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Time Value Of Money Essay

4966 words - 20 pages

Business Report “Examining the causes of Failure”


Vedanta Alumina Lanjigarh Project

Submission date 13th December, 2010

Submitted bySId- 7636657


Executive Summary –

MOE&F, INDIA rejected the application for Stage-2 (Final) Environmental Clearance and withdrew all the previous clearances for mining in Niyamgiri Hills given to Vedanta Alumina Ltd. (VAL) a subsidiary of Sterlite Industries INDIA Ltd. (SIIL) citing various facts and reasons. This report provides an in depth analysis of the factors that lead to the debacle of Vedanta Alumina Lanjigarh Project. In the collation and presentation of data Secondary sources have been largely used. Vedanta, being a big ...view middle of the document...

Vedanta Alumina Ltd. (VAL) is an associate company of globally diversified, London Stock Exchange listed, FTSE 100 metals and mining group Vedanta Resources PLC. As per the MoU reached between Sterlite Industries (INDIA) Ltd. (SIIL) and Orissa Mining Corporation (OMC), INDIA on 7th June 2003 SIIL would set up an 1.0 MTPA Alumina Refinery Plant, 3.0 MTPA of bauxite mining from the top of nearby Niyamgiri Hills and 75 MW captive Power plant at Lanjigarh in the district of Kalahandi, Orissa (INDIA) at an estimated cost of $1.7 Billion. As per the lease agreement signed on October2004 Vedanta Alumina Ltd. (VAL) a subsidiary of SIIL jointly with OMC will mine Bauxite from Niyamgiri hills that forms a mountain range located in the eastern part of INDIA and is about 250 in area lying between 19.33 degree N lat. and 83.25 degree E longitude {1}. Naturally gifted abundant Flora & Fauna, it too have large amounts of Bauxite in form of localized pockets up to a maximum depth of 30-35 metres which makes it an ideal place for Investment by Mining giants. Niyamgiri Hills are primarily associated with the Dongria kondhs that are one of the primitive and scheduled tribes of the state. According to the Rapid Environmental Impact Assessment (REIA) for SIIL prepared by the TATA AIG Risk Services Management Ltd. (TARSM) the estimated reserves of Bauxite are 73 MILLION tons and will last about a life span of 23 years.

Major emphasis in this report will be on the –
 Rejection of Stage – 2 Environmental clearance for mining sought from Ministry of Environment & Forests (MOEF), INDIA by Vedanta Alumina Ltd. and revocation of Stage-1 clearance previously given on the recomendation of Forest Advisory Committee (FAC) dated 24th august,2010 based on the report of N.C.Saxena panel headed by Dr. Naresh Saxena. Insights will be developed and critical analysis will be done to examine what caused to the apparent failure of the Mining project and repercussions persuaded by Vedanta Alumina Ltd. Lessons to be learnt report will be prepared so that in future these sort of project failures can be avoided to save Time and Money of Corporate Houses.

 

1.1 Methodology The data collected will be seconadary in nature and no primary research will be done i.e. Researches, Documentation, Reports available, Journals, Company website, Online news, MOEF website, Independent reviews conducted. Success and Failure will be defined in the terms of project with particular reference to OGC gateway Framework. 4

2.0 Success & Failure Success in terms of project management is very hard to define, The most common method used to define success is in terms of Project Management Triangle i.e. Cost, Quality and Time . In addition to the Project Management triangle there are other variables that have been added to define success known as square root. As project management is a learning profession , based on the past mistakes and ideas there are numerous theories and...

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