At a shareholders’ meeting of Vedanta Resources Plc in London, some fund managers protested over the company’s plans to build a bauxite mine in Kalahandi area, which is considered sacred by the local population.

Vedanta, however, defended its human rights record and denied that building a mine would harm the indigenous Dongria Kondh tribe.

‘The mining site is located in an uninhabited area, so no one will be displaced, but the project will help lift the poor Kalahandi district out of poverty,’ Vedanta Chairman Anil Agarwal said in the meeting.

‘Kalahandi is one of the most underdeveloped districts in India, suffering from child malnutrition, high infant mortality rates and lack of schooling and healthcare. We are committed and sensitive to the social and cultural aspects of the region and would do whatever is required to meet the needs of local people,’ added Agarwal.

Fund managers also accused Vedanta of not following guidelines of the Organisation for Economic Co-operation and Development (OECD). ‘You clearly have not engaged in the OECD process,’ said Steve Waygood, an official with asset manager Aviva Investors, part of insurer Aviva Plc.

Defending the company, Vedanta board member Naresh Chandra stated that poor countries such as India face a difficult balancing act in seeking to promote economic development while also protecting the environment and indigenous peoples. ‘It is very difficult for a hungry person to appreciate the beauty of nature,’ he said.

Also read: Is Vedanta letting us down?