Calling the recent criticism of Vedanta Resources' proposed mining project in Orissa as "unfair and regrettable"
"(Are) cultural beliefs standing in the way of a greater opportunity to reduce poverty?" it wondered and said that the project should not get stymied amid the cultural beliefs.
The UK-based Liberium Capital cautioned that a final decision by the government on the future of the Orissa project may well decide the fate of the other multi-billion dollar projects in the region.
"How the Indian government wishes to resolve this issue will be interesting as all earth in this region could be considered sacred by this tribe (Dongria Kohndh) and it is no coincidence that all 56 MoUs for major projects in Orissa are being objected to by the NGO community for similar reasons," it added.
International NGOs like Amnesty International, Survival International, Action Aid, have been critical of the project by NRI billionaire Anil Agarwal-led entity on human rights and moral grounds.
"Dissent to this project seems to lie solely with the hill tribe Dongria Kohndh, who have famously been celebrated by Survival International and other almost exclusively foreign NGOs.
"This is a thorny cultural issue (the Dongria Kohndh worship the earth or Dharini), so attacking the mountain is said to hurt their god," the report added.
Vedanta Resources is awaiting final clearance from the Environment Ministry to start a bauxite mining project at Niyamgiri Hills and feed the Lanjigarh refinery.
The investment bank expects "the ruling one way or another in a matter of weeks."
"Management were very open about the approval processes for the controversial bauxite mine. The proposed mine is one of the many high-quality bauxite resources in the 60 km radius of the site.
"We were impressed with Vedanta's approach to Corporate Social Responsibility in this very poor region and feel its treatment by sensationalist foreign NGOs has on balance been both unfair and regrettable,"
"... On a personal level, having seen the huge positive impact that the Lanjigarh and Jharsuguda have had on reducing poverty and increasing wealth in this region it is desperate shame if the actions of a few scupper an opportunity for the wider region," the report said.
The company runs a one-million tonne per annum (MTPA) alumina refinery in Lanjigarh and an aluminium smelter in Jharsuguda with an annual capacity of about 0.5 MTPA.
"...The unoccupied mine site (in Niyamgiri) is located 5 km over the hill from the refinery site, in steep, inhospitable terrain.
The nearest dwellings are a few kilometre away and no resettlement is required from the site for the simple reason nobody lives in the immediate proximity," the report claimed.
