By Anurjay Dhal
BHUBANESWAR: The Naveen Jindal led Jindal Steel and Power Limited and Arjun Saraswat led Sarada Mines Private Limited got a huge relief after Delhi High Court stayed the order of Union Environment, Forest and Climate Change to halt mining operations at Thakurani iron ore block under Joda mining circle of Odisha’s mineral rich Keonjhar, highly placed sources said on Thursday. “In my opinion, the impugned order (of MoEF&CC) dated 21.09.2020 is prima facie erroneous. The petitioner has made out a prima facie case. Till the next date of hearing, the impugned order shall remain stayed,” said the September 23 order of Justice Jayant Nath.
Sources closely monitoring the issue, however informed that after the Delhi HC stayed the order, it will help both SMPL and JSPL to continue mining operations at Thakurani iron ore block under Joda mining circle of Odisha’s mineral rich Keonjhar.
The Thakurani block of SMPL was a supplier of iron ore to Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) Group. The Centre’s order for closure of Thakurani Mines was about to seriously impact raw materials supply to JSPL but Delhi HC came in rescue of them as the miner has necessary environment clearances, sources added.
The Supreme Court had in January given a relief to SMPL by allowing it to resume mining operations at Thakurani iron-ore mines provided it paid around `933 crore towards environmental compensation to the State Government and gave an undertaking to comply with all the rules, regulations and other mandatory provisions for carrying out mining operations.
Sources said, SMPL has necessary environment clearance for mining operations . Sources in Barbil-Joda area said, JSPL’s operations also will not be affected as the Company is shifting its iron ore stock. There is no time limit to transport. The company has received clearance from the government as per directives of the Supreme Court. The Ministry’s order doesn’t prevent JSPL from transporting its existing inventory. Besides, company took very limited quantity from Sarda mine in the first half of the ongoing financial year, that too at market prices. The only impact would be of Rs 200 per tonne that the mill was saving from logistics cost.
The Naveen Jindal led JSPL, runs multiple operations in Odisha’s mineral rich Joda-Koira belt in Keonjhar-Sundargarh and coal rich Angul. JSPL largely depends on raw materials supplied from SMPL while Company’s Guali Block, which it had won in the last auction, not started operations.
The Ministry had earlier asked the Odisha Government to stop mining operation at the Thakurani iron ore block SMPL and initiate action against the lease-holder for violation of Environment Protection Act, 1986. The MoEF&CC advised not to give consent to operate the mines till the project is granted environmental clearance by the State Pollution Control Board. The Ministry has further directed to take action under sections 15/19 of the EPA, 1986 against SMPL for carrying out mining operation without environment clearance (EC) and production of minerals in excess of the EC capacity.
