd’s mining project in Orissa, the Supreme Court will soon weigh in on the issue in what many see as a possible precedent-setting decision.

Acting on the court’s own directions, Vedanta’s associate company, Sterlite Industries India Ltd, has filed a fresh application. Meanwhile, a review petition has also been filed by Oriya tribal activist Siddarth Nayak, a party to the previous proceedings, seeking a review of the court’s order.

In issuing its previous order over Vedanta’s mining plans in Orissa’s Niyamgiri Hills, the Supreme Court bench suggested Sterlite could file a fresh proposal after forming what is called a special purpose vehicle, or SPV, with the Orissa government, which would set aside 5% of net profits from mining activities, or Rs10 crore, whichever is higher, for tribals in the area. It also suggested other funds for wildlife and tribal development.

Such a ...

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