The Centre on Friday made a strong plea before the Supreme Court for lifting of ban on mining operations of French Cement giant Lafarge saying that the closure of its cement plant in Bangladesh will have severe economic and diplomatic ramifications between the countries.
Attorney general G E Vahanvati told the court that the issue with regard to limestone mining in Meghalaya has to be looked not only from the point of view of value addition but wide ranging ramifications and impact on a ?friendly country?.
It will not only affect the economic development but also dampen India?s future foreign investment in the neighbouring country, he told a special forest Bench headed by Chief Justice K G Balakrishnan.
However, the court refused to stay its February 5 mining ban order saying it can?t pass the order without hearing the parties and the law of the land has to be protected even if there are international obligations.
It also posted the matter for final hearing on Monday. Vahanvati suggested that the company can be allowed to resume mining operations at the mortgaged land on a condition that a trust should be set up to ensure that the substantial amount of money was used for benefit of locals.
Senior counsel and amicus curie Harish Salve also supported Vahanvati?s stand saying that the court can follow the Sterlite model.
The apex court had in 2008 allowed Sterlite to mine bauxite from ecologically fragile Niyamgiri hills of Orissa by paying 5% of the net profit accruing from its mining activities or Rs 10 crore, whichever was greater, towards tribal development and environmental safeguards for its Rs 4,000-crore alumina refinery in Kalahandi district. Vahanvati said the cement plant was set up due to decisions taken by the two PMs?Shiekh Muzib-Ur-Rehman and Indira Gandhi following a joint communique issued on May 16, 1974 emphasising on cooperation between the two nations.