Vedanta: Union Ministry declines Jharsuguda aluminium smelter capacity expansion proposal for not complying with environmental norms

According to a recent report, Anil Agarwal-led Vedanta Limited’s investment proposal worth INR 1,240 crore to expand the capacity of an aluminium smelter in Jharsuguda has been rebuffed by an expert panel of the Union ministry of environment, forests and climate change (MoEF&CC).

This proposal, which originally aimed at increasing the production capacity from 16 MTPA to 18 MTPA, was earlier accepted by the Naveen Patnaik government. In June 2008, Vedanta received a nod from the then-United Progressive Alliance government for setting up the 16 MTPA smelter.

The ministry has now rejected the expansion proposal on the grounds that the smelter has been violating the terms and conditions imposed upon Vedanta in lieu of the green clearance given to it 13 years ago. In addition, the committee has recommended issuing show-cause notice to Vedanta for failing to comply with the norms.

“Proposal to be returned in its present form and the same would be considered by the EAC after the compliance to the existing EC [Environmental Clearance] conditions has been achieved by the Project Proponent,” the EAC observed in the minutes of its 42nd meeting held on August 12-13.

As per Vedanta’s proposal, the power required for the expanded smelter would be 2,960 MW, out of which additional 400 MW would be obtained from the state power grid or the adjacent coal-based power plant. All the nine units of the captive power plant are already operational. While Vedanta has no plans to expand the capacity of its captive thermal power plant, it also proposed to acquire a large area for the disposal of fly ash.

However, Vedanta has claimed that it has no plans for constructing any new fly ash pond. A spokesperson told Newsclick, “We are not seeking to build any new fly ash pond as we have more than 100% fly ash utilisation and we have clarified the same to the relevant authorities. We are focussing on improving utilisation of our fly ash in cement, infrastructure, brick-making and other sectors.”

According to the report, Vedanta will knock the Centre again with a fresh pitch to get the proposal cleared. The company apprised that it submitted its response to the EAC along with the detailed plan of action.

“Vedanta is committed to the best Environment Management Systems, including air, water and solid waste management. It has adopted the Vedanta Sustainability Framework, comprising the best environment practices as is being followed by leading natural resources companies in India and abroad,” said Vedanta’s spokesperson in response to Newsclick’s queries.