The French major’s fate hangs in fire until it completes a comprehensive study for resuming mining operations. The matter has been posted for hearing in the first week of July. Requests by governments of Bangladesh and France to seek intervention by the Manmohan Singh government proved futile. Attorney General GE Vahanvati pleaded before the special forest bench of SC that the cement venture in Bangladesh was an important initiative to generate employment in the natural disaster ravaged region as well as to fight poverty. Besides, stopping the supply of raw material guaranteed in 2001 by India would mean a fall in cement production in Bangladesh and a severe setback to the neighbouring country’s housing projects, he stated without attempting to veil the magnitude of the diplomatic embarrassment being faced by India. But the court not only rejected the AG’s contentions but also refused to accept the environmental clearance granted “hurriedly in two days” by the ministry of environment and forest (MoEF).
The bench has asked the company to conduct a comprehensive engineering and biological study. The case has become controversial as Lafarge has acknowledged that it has mortgaged tribal land in Meghalaya to international banks to secure a loan of $153m to finance its $255m manufacturing plant in Bangladesh. It said the mortgage was approved by RBI in March 2005. Lenders include the Asian Development Bank, the International Finance Corporation, the European Investment Bank, Arab Bangladesh Bank and the Bangladesh arm of Standard Chartered Bank. There are also allegations by Shella Action Committee, a registered voluntary agency claiming to represent the tribal people of the region, that not only was the land, which falls under Schedule VI of the Constitution banning its transfer to non-tribals illegally taken over in collusion with local officials, but mining was started without the mandatory MoEF clearance.
The cement plant set up in Bangladesh, adjacent to Meghalaya, doesn’t add any value...