Iron ore availability in Odisha is likely to increase if the Supreme Court allows Sarada Mines, Mesco Steel, OMDC – who were among major defaulters to sell their stockpile.
The recent order of the Supreme Court allowing merchant producer Mala Roy to liquidate its idle stock for paying off the court-mandated compensation has ignited hope for major defaulters like Mesco Steel, Sarada Mines and Orissa Minerals Development Company (OMDC).
All the above four miners and others had defaulted in payments to the Odisha government as compensation for excess mining between 2000-01 and 2010-11. The Supreme Court in an order related to case of rampant illegal mining in Odisha on August 2, 2017, had instructed the state government to slap demand notices to mop up Rs 17576.17 crore from the errant miners. The court insisted on collection of 100 percent compensation of the figure calculated by its panel- central empowered committee (CEC). The state government has hitherto realized around Rs 13,000 crore. Miners who did not heed the apex court’s stricture are facing certificate cases filed by the respective district authorities.
In an order dated July 16, 2019, the Supreme Court has allowed the applicant Mala Roy to sell its entire stockpile of 8.67 lakh tonnes of iron ore stacked up at its Jalahuri mines at Banspani in Keonjhar district under the supervision of the state authorities. The onus of surveillance will be on the Odisha government. The proceeds of the sale from the mines will be parked in deposit with the state. The sale proceeds are to be completed in a span of eight weeks, the apex court ruled.
“The court order is a huge bout of relief to the distressed miners who were unable to make payments in time. Now, the defaulting miners can petition the Supreme Court and get their grievances redressed. Almost all the miners have ample stock at their mines which can be monetized by exports if there are no takers in the domestic market”, said a mining industry source.
Mesco Steel which is saddled with over Rs 900 crore in arrears has already petitioned the Supreme Court, seeking permit to sell its ore inventory. Mesco’s case is up for listing in the court on July 26. The steelmaker which runs a plant at Odisha’s Kalinganagar steel complex has adequate iron ore stock and of richer grade. The company hopes to raise at least a third of its mandated compensation figure.
Sarada Mines is burdened with a staggering penalty amount of Rs 1938 crore. An array of charges on illegal mining is pending against the miner. Jindal Steel & Power Ltd (JSPL) was one of the major beneficiaries from Thakurani mines which was under Sarada Mines’ leasehold.
OMDC is another key defaulter whose arrears by way of compensation stood in excess of Rs 500 crore.
The Odisha steel & mines department had initiated certificate cases against the miners who failed to fork out the Supreme Court ordered compensation. Those who have done partial payments are exempted from coercive action like confiscation of assets and freezing of bank accounts. In Keonjhar, the richest mining zone, the local administration has launched coercive measures against six errant miners.
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