Business Standard
Latha Jishnu / New Delhi July 11, 2009

Widespread pollution by the Vedanta refinery in Orissa raises serious questions
about environmental monitoring.

At first sight the images are picture perfect. There are gurgling streams, a
rushing river, a tree-dotted landscape, all of which are partially covered in
snow, the kind of destinations tour operators peddle every summer. Then you
see scruffy village children and buffaloes ploughing through the white
stretches and kicking up a lot of dust and you realise that something is amiss.
As the camera zooms in, reality comes as a shocker: This is Lanjigarh in
Orissa’s Kalahandi district where snow is as unlikely as apple blossom in
Rajasthan. The thick white crust covering the Vamsadhara River and
blanketing the surrounding villages is fly-ash — layers and layers of it, the
soft, choking dust settling into heavy deposits that have scarred the
topography and made life a living hell for people in the area.

These are shots from a documentary that has caused quite a furore in recent
weeks. Sham Public Hearing — The True Face of Vedanta is a narrative of the
environmental problems that have ensued after metals and mining behemoth
Vedanta Resources (2009 turnover: $6.6 billion) set up an alumina refinery in
Lanjigarh block of Kalahandi district three years ago. The one-million-tonne
refinery along with a 75-MW power plant comes under Vedanta Aluminium Ltd
(VAL) which describes its Lanjigarh facility as one of the world’s premier
alumina plants “in terms of its technology, human resources and high quality
infrastructure”. It also boasts that the refinery is the only zero-discharge
plant of its kind in India.

On June 1, VAL was marking a special triumph. It announced that it had
bagged the ‘prestigious’ Golden Peacock Award 2009 instituted by the UK-
based World Environment Foundation (WEF) in association with Institute of
Directors. The selection had been made by a jury of worthies headed by no
less than P N Bhagwati, a former Chief Justice of India and member of the UN
Human Rights Commission. The award, the company said, “recognises
Vedanta’s efforts in setting high standards” in its environment management.

The celebration turned out to be premature. Barely a week later, The True
Face of Vedanta, made by Bhubaneswar-based filmmaker Surya Shankar Dash,
ripped apart this image. Apart from the environmental degradation, the
documentary records the effects of pollution on the hapless villagers. Some of
its sharpest images are of the very young victims of pollution — children with
all kinds of skin diseases, from suppurating sores and boils to rash, which is 
on
the rise in the area.

No one is certain why the disease is affecting villages like Bundel, which are
on the periphery of the refinery. Local residents say the problem is of recent
origin and comes from bathing in the river or drinking its water. The probable
cause is the seepage of highly alkaline and caustic water from the waste
ponds into the Vamsadhara and its nearby streams. The Orissa State Pollution
Control Board (OSPCB) has repeatedly brought this to the notice of VAL but
despite several show-cause notices the company appears to have been
unable to check the contamination.

VAL is dismissive of such charges. Its standard response is that it has adopted
the zero discharge system in which no waste/effluent is released outside the
plant or red-mud pond or fly-ash pond. A VAL spokesman is
categorical: “There is also no contamination of any natural stream or river due
to discharge of fly-ash,” he says. As to the photographic evidence of fly-ash
covering the streams and villages around the factory, he insists “it is of the
inside disposal system of the fly-ash pond”.

Dash refutes this. “You can clearly see the shots are of the river, not of the
inside,” says the filmmaker. “You cannot go anywhere near the refinery
because the security guards will follow you and try to snatch your camera.”
Corroboration of what the film reveals can be found in official documents if
one goes looking for it. The OSPCB’s inspection reports are a damning
indictment of the way Lanjigarh refinery has handled its wastes since
inception. From November 2007, that is barely three months after the refinery
started trial operations, OSPCB inspectors have been cautioning VAL about
the seepage of contaminated water into the river. Even a January 2009
directive asks the company to set right the leakage of caustic water from its
pipelines and to stop the discharge of contaminated water into the
Vamsadhara. The reports also highlight the recurring problems that VAL has
had with the maintenance of its ash and red-mud ponds, the latter, a lethal
effluent of bauxite.

The litany of lapses/defects in the company’s pollution control systems should
have occasioned serious disquiet in official circles. But instead of penalties
there has been reward. “OSPCB has given us consent to operate up till March
2011,” claims a company spokesman because of the board’s “satisfaction on
our environmental measures”.

The bigger irony is that OSPCB has allowed VAL to expand capacity to six
million tonnes which will make it the largest refinery of its kind, globally. 
This is
a clear coup for Anil Agarwal’s London-based FTSE 100-company which has
been battling a sustained campaign in India and the UK against the Lanjigarh
complex. The problems of such aggressive expansive can be gargantuan.
Working at just 70 per cent of its current capacity, that is 700,000 tons, the
refinery produces 500 tons of fly-ash daily along with 2,500 tons of red-mud,
all of which is supposed to be released into their respective ponds. But there
is leakage and seepage into the groundwater, as OSPCB strictures show.

Villagers allege that whenever the pipelines carrying the wastes are choked
the pipes are cut and effluents released into the streams. At the Belamba
public hearing on April 25, OSPCB officials remained mute when over two dozen
villagers, many of them from the Dongria Kondh tribe, gave bitter testimony
about the effects of the red-mud pond and fly-ash pollution in the vicinity of
the refinery. Kumuti Majhi of Sindhuali village said that he was jailed for
several weeks for complaining about the pollution. The brooding anger and
despair is widespread among the villagers in Lanjigarh and not a single official
responded to the repeated charges of the health hazards posed by the
refinery.

The True Face of Vedanta has acted as a rallying point for over a 100 global
voluntary agencies and activists who have forced WEF to put the award on
hold. VAL appears unfazed. “We are expecting the award very soon,” says the
company which is preparing for its biggest challenge — the commencement of
mining operations in Niyamgiri Hills in the face of entrenched opposition from
the Dongria Kondh.

As the company gears up for confrontation with the outraged tribe which
considers the hills sacred and the source of their sustenance, the state is
providing a helping hand. Bauxite mining will be carried out by the Orissa
Mining Corporation in partnership with Vedanta’s sister concern, Sterlite
Industries India, under a Supreme Court order aimed at deflecting international
censure of Vedanta. Close to 700 hectares has been leased to the joint
venture for the mining. However, environmentalists have made a last-ditch
attempt to stall the desecration of Niyamgiri. R Sreedhar, director of the
Academy of Mountain Environics, which is a trust promoting sustainable
development solutions, has petitioned the National Environmental Appellate
Authority to quash the mining clearance in view of the many regulatory
violations by the company. The petition is scheduled to be heard on July 21
but there appears to be little hope of a reprieve for the environment.

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