Niyamgiri Hills Case Study
Background
The Niyamgiri hills located in Odisha state contains rich biodiversity in the form of forests which are home to a large variety of flora and fauna including the endangered Bengal tigers and Indian elephants. This area was in fact designated as the elephant reserve by Orissa state in 2004. Two perennial rivers, the Bansadhara and Nagabali flow from this hill range, which is the critical source of drinking and irrigation water for many districts in Orissa as well as Andhra Pradesh. The forest area of Niyamgiri hills was also a home for Dongria Kondh, which was one of the most vulnerable tribes in India. The livelihood of these tribes greatly depended on the forest that provided them with everything they needed. These people worshipped …show more content…
It was estimated that around 70 million tons of bauxite could be extracted from that location that would lead to devastation of 1600 acre of the forest land. Considering the economic benefits associated with the availability of the bauxite ore under the forest area, both the state and the central Government of India gave their permission to a British corporation, Vedanta Resources for mining in the area. In October 2004, Vedanta Resources entered into joint venture with the state-owned mining company for the extraction of ore from the mines. While the responsibility of running the mine effectively lied with Vedanta, the responsibility of getting the required clearances lied with the state government. So the state government was also actively involved in the acquisition of forest area for mining …show more content…
An estimated $ 29 million was spent after roughly 45% of the construction of Vedanta Alumina Refinery within 4 months from the starting date.
Investors of Vedanta withdrew money and sold their stakes in Vedanta. For example, The Council on Ethics for the Norwegian Government Pension Fund withdrew investments worth $13 million from Vedanta in 2007. In 2008, Martin Currie, an investment group from Scotland sold off its stake in Vedanta worth 2.3 million pounds.
Vedanta claimed that during last five years of stalled operations, it lost approximately Rs 2500 crore with respect to its investment worth Rs 5000 crore in plant situated in Lanjigarh. Vedanta paid taxes worth Rs 830 crore to the central government and Odisha state government. It spent Rs 170 crore on background development activities in Lanjigarh and approximately Rs 11 crore for salaries, electricity bill, maintenance and establishment cost and contractors’ payment. Also, Vedanta Aluminium had a scarcity of approximately 2.55 million tonnes per
The Niyamgiri hills located in Odisha state contains rich biodiversity in the form of forests which are home to a large variety of flora and fauna including the endangered Bengal tigers and Indian elephants. This area was in fact designated as the elephant reserve by Orissa state in 2004. Two perennial rivers, the Bansadhara and Nagabali flow from this hill range, which is the critical source of drinking and irrigation water for many districts in Orissa as well as Andhra Pradesh. The forest area of Niyamgiri hills was also a home for Dongria Kondh, which was one of the most vulnerable tribes in India. The livelihood of these tribes greatly depended on the forest that provided them with everything they needed. These people worshipped …show more content…
It was estimated that around 70 million tons of bauxite could be extracted from that location that would lead to devastation of 1600 acre of the forest land. Considering the economic benefits associated with the availability of the bauxite ore under the forest area, both the state and the central Government of India gave their permission to a British corporation, Vedanta Resources for mining in the area. In October 2004, Vedanta Resources entered into joint venture with the state-owned mining company for the extraction of ore from the mines. While the responsibility of running the mine effectively lied with Vedanta, the responsibility of getting the required clearances lied with the state government. So the state government was also actively involved in the acquisition of forest area for mining …show more content…
An estimated $ 29 million was spent after roughly 45% of the construction of Vedanta Alumina Refinery within 4 months from the starting date.
Investors of Vedanta withdrew money and sold their stakes in Vedanta. For example, The Council on Ethics for the Norwegian Government Pension Fund withdrew investments worth $13 million from Vedanta in 2007. In 2008, Martin Currie, an investment group from Scotland sold off its stake in Vedanta worth 2.3 million pounds.
Vedanta claimed that during last five years of stalled operations, it lost approximately Rs 2500 crore with respect to its investment worth Rs 5000 crore in plant situated in Lanjigarh. Vedanta paid taxes worth Rs 830 crore to the central government and Odisha state government. It spent Rs 170 crore on background development activities in Lanjigarh and approximately Rs 11 crore for salaries, electricity bill, maintenance and establishment cost and contractors’ payment. Also, Vedanta Aluminium had a scarcity of approximately 2.55 million tonnes per