The Business Bytes
Bhubaneswar, November 5, 2024 (TBB Bureau): The people of Brahmagiri in Odisha’s Puri district, alongside environmental activists and local community groups, are voicing escalating frustration and alarm over the proposed Mineral Sand Mining project in their region. Spearheaded by Indian Rare Earths Limited (IREL), the project has moved ahead despite widespread opposition and a pending Public Interest Litigation (PIL) in the Orissa High Court.
Protests and public campaigns have continuously highlighted potential environmental threats posed by the mining project, which aims to extract valuable beach sand minerals from ecologically sensitive areas. However, IREL has recently advanced with the evaluation of the sole financial and technical bid received from Goquest Solution Private Limited, a move that has raised eyebrows due to the ongoing legal scrutiny and the lack of mandatory environmental clearances. The tender’s legality, especially in light of its non-compliance with Sections 5 and 11(B) of the Mines and Minerals (Development and Regulation) Act, 1957, remains a contentious point, as these sections require explicit environmental approvals from the Ministry of Environment, Forest and Climate Change (MOEF&CC) prior to initiating any mining activities.
Jana Adhikar Parishad President Bijay Parida voiced strong criticism of the authorities’ indifference to environmental concerns, emphasizing that IREL’s actions appear to sidestep crucial ecological safeguards. “The severe environmental concerns shall have far-reaching consequences, and the authorities have neither paid attention nor responded to the petition filed before the Hon’ble High Court of Orissa to date,” he said. “The negligence of the authorities might cause severe environmental damage, which shall be irreparable,” added Parida. He further argued that claiming the project aligns with sustainable development is baseless if it entails violations of environmental and legal mandates.
The PIL, submitted in opposition to the project, raises grave concerns over the possible ecological impact, including risks to Chilika Lake, a world-renowned coastal lagoon and biodiversity hotspot, as well as nearby nesting sites for endangered Olive Ridley turtles. Both the lake and the turtles’ habitats are expected to suffer irreversible damage from the proposed extraction processes, posing a serious threat to the local ecology and biodiversity.
On July 6, 2024, IREL issued an e-tender for a 20-year contract, with an optional five-year extension, inviting experienced contractors to undertake the “Development & Operation of Mineral Sands Mine” in Brahmagiri. Although an earlier tender attempt in January 2024 was cancelled due to lack of participation, the recent tender’s issuance raises fresh concerns. Many argue that it was rolled out prematurely, without required environmental clearances.
The Orissa High Court took cognizance of the PIL on September 11, 2024, issuing notices and allowing time for IREL’s counsel, who was present on a caveat, to submit a counter affidavit. However, despite this order, IREL has yet to file a response in court. Meanwhile, advancing with the tender evaluation process has raised questions about whether IREL intends to circumvent the legal process and render the PIL moot, ignoring concerns over compliance with environmental and mining laws.
Local communities and environmental organisations have strongly condemned the project, citing fears over the potential degradation of Puri’s natural and economic landscape. Tourism, a critical economic pillar in the region, could suffer immensely due to the environmental impacts of sand mining, with possible repercussions for local livelihoods reliant on the area’s natural beauty and biodiversity.
Activists and local leaders are demanding increased transparency and adherence to environmental regulations, calling for the tender process to be halted until the High Court delivers its verdict. “This single-bidder situation, coupled with unresolved legal and environmental questions, presents an ethical and legal dilemma,” added Parida. “Advancing the project at this stage could amount to a preemptive bypass of judicial examination,” he said.
The situation remains tense as public protests continue, with stakeholders seeking urgent intervention from higher authorities to ensure that both environmental and legal safeguards are prioritized. With the fate of the PIL still undecided, concerned citizens and environmental groups are steadfast in their opposition, standing firm to protect the ecological sanctity of Brahmagiri.
