Sterlite, Vedanta plunge 4% after Orissa project rejection
Shares of Vedanta Group company Sterlite Industries today plunged over 4 per cent after the government rejected environment clearance to the group's USD 1.7 billion bauxite mining project in Orissa.business Updated: Aug 24, 2010 13:42 IST
Shares of Vedanta Group company Sterlite Industries on Tuesday plunged over 4 per cent after the government rejected environment clearance to the group's USD 1.7 billion bauxite mining project in Orissa.
The scrip, which was creeping in the negative zone in morning trade, sank 4.22 per cent to hit a low of Rs 152 on the Bombay Stock Exchange (BSE), soon after the reports of rejection of environment clearance flashed.
Sterlite Industries was the worst hit stock among the 30-Sensex scrips of BSE. Sterlite is a part of NRI-billionaire Anil Agarwal-promoted Vedanta Group.
Meanwhile, Vedanta Resources, the parent entity of diversified metals and mining firms, fell sharply by 4.61 per cent to 19.43 pounds on the London Stock Exchange in early trade.
Sesa Goa, another Vedanta Group firm, was also down by 1.60 per cent at Rs 322.75 on BSE in afternoon trade.
The broader market barometer Sensex was trading 71.58 points lower at 18,337.77 points in afternoon session.
The Government on Tuesday rejected environment clearance to Vedanta's USD 1.7 billion bauxite mining project in Orissa on the basis of recommendations by a key panel of the Environment Ministry.
Giving reasons for the denial of clearance, Environment Minister Jairam Ramesh said in New Delhi today that "there has been a very serious violation of Environment Protection Act, Forest Conservation Act and the Forest Rights Act."
The decision came after the Forest Advisory Committee, which had submitted the report to Ramesh after reviewing the suggestions given by the N C Saxena panel seeking ban on the mining project in Orissa's Niyamgiri Hills in view of various violations at the site.
The Saxena report has citied many violations of the in-principle environment clearance given to Orissa Mining Corporation in 2008 including non-compliance with the provisions of the Forest Rights Act.