The Hindu : National : ‘Consider AG's proposal for mining consent to Lafarge'

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Tuesday, Apr 13, 2010
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‘Consider AG's proposal for mining consent to Lafarge'

Legal Correspondent

New Delhi: The Supreme Court on Monday asked the Ministry of Environment and Forests to consider the proposals submitted by Attorney-General G. E. Vahanvati for permitting mining operations by Lafarge in Meghalaya and take a final decision on revised environmental clearance in two weeks.

As per the proposal, the French company “will deposit Rs. 55 crore towards five times the normal net present value [as recommended by the CEC] with 9 per cent interest A special purpose vehicle [SPV] will be set up in four weeks and the user agency will deposit with the SPV Rs. 90 per tonne of limestone mined from the date on which mining commenced.” The proposal includes certain other conditions to be complied with by the company.

During the resumed hearing before a Bench of Chief Justice K.G. Balakrishnan and Justices S.H. Kapadia and Aftab Alam, Mr. Vahanvati said the matter involved sensitive political and diplomatic issues in view of international agreements. “It may hurt the relationship with our neighbour, Bangladesh, which is very friendly and cooperative.”

Justice Kapadia told him: “We only want compliance with law. Tell me whether without a proper Environment Impact Assessment, you could allow mining.” When Justice Aftab Alam wanted to know whether proper environmental clearance was obtained, the Attorney-General replied, “No.”

Amicus curiae U.U. Lalit, in his response to the Attorney-General's proposals, said no mining should be allowed without the company obtaining environment clearance.

Fali Nariman, senior counsel appearing for the company, referred to the report of the Task force set up by the Ministry which said: “Mining is not having any discernible adverse effect on human health...The local population and institutions do not have any problem/grievances with Lafarge Umiam Mining Private Limited and they want mining to be allowed.”

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