Experts panel recommends conditional approval for first phase of HCC’s Lavasa project
Moneylife Digital Team 10 June 2011

A high-level committee is to be constituted that will examine, verify and monitor the project at various stages and the compliance of conditions

Mumbai: An Expert Appraisal Committee (EAC) set up by the environment ministry has recommended conditional approval to Lavasa Corporation, a subsidiary of Hindustan Construction Company (HCC), for the first phase of its 2,000 hectares hill town project, near Pune.

"We welcome the recommendation of the Expert Appraisal Committee. The Committee has recommended clearances for Lavasa's first phase of the 2,000 hectares hill town project with some conditions," HCC's chairman and managing director, Ajit Gulabchand, told shareholders at the company's annual general meeting today.

Subject to the pendency of some issues of Lavasa Corporation before the Bombay High Court, the Committee has recommended the proposal for environmental clearance for the first phase of 2,000 hectares with conditions, the panel has said. The report has been posted online, PTI reports.

The infrastructure major needs to allocate at least 5% of the project's total cost for community development projects and a time-bound action plan will have to be prepared and submitted to the ministry's regional office at Bhopal, it said.

"We have lost Rs2 crore a day since the work stopped and around 1,500 workers have lost their jobs. The ministry should take a decision soon, keeping the committee recommendations in mind," Mr Gulabchand said.

The panel said a high-level Verification and Monitoring Committee (VMC) shall be constituted, with the inclusion of eminent experts, representatives of MoEF and District Administration.

The committee shall examine, verify and monitor at various stages (planning, construction, operation and maintenance) of the project and the compliance of the conditions.

In December last year, the environment ministry had ordered status quo to be maintained at the site, terming it "unauthorised", and it observed that Lavasa Corporation, the site developer and a subsidiary of HCC, had violated the Environment Impact Assessment (EIA) notifications.

Lavasa Corporation challenged this order in the Bombay High Court and the matter is pending before the Court.

In February, the company had also applied for grant of environment clearance for the first phase of the project.

Before that, in January this year, the environment ministry said it was ready to consider the project on "merits", subject to fulfilment of certain conditions.

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