The Supreme Court on Wednesday permitted Lafarge of France to resume limestone mining in Meghalaya to feed its $255-million cement plant in Bangladesh. A special forest bench headed by Chief Justice SH Kapadia vacated its February 5, 2010, order halting mining operations.

The project, Lafarge Surma Cement (LSC), is located at Chhatak, Sunamganj, across the border. A 17-km conveyor belt transports limestone from Meghalaya to Lafarge Umiam Mining in Bangladesh. The plant depends fully on limestone from Meghalaya?s East Khasi Hills.

The permission comes as India seeks to improve ties with its neighbour, with Prime Minister Manmohan Singh slated to visit Dhaka in September. Bangladesh has been pushing India to allow resumption of mining for the plant, which holds nearly 10% share of its cement market.

The court also upheld the revised environmental clearances given to Lafarge by the ministry of environment and forests (MoEF). ?We are satisfied with diligence exercise undertaken by MoEF in the matter of forest diversion… see no reason to interfere with the decision of MoEF granting site clearance dated 18.6.1999, EIA clearance dated 9.8.2001 read with revised environmental clearance dated 19.4.2010 and Stage-I forest clearance dated 22.4.2010,? the court said.

According to the court, the word ?development? is a relative term and ?one cannot assume that the tribals are not aware of principles of conservation of forest.

?In the present case, we are satisfied that limestone mining has been going on for centuries in the area and that it is an activity which is intertwined with the culture and the unique land holding,? the court said.

While laying down guidelines be followed by the Centre, state and various authorities in environmental matters, the court asked the Centre to ?appoint a national regulator for appraising projects, enforcing environmental conditions for approvals and to impose penalties on polluters.?

Lafarge welcomed the ruling: ?This decision will not only help us put our mining quarry at Nongtrai, Meghalaya back on track but also secure the livelihood of thousands of people on both sides of the border who are directly or indirectly dependent on this project. We have always acted in good faith, respecting the law of the land and have complied with all the rules and regulations at all times. This court verdict also recognises the need for sustainable development. It is acknowledged that the operations will contribute to the growth of the local economy in remote areas. We are grateful to the government of India, government of Bangladesh, state government of Meghalaya, the local people in Meghalaya who have fully supported us in the SC,? it said.

The apex court also dismissed a petition filed by Action Committee, a villagers? association which had pointed to damage to the the area?s fragile ecosystem from mining. The committee had alleged that Lafarge obtained environmental clearances by misrepresenting to the Indian government that the land was a ?wasteland and non-forest area consisting mainly of barren land, and rocks? though it had dense forests.