Case Note & Summary
The case involved an interlocutory application by M/s. Sterlite Industries (India) Ltd. (SIIL) concerning the approval of a Rehabilitation Package and forest diversion for bauxite mining in the Niyamgiri Hills. The Supreme Court had previously suggested a Rehabilitation Package aimed at sustainable development, which included the formation of a Special Purpose Vehicle (SPV) for scheduled area development and financial contributions from SIIL for tribal development and wildlife management. In the current proceedings, SIIL, the State of Orissa, and the Orissa Mining Corporation Ltd. (OMCL) accepted the terms of the Rehabilitation Package. The Central Empowered Committee (CEC) provided a report with counter-suggestions, including the assignment of the mining lease to the SPV, which the court found problematic as it would violate existing agreements. The court emphasized the importance of balancing development with environmental protection and noted that the acceptance of the Rehabilitation Package would lead to employment opportunities for displaced persons. Ultimately, the court granted clearance for the diversion of 660.749 hectares of forest land for mining, contingent upon the Ministry of Environment and Forests' approval. The interlocutory application was disposed of accordingly.
Headnote
A) Environmental Law - Forest Diversion - Approval of Forest Diversion for Mining - Forest (Conservation) Act, 1980, Section 2 - The court granted clearance for the diversion of forest land for bauxite mining while emphasizing the need for a Rehabilitation Package to ensure sustainable development and environmental protection. The court noted the acceptance of the Rehabilitation Package by the involved parties and the necessity for contributions towards tribal development and wildlife management (Paras 9-10).
Issue of Consideration
Whether to approve the Rehabilitation Package and forest diversion proposal for bauxite mining in Niyamgiri Hills.
Final Decision
The court granted clearance for the diversion of 660.749 hectares of forest land for bauxite mining, contingent upon the Ministry of Environment and Forests' approval, while emphasizing the importance of the Rehabilitation Package for sustainable development.
Law Points
- Sustainable Development
- Rehabilitation Package
- Forest Diversion
- Companies Act
- 1956
- Environmental Protection
