In a big blow to Vedanta Resources, government on Tuesday rejected environment clearance to its USD 1.7 billion bauxite mining project in Orissa after accepting recommendations of its key panel clearing such ventures.

Giving reasons for the denial of clearance, Environment Minister Jairam Ramesh told reporters that "there has been a very serious violation of Environment Protection Act, Forest Conservation Act and the Forest Rights Act. "There have been no emotions and no politics and no prejudice involved in this report. I have taken this decision in a proper legal approach," he said.