The panel of the Plan panel made a statement on Wednesday regarding the Indian government refusing to give the demanded environment clearance to the proposal made by Vedanta regarding the USD 1.7 billion aluminium project in Orissa, saying that the refusal will in no way harm or tarnish the image India has as an investment friendly country.

The Deputy Chairman of the Planning Commission, Mr. Montek Singh Ahluwalia said to reporters after having inaugurated the exhibition-cum-sale held by the Central Cottage Industries Corp., saying that he is not much aware about the Vedanta company, but he can vouchsafe that yesterday’s development will in no way hamper the image India has as an investment friendly destination.

It was a big blow for Vedanta Resources when the Indian government refused to give the much awaited environment clearance to the company for the USD 1.7 billion aluminium project involving bauxite mining in the state of Orissa.

This decision was taken by the government after having accepted recommendations of the Forest Advisory Committee (FAC) led by N. C. Saxena which wanted to ban the mining project in Orissa’s Niyamgiri hills because it would lead to many violations at the site.