A Supreme Court decision on the dispute between Vedanta Alumina and tribals in Kalahandi over a bauxite mining project in Orissa’s Niyamgiri Hills could set an important precedent.
In late 2007, the court ordered Vedanta to halt the project after tribals warned of the damaging environmental impact. Since then, a Vedanta associate company, Sterlite Industries India, has applied to continue work.
In its ruling, the Supreme Court had suggested Sterlite could file a new appeal if it formed a special purpose vehicle with the Orissa government and set aside 5% of its net profits from the mining activities for local tribals. The court also suggested funds be set up for wildlife protection.
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