India halts Vedanta Resources expansion

11 April 2012

India has decided to stop Vedanta Resources' plans to expand an alumina refinery over "serious violations" of green laws.

The environment ministry has revoked permission given to the company to study the impact of increasing the capacity of the refinery in Orissa, in the east of the country, to six million tonnes from one million tonnes. A formal order is expected later in the week.

India's Economic Times newspaper said a Vedanta representative declined to comment, saying they had not received any communication.

Citing unnamed sources, the Indian Express newspaper also said the ministry was ready to tell the company that the expansion cannot be allowed.

The ministry earlier asked Vedanta to justify why the environment clearance given to the plant should not be revoked.

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