JSPL’s Iron-Ore Transportation from Arjun Saraswat’s Sarda Mines Pvt Ltd under Scanner

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    By Our Correspondent

    JODA/BARBIL/BHUBANESWAR: The Naveen Jindal led Jindal Steel and Power Limited is likely to face more tough time with locals in Joda-Barbil in Odisha’s mineral rich Keonjhar, were opposing Ore transportation from Arjun Saraswat owned controversial Sarda Mines Pvt Ltd, under Joda mining circle, facing Rs 900 crore fine in Supreme Court.

    Locals under the banner of Thakurani Surakshya Samiti of Barbil has started opposing Iron Ore transportation  from the Sarda Mines under Joda mining circle of Odisha’s mineral rich Keonjhar.

    Locals alleged that the company should have been transporting the materials on NH-520 via Murga road but the mining company is despatching the same on forest road passing through the villages of Thakurani, Soyabali and Dalki situated under reserve forest of Barbil.The movement of trucks and transportations have created a lot of pollution and traffic problem.

    Locals have also approached Joint Director of Mines, Joda, local Tehsildar and the Barbil DFO seeking action against JSPL and Sarda Mines. Joint Director of Mines Salil Kumar Behera however ruled out any violation of Transit Permit to transport Iron Ore.

    Barbil Tehsildar, KK Behera however assured the locals to look into the issue.  Arjun Sarasat, who owns Sarda Mines Pvt Ltd, said that the company was despatching the former mines materials to the buyers who were transporting the same to their respective destinations after obtaining due  permission from the proper authorities as per the Integrated Mines Minerals and Mechanised System.

    In February this year, JSPL was allowed  to transport iron ore from its supplier’s Sarda Mines Pvt Ltd.  A Supreme Court bench had earlier allowed the JSPL to transport high-quality iron ore lying in Thakurani block mines of Sarda Mines Pvt Ltd (SMPL). SMPL, a supplier of a high quality ore to the Naveen Jindal-led JSPL plant, was closed on March 2014, because of lack of environment clearances.

     The Supreme Court had allowed SMPL to resume its mining operations in Odisha subject to deposit of Rs 933 crore towards environmental compensation by February 29  this year.

    A three-judge bench of the apex court  had also ordered that the SMPL should file an undertaking to comply with all the rules, regulations and other mandatory provisions for carrying out mining operations and after that it can resume mining in the leased area.

    The SC in its August 2017 judgement had held that those mining lease holders, who had extracted minerals either without environment clearance or in excess of approved area, would be liable to deposit the mineral so raised (or its value, if disposed of) with the state government.

    “Owing to a dispute raised by some mining lease holders, including SMPL, as to whether in fact they had excavated minerals without requisite clearances, this Court referred their cases to the Central Environment Committee (CEC) for quantification of compensatory dues,” the court had observed.

    According to the CEC report, the M/s SMPL during the period 2001-02 to 2010-11 has produced 1,35,34,703 tonnes of excess quantity/illegal production of iron ore in violation of the environmental clearance granted by the Ministry of Environment and Forest and is liable to pay Rs 933,60,79,689.

    The court also noted that the committee of Justices GS Singhvi and Anil R Dave has not found the violation of Section 6 of the Mines and Minerals (Development and Regulation) Act, 1957 or of Rule 37 of Mineral Concession Rules, 1960 by the SMPL.

    Earlier, seeking permission to resume mining operations, the applicant had contended in the court that it is suffering irreparable injury and highlighted how it has already lost more than five and half years and how hardly six months of its lease period is left.

    The state of Odisha and CEC have expressed no objection against granting SMPL’s prayer for resumption, subject to it depositing the CEC­-assessed dues and strictly complying with all other mandatory rules, regulations and conditions for conducting mining operations.

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