Vedanta back in NGO spotlight

Enviromine

Indian-company Vedanta Resources plc found itself in the firing line once again this week, as celebrities, NGOs and tribesmen joined forces to protest outside the company’s annual general meeting in London.

Vedanta has faced intense criticism from Amnesty International, and other NGOs, for its plans to develop a bauxite mine in the Niyamgiri Hills region of India's eastern Orissa state.

The groups say they are defending the rights of the local Dongria Kondh tribe, who worship the mountain and live a subsistence lifestyle.

The cause has gained the support of celebrities including Bianca Jagger, Joanna Lumley and Michael Palin. The latter was quoted in the Independent newspaper as saying “I've been to the Nyamgiri Hills in Orissa and seen the forces of money and power that Vedanta Resources have arrayed against a people who have occupied their land for thousands of years”.

The company defended its human rights record at the AGM, referencing the range of services it has introduced in the region including schools and healthcare facilities.

Vedanta said malnutrition rates in the area have fallen from 58% in 2006 to 31% in 2008, and that it is bringing much needed development to the region.

"Kalahandi is one of the most underdeveloped districts in India, suffering from child malnutrition, high infant mortality rates and lack of schooling and healthcare," chairman Anil Agarwal said.
But the very public campaign being led by NGOs has spooked some investors, with the Church of England and Dutch fund PGGM both disinvesting from the group this year.

When PGGM dropped the mining company at the start of July it said: “Vedanta has made insufficient improvements with regard to human rights and the environment. The company is therefore burdened with growing reputation risk, which may also translate into financial risks.”