(Draft #1; I’ve just done my research and written up, i still have to put it all together, produce graphs and more) Article link : http://www.guardian.co.uk/business/2010/aug/24/vedanta-mine-plan-halted-indian-government
In a conference or board meeting room, business leaders should get down to the nitty-gritty interest, such as minimizing social cost instead of minimizing private costs. Often long-term environmental damage is overlooked by short-term business gains. In today's cultural society, externalization of cost is a big flaw built in the system. Negative externality is unintended but an arrant consequence. There is a wild divergence between practice and theory when it comes to managing harms caused by economic activities. Through the years, cultural change and laws have prompted big improvements serving the environment. One such activity is the Niyamgiri Bauxite Mining Project by Sterlite Industries.
Vedanta Aluminium Ltd. was supposed to extract up to 150 million tons of bauxite from the Niyamgiri Hills. The Orissa Mining Corporation was not able to initiate the project mainly due to the rejection of the final clearance by the MOEF (Ministry of Environment & Forest). This led to a major set-back to the UK based Vendanta Group. The rejection was based on quoting various violations of the forest and environmental laws. The companies report was found in violation of the Forest Conservation Act 1980, the Environmental Protection Act, 1966 and the Forest Rights Act, 2006.However , this did not stop the industry yet, the COO of Vedanta industries proposed the state government to allocate some other bauxite source close to their refinery. The Niyamgiri reserve holds 78 million tones of Bauxite. The hill alone couldn't fulfill the requirement of the Company.
NGOs and other organizations opposed the entry of the project into the Niyamgiri hills. The...