UPDATE 1-India rejects Vedanta mining plan on green worries

(Adds details, quotes)

NEW DELHI, Aug 24 (BestGrowthStock) – India’s environment ministry
on Tuesday rejected a plan by India-focused mining group
Vedanta Resources Plc (VED.L: ) to mine bauxite in an eastern
state, saying it violated forest laws.

The decision pertains to one mining site in eastern Orissa
state where it runs an alumina refinery on bauxite imported
from elsewhere in India which keeps the firm’s operation costs
high.

Vedanta is among many top firms such as South Korea’s POSCO
(005490.KS: ) whose projects are delayed as a proactive
environment ministry tightens rules that often brings it in
conflict with other ministries pushing for rapid
industrialisation.

“There have been serious violations of environment
protection acts,” Environment Minister Jairam Ramesh told
reporters, while rejecting Vedanta’s mining plans that could
destroy heavily forested hills sacred to local tribal
populations.

“There is no emotion, no politics, no prejudice … I have
taken the decision in a purely legal approach. That these laws
are being violated.”

The environment ministry’s decision comes after a
government panel said last week giving permission to Vedanta
would violate green guidelines and may have a serious impact on
security, referring to a worsening Maoist insurgency that feeds
partly off the resentment of people displaced by large
industrial projects.

Vedanta is already facing regulatory hurdles in its bid for
control of Cairn India (CAIL.BO: ), a potential deal valued at
$9.6 billion that can give the group led by UK-based
billionaire Anil Agarwal a slice of India’s oil reserves.

Vedanta says no one will be displaced as the mining site is
located in an uninhabited area and the project will help lift
the poor district out of poverty.
(Reporting by Nigam Prusty; Writing by Krittivas Mukherjee;
Editing by Sugita Katyal)

UPDATE 1-India rejects Vedanta mining plan on green worries