Case: T.N. Godavaraman Thirumulpad Vs. Union of India &amp; Others

from aluminium segment is Rs. 455 crores (See: website of SIIL). We do not have the list of assets of M/s. VAL. Lastly, as stated above, M/s. VAL is a joint venture partner with OMC Ltd. Nothing prevents M/s. VAL from terminating joint venture agreement. We do not have even the Accounts of M/s. VAL. In the circumstances keeping in mind the totality of the above factors, we are not inclined to clear the Project. Suggested Rehabilitation Package: 13. Liberty is, however, given to M/s. SIIL to move this Court if they are agree to comply with the following modalities as suggested by this Court. It is made clear that such an application will not be entertained if made by M/s. VAL or by Vedanta Resources. (i) State of Orissa shall float a Special Purpose Vehicle (SPV) for scheduled area development of Lanjigarh Project in which the stake-holders shall be State of Orissa, OMC Ltd. and M/s. SIIL. Such SPV shall be incorporated under the Companies Act, 1956. The Accounts of SPC will be prepared by the Statutory auditors of OMC Ltd. and they shall be audited by the Auditor General for State of Orissa every year. M/s. SIIL will deposit, every year commencing from 1.4.07, 5% of its annual profits before tax and interest from Lanjigarh Project or Rs. 10 crores whichever is higher for Scheduled Area Development with the said SPV and it shall be the duty of the said SPV to account for the expenses each year. The annual report of SPV shall be submitted to CEC every year. If CEC finds non-utilisation or mis-utilisation of funds the same shall be brought to the notice of this Court. While calculating annual profits before tax and interest M/s. SIIL shall do so on the basis of the market value of the material which is sold by OMC Ltd. M/s. SIIL or its nominee.(ii) In addition to what is stated above, M/s. SIIL shall pay NPV of Rs.55 crores and Rs.50.53 crores towards Wildlife Management Plan for Conservation and Management of Wildlife around Lanjigarh bauxite mine and Rs. 12.20 crores towards tribal development. In addition, M/s. SIIL shall also bear expenses towards compensatory afforestation.(iii) A statement shall be filed by M/s. SIIL with CEC within eight weeks from today stating number of persons who shall be observed on permanent basis in M/s. SIIL including land-losers. They shall give categories in which they would be permanently absorbed. The list would also show particulars of persons who would be employed by the contractors of M/s. SIIL and the period for which they would be employed.(iv) The state Government has the following suggestions on this issue:-1. The user agency shall undertake demarcation of the lease area on the ground using four feet high cement concrete pillars with serial number, forward and back bearings and distance from pillar to pillar.2. The user agency shall make arrangements for mutation and transfer of equivalent non-forest land identified for compensatory afforestation to the ownership of the State Forest Department.3. The State Forest Department will take up compensatory afforestation at project cost with suitable indigenous species and will declare the said area identified for compensatory afforstation as "protected forest" under the Orissa Forest Act 1972 for the purpose of management.4. The user agency shall undertake Rehabilitation of Project affected families, if any as per the Orissa Rehabilitation and Resettlement Policy 2006.5. The user agency shall undertake Phased reclamation of mined out area. All overburden should be used for back filling and reclamation of the mined out areas.6. The user agency shall undertake fencing of the safety zone area and endeavour for protection as well as regeneration of the said area. It shall deposit funds with the State Forest Deptt. for the protection and regeneration of the safety zone area.7. Adequate soil conservation measures shall be undertaken by the Lessee on the overburden dumps to prevent contamination of steam flow.8. The user agency should undertake comprehensive study on hydrogeology of the area and the impact of mining on the surrounding water quality and stream flow at regular interval and take effective measures so as to maintain the pre mining water condition as far as possible.9. The user agency should undertake a comprehensive study of the wild life available in the area in association with institutes of repute like Wild Life Institute of India, Dehradun, Forest Research Institute, Dehradun etc. and shall prepare a site specific comprehensive Wild Life Management plan for conservation and management of the wild life in the project impact are under the guidance of Chief Wild Life Warden of the State.10. The user agency shall deposit the NPV of the forest land sought for diversion for undertaking mining operations.11. The user agency shall prepare a comprehensive plan for the development of tribals in the project impact area taking into consideration their requirements for health, education, communication, recreation, livelihood and cultural lifestyle.12. As per the policy of the State Government, the user agency shall earmark 5% of the net profit accrued in the project to be spent for the development of health, education, communication, irrigation and agriculture of the said schedule area within a radius of 50 Kms.13. Controlled Blasting may be used only in exigencies wherever needed to minimize the impact of noise on wild life of the area.14. The User Agency shall undertake development of greenery by way of plantation of suitable indigenous species in all vacant areas within the project.15. Trees shall be felled from the diverted area only when it is necessary with the strict supervision of the State Deptt. at the cost of the project.16. The forest land diverted shall be non transferable. Whenever the forest land is not required, the same shall be surrendered to the State Forest Deptt. under intimation to Ministry of Environment and Forests, Government of India. If M/s. SIIL, State of Orissa and OMC Ltd. jointly agree to comply with the above Rehabilitation Package, this Court may consider granting of clearance to the Project. CONCLUSION 14.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]We do not wish to express any opinion on the correctness of the said Report. However, we cannot take the risk of handing over an important asset into the hands of the company unless we are satisfied about its credibility.As stated above, under the Agreement between OMC Ltd. and M/s. VAL,the name of the contractor is M/s.VAL. The Agreement states that M/s. VAL is the subsidiary of M/s. SIIL. However, the Financial Statements annexed to the affidavit of M/s. SIIL dated 2.11.07 shows that M/s. VAL is an associate company and not a subsidiary of M/s. SIIL (See: page 31 of the affidavit filed by M/s. SIIL). On going through the Financial Statements of M/s. SIIL, we find that the operating profits from aluminium segment is negligible for the years ending on 31.3.06 and 31.3.07 (See: page 65 of the affidavit filed by M/s. SIIL). However, under Segment Reporting (in the Audited Financial Statement) the income from aluminium segment is Rs. 455 crores (See: website of SIIL). We do not have the list of assets of M/s. VAL. Lastly, as stated above, M/s. VAL is a joint venture partner with OMC Ltd. Nothing prevents M/s. VAL from terminating joint venture agreement. We do not have even the Accounts of M/s. VAL. In the circumstances keeping in mind the totality of the above factors, we are not inclined to clear theis, however, given to M/s. SIIL to move this Court if they are agree to comply with the following modalities as suggested by this Court. It is made clear that such an application will not be entertained if made by M/s. VAL or by VedantaState of Orissa shall float a Special Purpose Vehicle (SPV) for scheduled area development of Lanjigarh Project in which theshall be State of Orissa, OMC Ltd. and M/s. SIIL. Such SPV shall be incorporated under the Companies Act, 1956. The Accounts of SPC will be prepared by the Statutory auditors of OMC Ltd. and they shall be audited by the Auditor General for State of Orissa every year. M/s. SIIL will deposit, every year commencing from 1.4.07, 5% of its annual profits before tax and interest from Lanjigarh Project or Rs. 10 crores whichever is higher for Scheduled Area Development with the said SPV and it shall be the duty of the said SPV to account for the expenses each year. The annual report of SPV shall be submitted to CEC every year. If CEC findson of funds the same shall be brought to the notice of this Court. While calculating annual profits before tax and interest M/s. SIIL shall do so on the basis of the market value of the material which is sold by OMC Ltd. M/s. SIIL or its nominee.(ii) In addition to what is stated above, M/s. SIIL shall pay NPV of Rs.55 crores and Rs.50.53 crores towards Wildlife Management Plan for Conservation and Management of Wildlife around Lanjigarh bauxite mine and Rs. 12.20 crores towards tribal development. In addition, M/s. SIIL shall also bear expenses towards compensatory afforestation.(iii) A statement shall be filed by M/s. SIIL with CEC within eight weeks from today stating number of persons who shall be observed on permanent basis in M/s. SIIL includingThey shall give categories in which they would be permanently absorbed. The list would also show particulars of persons who would be employed by the contractors of M/s. SIIL and the period for which they would be employed.(iv) The state Government has the following suggestions on thisThe user agency shall undertake demarcation of the lease area on the ground using four feet high cement concrete pillars with serial number, forward and back bearings and distance from pillar to pillar.2. The user agency shall make arrangements for mutation and transfer of equivalentland identified for compensatory afforestation to the ownership of the State Forest Department.3. The State Forest Department will take up compensatory afforestation at project cost with suitable indigenous species and will declare the said area identified for compensatory afforstation as "protected forest" under the Orissa Forest Act 1972 for the purpose of management.4. The user agency shall undertake Rehabilitation of Project affected families, if any as per the Orissa Rehabilitation and Resettlement Policy 2006.5. The user agency shall undertake Phased reclamation of mined out area. All overburden should be used for back filling and reclamation of the mined out areas.6. The user agency shall undertake fencing of the safety zone area and endeavour for protection as well as regeneration of the said area. It shall deposit funds with the State Forest Deptt. for the protection and regeneration of the safety zone area.7. Adequate soil conservation measures shall be undertaken by the Lessee on the overburden dumps to prevent contamination of steam flow.8. The user agency should undertake comprehensive study on hydrogeology of the area and the impact of mining on the surrounding water quality and stream flow at regular interval and take effective measures so as to maintain the pre mining water condition as far as possible.9. The user agency should undertake a comprehensive study of the wild life available in the area in association with institutes of repute like Wild Life Institute of India, Dehradun, Forest Research Institute, Dehradun etc. and shall prepare a site specific comprehensive Wild Life Management plan for conservation and management of the wild life in the project impact are under the guidance of Chief Wild Life Warden of the State.10. The user agency shall deposit the NPV of the forest land sought for diversion for undertaking mining operations.11. The user agency shall prepare a comprehensive plan for the development of tribals in the project impact area taking into consideration their requirements for health, education, communication, recreation, livelihood and cultural lifestyle.12. As per the policy of the State Government, the user agency shall earmark 5% of the net profit accrued in the project to be spent for the development of health, education, communication, irrigation and agriculture of the said schedule area within a radius of 50 Kms.13. Controlled Blasting may be used only in exigencies wherever needed to minimize the impact of noise on wild life of the area.14. The User Agency shall undertake development of greenery by way of plantation of suitable indigenous species in all vacant areas within the project.15. Trees shall be felled from the diverted area only when it is necessary with the strict supervision of the State Deptt. at the cost of the project.16. The forest land diverted shall be non transferable. Whenever the forest land is not required, the same shall be surrendered to the State Forest Deptt. under intimation to Ministry of Environment and Forests, Government of India. If M/s. SIIL, State of Orissa and OMC Ltd. jointly agree to comply with the above Rehabilitation Package, this Court may consider granting of clearance to the Project.