* Brazil agency OKs start-up of huge dam in Amazon

* Consortium has go-ahead to clear forest, start site

SAO PAULO, Jan 26 (Reuters) - Brazil's environment agency approved on Wednesday the start-up of the Belo Monte power dam, a controversial $17 billion project in the Amazon that has drawn criticism from native Indians and conservationists.

The agency, Ibama, issued licenses to the consortium in charge of Belo Monte to start the construction site and to clear 238.1 hectares (588 acres) of forest land, about the size of Monaco.

On November 15th the Ingaricó, Macuxi, Patamona, Taurepang and Wapichana Indigenous Peoples of Raposa Serra do Sol, Brazil finally received a favorable decision from the Inter-American Commission on Human Rights. Commission found that the government’s treatment of Indigenous Peoples in Raposa may violate human rights is now in the final stage of reviewing the case and will soon issue a concluding report.

After decades of protests and battles, the proposed hydroelectric Belo Monte Dam was given written approval by Brazil’s president President Luiz Inacio Lula da Silva. The dam is to surpass the Three Gorges Dam in China in size and volume.  The hydroelectric project on the mouth of the Xingu River will devastate vast regions and ecosystems in the Amazonian state of Para and displace more than 50,000 Indigenous people.