Environment Ministry holds hearing on Jindal Steel project

NEW DELHI: Environment Ministry today held an hearing of Jindal Steel on a notice threatening to revoke the clearance given to the company's proposed steel and power plants in Orissa for allegedly flouting forest norms.

Though the Ministry officials and the company representatives refused to speak to media, sources close to the development said the Ministry has asked the Jindal Steel to produce "more data" before the Ministry takes a final decision.

The Ministry had issued a show-cause notice on November 22 under Section 5 of the Environment (Protection) Act, 1986, asking the firm to respond why environmental clearance for the six million tonnes per annum (mtpa) integrated steel plant and 1000 MV captive power plant at Angul should not be revoked.

The company, headed by Congress MP Naveen Jindal, which was initially supposed to file its reply to the notice by December 14, had sought a month's time from the Ministry citing administrative reasons such as shortage of staff for its inability to present its case on the scheduled date.

Refusing to extend the deadline by a month, the Environment Ministry granted it two weeks' time till December 29 to file its reply and for a hearing in the case.

The clearance to the project was accorded on the condition that no construction activity at the project site shall be initiated till the approval for the 168.232 hectares of forest land is obtained under the Forest (Conservation) Act, 1980.

However, the Ministry issued the showcause notice after the company allegedly violated the FC Act, 1980, by initiating construction activities on non-forest land prior to clearance.