Sterlite to pay compensation for affected people in Orissa, seeks SC nod for mining

Sterlite Industries (India) Limited, the Indian arm of London-registered Vedanta Alumina Limited...

Sterlite Industries (India) Limited, the Indian arm of London-registered Vedanta Alumina Limited, on Friday told the Supreme Court that it was willing to deposit a certain amount from its profits with Lanjigarh Scheduled Area Development Foundation, formed to ensure compensatory benefits to the people affected by its mining project in the Niyamgiri hills of Orissa.

The company told the court that it will ensure that either 5 per cent of the annual profits before tax and interest from mining project (which includes bauxite mining and alumina refinery) or Rs 100 million per year, whichever is higher, is deposited with the Foundation every year.

Agreeing to take similar steps like compensatory afforestation, as suggested by a special environment Bench of apex court earlier, the company said: “A Special Purpose Vehicle—Lanjigarh Scheduled Area Development Foundation—has been formed with Government of Orissa, Orissa Mining Corporation and Sterlite as stakeholders.”

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On November 25, a Bench headed by Chief Justice K G Balakrishnan and Justices Arijit Pasayat and S H Kapadia had declined permission to Vedanta for mining in the Niyamgiri hills for its aluminium project, but had granted liberty to its Indian arm, Sterilite Industries, to extract bauxite in collaboration with the state Government, if certain conditions are met.

However, on Friday, the company, in its affidavit, failed to specify the exact number of tribal families who will get displaced. But the company informed that out of the 119 tribal families to be displaced, 67 eligible members have been provided with “specially designed skill upgradation training” for permanent employment with the company.

Seeking nod from the court for mining, the company also agreed to make a payment of the net present value (NPV) of Rs 550 million and Rs 505.3 million towards conservation and management of wildlife around the Lanjigarh mine and Rs 122 million towards tribal development.