Govt. policies (good or bad ) with reference to cairn india, vedanta mining project and posco Presented by: Gaganhanda MBA 2(a )
Introduction Posco , South Korean company. Vedanta, London stock exchange listed, involved in aluminum extraction, iron ore, copper & commercial energy. Cairn india , Bill Gammell. Vedanta group CEO is Indian billionaire Anil Aggrawal. Cairn India operates in Barmer, Rajasthan.
Cont. Posco signed MOU with Orissa Govt. in June 2005 for 12 MT capacity steel plant. It is largest FDI in india. In 28th Feb. Vedanta Resources & Orissa Govt. intended on converting 660.749 ha of land into Bauxite mine in Niyamgiri. Posco 54000 cr. steel project. Vedanta $1.7 bn project.
Violation of the law Environment ministry blocked the project because it was violating Environment Act & Forest right act. Producing 6mt/year instead of 1 mt/year without getting permission. Illegally captured 26 acres of forest land. Vedanta refinery sourcing bauxite from 14 mines out of which 11 don’t have environment clearance.
State Government’s Response FRA does not apply to the land identified for Posco. No any tribal family nor any OTFD resides for last 75 years.
Central Government’s Policies Committee headed by N.C. Saxena condemned both the company and Orissa govt. On 24th Aug , the environment ministry rejected the forest clearance for mining in Niyamgiri hills. Navin Patnaik met PM, Union minister of states. Central govt. said that the MNC’s have to play with the rules. UK based Vedanta group has been blocked.
Cont… Problem of Posco is different from Vedanta. Posco could be given permission for its steel mill in 2 months.
Cairn India and Posco Vedanta wants to buy out 60% share in cairn india. Of this 40%-51% will be buy out by vedanta . 20% open offer, Sesa Goa. $9.6bl buy out. $ 6.5 bn debt from standard Charted Bank. Partner with ONGC. ONGC is against Vedanta to enter in the oil sector.
Conclusion Govt. should not allow industries to trample on citizen rights. India has been target destination due to cheap labour and huge market. It should be taken care of that ONGC pays only 30% royalty instead of 100%.