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Behind the deadly Tuticorin affair: Centre tweaked rules to help Vedanta avoid public hearing

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8 years ago

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Behind the deadly Tuticorin affair: Centre tweaked rules to help Vedanta avoid public hearing

When local opposition to Vedanta owned Sterlite copper plant in Thoothukudi (earlier ‘Tuticorin’) exploded in an aggressive protest leading to violence and police firing which took 13 lives, Madras High Court stayed the expansion of the plant and ordered it to go for a public hearing. The company claimed it was not a legal requirement.

Some reports after this revealed that this was because the rules had been tweaked by the Centre to favour Vedanta.

While the Tamil Nadu government has been facing the ire for police action and is accused of favouring Vedanta, it is the UPA and then the Modi government which changed laws and tweaked rules for the company. The Modi government went to new lengths – we shall come back to it later here.

To begin with, said a report in The Economic Times (ET), Sterlite Industries was allowed by both the UPA and NDA governments to construct the copper smelter in Tuticorin without carrying out the mandated public hearing process.

The plant was first given the green signal by the environment ministry’s expert appraisal committee in 2008, when the United Progressive Alliance was in power, the ET report said.

In 2008, Vedanta’s Sterlite Industries Limited had sought exemption from public consultation. The 2006 Environment Impact Assessment (EIA) Rules state: “All Category ‘A’ and Category B1 projects or activities shall undertake public consultation, except… all projects or activities located within industrial estates or parks.”

Copper smelter plants fall under category A. However, Sterlite Industries sought for an exemption to this rule in 2008, stating that the smelter was located within an industrial park.

According to the report, the industrial park in question was not granted environmental clearance as the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial park was developed before the notification of the Environmental Impact Assessment rules. As the 2006 Environment Impact Assessment rules do not cover industrial parks which did not receive environmental clearance, officials quoted in the report say that this was the grey area where Sterlite brought forward its plea.

The project got the clearance in 2008, but was held up for five years as the environmental clearance process was challenged in court.

The government changed and Modi government took charge. It ‘resolved’ the issue in December 2014 when the environment ministry stated in a memorandum that an exemption of projects from public consultation “is available to the projects or activities or units located in industrial estates or parks, which were notified prior to September 14, 2006, i.e EIA notification coming into force”.

The memorandum was struck down by the National Green Tribunal (NGT) in 2016, but not before Sterlite secured a five-year extension on its environmental clearance for its expansion project.

This helped plants such as the one at Thoothukudi to be constructed without taking the people of the affected area into confidence.

This move enabling the existing rules to be passed was done through mere orders from ministry which called it a ‘clarification’. In effect, laid down notified regulations under the law were re-interpreted by a mere executive order in the name of providing a ‘clarification’ to the industry.

This allowed Vedanta and other industries who made pleas, to go ahead with their projects without holding discussions with the public, said a report in The Business Standard (BS).

This interpretation by the NDA government came an a bonanza for companies because the environment ministry under UPA government had insisted in May 2014 that projects such as Vedanta’s in Thoothukudi were required by law to first go through public consultations, the BS report said.

The NDA government reversed this position in December 2014 and in March 2015 the environment ministry extended Vedanta’s environmental clearance till December 2018. This it did even while the question of the need for public hearing by projects in different kinds of industrial parks was being contested in the courts. This allowed the company to carry out construction.

In 2016, the National Green Tribunal (NGT) ruled as illegal the December orders of the NDA government, which favoured Vedanta. Ministry officials maintained that annulling the government’s December 2014 orders would severely affect several projects, but the NGT eventually quashed the orders and on its directions, the ministry passed fresh orders expressly stating that projects in industrial parks without environmental clearances needed to hold public hearings.

But by then, Vedanta had already got an extension of the green clearance to its expansion project in Thoothukudi without having a public hearing and construction was on way, the report says. Soon, protests started.  Before the May 22 violence, protests had been on for 100 days.

It is on the basis of the 2016 ruling of the NGT that the court has ordered Vedanta to halt the project and go back to the public to hold consultations.

This brings us the the point mentioned earlier. The background to the Centre-Vedanta involves another aspect: that of political funding by corporate houses, especially foreign funding.

In March 2014, the Delhi High Court had held both the Congress and the BJP guilty of illegally receiving contributions from British mining and energy conglomerate Vedanta.

The Congress and the BJP separately challenged the ruling. After the BJP came to power, it amended a law with retrospective effect, making the alleged illegal foreign funds that the two parties received legal and nullifying the high court order.

The Representation of People’s Act, which lays down the rules for elections, bars political parties from accepting foreign funds. Modi government changed it by bringing in alterations through Finance Bill which cannot be stopped by Rajya Sabha. First, in the Finance Bill 2016, the Modi government amended the Foreign Contribution (Regulation) Act (FCRA) to make it easier for parties to accept foreign funds. In 2018, it amended it further to do away with the scope for scrutiny of political parties’ funding since 1976.

This enables the BJP to get funds from foreign companies such as Vedanta without being subjected to scrutiny or having to reveal the source or the amount.

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RBI cuts repo rate to 5.25%, paving the way for cheaper loans

The RBI has cut the repo rate to 5.25%, aiming to support growth as inflation softens. The central bank also raised GDP projections and announced liquidity-boosting measures.

Published

3 hours ago

on

December 5, 2025

By

Reserve Bank of India

The Reserve Bank of India (RBI) reduced the key repo rate by 25 basis points to 5.25% on Thursday, signalling relief for borrowers as banks are expected to offer lower EMIs on home and vehicle loans. Governor Sanjay Malhotra announced the move after the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

RBI prioritises growth as inflation eases

Malhotra said the decision was unanimous, with the central bank choosing to focus on supporting economic momentum despite concerns over a weak rupee. The repo rate was earlier cut in June from 6% to 5.5% amid easing inflation trends.

The RBI now projects Consumer Price Index (CPI) inflation at 2% for FY2025-26, significantly softer than earlier estimates. For the first quarter of FY2026-27, inflation is expected at 3.9%, lower than the previous projection. The governor noted that rising precious metal prices may contribute to the headline CPI, but overall risks to inflation remain balanced.

GDP outlook strengthened

In a strong upward revision, the central bank increased the GDP forecast for the current financial year to 7.3%, previously estimated at 6.8%. Growth for the October–December quarter has also been revised to 6.7%.

The last quarter registered a six-quarter high expansion of 8.2%, reflecting resilient demand and steady credit flow.

“The growth-inflation balance continues to offer policy space,” Malhotra said, reiterating that the RBI’s stance remains neutral.

Other key decisions

Alongside the repo rate cut, the RBI announced adjustments to key policy corridors:

  • Standing Deposit Facility (SDF): 5%
  • Marginal Standing Facility (MSF): 5.5%

To improve liquidity and strengthen monetary transmission, the RBI will conduct forex swaps and purchase ₹1 lakh crore worth of government bonds through Open Market Operations (OMO).

RBI reviews a challenging year

Reflecting on 2025, Malhotra said the year delivered strong growth and moderate inflation even as global trade and geopolitical uncertainties persisted. He added that bank credit and retail lending remained healthy, providing support to the economy.

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IndiGo flight chaos deepens as over 500 services cancelled, passengers stranded for hours

Over 500 IndiGo flights were cancelled nationwide, leaving passengers stranded without food, clarity or their luggage as airports struggled to manage the disruption.

Published

4 hours ago

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December 5, 2025

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IndiGo flight

India’s largest airline continued to face massive operational breakdowns, triggering frustration among travellers at major airports across the country. From piles of unattended suitcases to passengers waiting over 12 hours without food or clarity, the disruption stretched into its fourth consecutive day.

Long delays, no communication leave passengers anguished

Several travellers at Delhi airport described the situation as “mental torture”, as thousands of unclaimed suitcases lay scattered across the terminal. Many slept on the floor, while others expressed anger over the lack of communication from airline staff.

One flier said he had been waiting for over 12 hours without any explanation: “Every time they say one-hour or two-hour delays. We were going to a wedding but don’t even have our luggage.”

A passenger in Hyderabad recounted a similar ordeal, saying the flight was delayed indefinitely with no food, water, or updates from the airline. At the airport, some travellers blocked an Air India flight in protest over the lack of arrangements.

Goa and Chennai airports also witnessed tense moments. Videos from Goa showed fliers shouting at IndiGo staff as police attempted to calm the situation. At Chennai, CISF denied entry to IndiGo passengers due to heavy congestion.

Major metro airports impacted; cascading cancellations nationwide

Flight cancellations and delays were reported across multiple airports:

  • Over 200 flights were cancelled in Delhi
  • More than 100 each in Mumbai and Bengaluru
  • Around 90 in Hyderabad
  • Dozens more in Pune, Vishakhapatnam, Chennai and Bhopal

Pune airport stated that parking bay congestion worsened the situation, as several IndiGo aircraft remained grounded due to lack of crew. Other airlines continued operations without disruption.

Airport authorities said they had mobilised additional manpower for crowd control and passenger support.

IndiGo admits planning lapses, says more cancellations expected

The airline acknowledged a “misjudgment” in assessing crew requirements under revised night-duty norms, which it said created planning gaps. Winter weather and airport congestion further aggravated the crisis.

IndiGo informed the aviation ministry and DGCA that some regulatory changes—such as the shift in night-duty timings and a cap on night landings—have been rolled back temporarily to stabilise operations.

The airline warned that cancellations may continue for another two to three days, and from December 8, schedules will be trimmed to prevent further disruption.

In a message to employees, CEO Pieter Elbers said restoring punctuality would not be an “easy target”.

Airline issues apology amid nationwide frustration

In a late-night statement, IndiGo apologised to customers and industry partners, acknowledging the widespread inconvenience caused by the disruptions. The airline said all teams were working with authorities to bring operations back to normal.

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Delhi to install 305 mist sprayers across 9 major pollution hotspots

Chief Minister Rekha Gupta announced that 305 mist sprayers will be installed across nine pollution hotspots in Delhi, alongside expert-led planning and coordinated measures to reduce dust and biomass-related pollution.

Published

18 hours ago

on

December 4, 2025

By

Delhi-NCR air quality

The Delhi government has announced a large-scale deployment of mist sprayer technology to tackle rising air pollution, with Chief Minister Rekha Gupta confirming that 305 mist sprayers will be installed across nine pollution hotspots in the capital.

Mist sprayers to curb dust at critical locations

During an inspection at ITO, Gupta said the mist sprayers already operational at the site are performing effectively. She noted that 35 poles at ITO have been fitted with these machines, which are helping suppress dust—a major contributor to air pollution in Delhi.

According to the Chief Minister, trials conducted in certain NDMC areas have shown promising results, reinforcing confidence in the technology.

High-level committee to guide pollution-control measures

Gupta announced the formation of a high-level expert committee that will advise the government on effective measures to reduce pollution. The panel will include senior officials from various departments as well as environmental specialists, including experts from IITs. Officials stated that the committee will receive special powers to implement pollution-mitigation strategies.

Departments directed to repair roads, add greenery

The Chief Minister said departments including PWD, DSIIDC and DDA have been instructed to fix potholes, repair and carpet roads, plant foliage along dividers and islands, and take other measures to reduce pollution sources.

She urged residents to report potholes on the government portal for quicker action.

Appeal to RWAs to prevent biomass burning

To curb winter pollution, Gupta advised Resident Welfare Associations (RWAs) to distribute electric heaters to security guards to discourage biomass burning, which significantly contributes to seasonal pollution spikes.

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