During the height of the COVID-19 pandemic in 2021, India’s prominent mining and oil company, Vedanta, was reportedly engaged in covert lobbying efforts aimed at reducing environmental regulations in the oil and mining sectors, according to a report by the Organized Crime and Corruption Reporting Project (OCCRP).
The OCCRP report reveals that the Indian government approved these regulatory changes without public consultation and employed questionable methods to implement them.
As the COVID-19 crisis gripped India, Anil Agarwal, the chairman of Vedanta Resources Ltd, saw an opportunity to bolster India’s economic recovery. He wrote a letter to the then-environment minister, Prakash Javadekar, suggesting that mining companies could increase production by up to 50 percent without obtaining new environmental clearances. Agarwal argued that this would stimulate economic growth, generate substantial revenue for the government, and create numerous jobs.
Javadekar responded positively to Agarwal’s proposal, marking it as “VIMP” (Very Important) and directing officials to discuss the policy issue. Previous attempts by the industry to push for similar changes had failed, but this time, Vedanta’s lobbying proved effective.
In early 2022, the Indian environment ministry relaxed regulations to allow mining companies to boost production by up to 50 percent without conducting public hearings, a requirement that was considered the most burdensome part of the environmental clearance process by many in the industry. While other industry figures and the Indian mining secretary also advocated for relaxed rules, internal documents and government sources suggest that Vedanta’s lobbying played a pivotal role.
The government modified regulations by publishing an office memorandum, intended for inter-office communication, on its website, a move that experts argue permits influential individuals closely associated with the government to shape policies in their favor, even at the expense of local communities and the environment. This form of behind-the-scenes lobbying may also raise legal questions, as it circumvents public debate, according to a study by the Vidhi Centre for Legal Policy.
Debadityo Sinha, the head of the think tank’s climate and ecosystems team, expressed concerns about the compatibility of these changes with principles of inclusivity and democratic decision-making.
The OCCRP investigation examined thousands of government documents obtained through freedom of information requests to understand how key environmental regulations were altered during the pandemic. These records, including internal memos, closed-door meeting minutes, and letters like the one from Agarwal, suggest that government officials tailored the rules to align with industry requests, particularly those of Vedanta.
Vedanta, a powerful Indian corporation with over US$18 billion in revenues, has close ties to the ruling Bharatiya Janata Party (BJP) and its leader, Prime Minister Narendra Modi. The company and Vedanta-linked trusts reportedly donated substantial sums to the BJP, raising questions about conflicts of interest and undue influence over environmental policies.
The alterations to environmental regulations not only affect local communities but also have significant implications for India’s role in combating climate change. Despite Modi’s public commitments to reduce carbon emissions, experts analyzing the OCCRP findings argue that his government appears to prioritize the interests of oil and mining companies over climate action.
Environmental lawyer Ritwick Dutta stated that recent changes in environmental laws and policies seem to prioritize corporate interests and economic benefits over environmental concerns.
Vedanta responded to the OCCRP report by emphasizing its commitment to sustainable domestic production to enhance India’s self-reliance in natural resources.
Despite these allegations and concerns, both Modi’s office and the current environment minister declined to comment on the issue. The former environment minister, Javadekar, also did not respond to inquiries.
India’s government has faced criticism for suppressing environmental activism, with reports of increased intimidation and censorship since the BJP came to power in 2014. Several environmentalists and organizations have faced legal challenges and harassment, contributing to a chilling effect on environmental advocacy in the country.
The allegations of altering environmental regulations without public consultation, combined with concerns about the influence of powerful corporations, underscore the importance of transparent and accountable governance in addressing environmental challenges and climate change in India.
