Vedanta Resources Plc has decided to respond to the criticism by the Norwegian government and Norway Pension Fund that the company is causing serious damage to people and environment in India.
?We are preparing the draft whereby we would be raising objection to their criticism on our company. We believe that the criticism is mainly based on reports from national and international non-governmental organizations (NGOs) and is highly misplaced and do not have even an iota of truth in it,? said CV Krishnan, head, business development, Vedanta Group. The Norwegian government had decided to withdraw all its investment in Vedanta after the Council on Ethics for the Fund, released evidences that one of the arms of the company was causing serious damage to people and the environment in India.
The Norwegian government through its Pension Fund-Global is believed to have invested roughly nine million euros in the London-based Vedanta Resources.
Norway?s Pension Fund, is Europe?s largest and the world second largest such fund with a valuation of $359 billion as of June 2007.
?We did not respond to the allegations levelled against us initially as the matter was sub-judice. But, with Vedanta Resources Plc no longer attached with the matter, we would soon be sending letters to both of them,? he added.
The council apart from commissioning its own studies by external Norwegian, British and Indian consultants, based it recommendation on surveys and investigations conducted by various Indian authorities as well as reports from national and international non-governmental organizations (NGOs).
Vedanta?s plan for owning mines in India had ran into objection from a section of tribal people and voluntary groups who said the proposed mine would destroy hills they consider sacred as well as their livelihoods.
The Supreme Court recently has barred Vedanta Resources Plc from mining bauxite at Niyamgiri in Orissa. However, it has kept the door open for the 1 million tonne alumina refinery project, by asking Vedanta?s Indian unit, Sterlite Industries to comeback with a fresh proposal that safeguards the rights of local tribal people through a new investment firm.