Selective Resistance against JSW Group in Odisha may Invite Revenue Loss to State Exchequer

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JSW Group Chairman Sajjan Jindal--file

By Our Correspondent

BHUBANESWAR:  The Sajjan Jindal led JSW Group, which had ventured into Odisha through Bhushan Steel and Power acquisition and subsequently bagging big mining blocks under Keonjhar-Sundargarh mining circles, seems finding it difficult to run its operations with selective attack and local resistance creating huge concern for the Steel maker. From Paradip to Barbil to Koira to Jharsuguda, vested interest group working overtime to stall JSW Steel’s operations in Odisha, sources said.

This came to light after efforts of the Sundargarh district administration to hold a public hearing for land acquisition for mining expansion of Shiva Cement Ltd (SCL), a unit of the JSW Cement, in Kutra block in Sundargarh proved unsuccessful due to stiff resistance by locals. The JSW Cement Ltd after acquiring the Shiva Cement Ltd (SCL) in Kutra block has got ownership of SCL’s cement plant and the Khatkurbahal dolomite and limestone mines.

The public hearing on Draft social impact assessment for acquiring 248.88 acre land at Khatkurbahal and Phalsakani villages of Khatkurbahal panchayat was scheduled on Jagannath temple ground. However, around 2,000 villagers led by Rajangpur MLA CS Rajen Ekka and former BJD minister Mangla Kishan staged protest preventing entry of the administrative team to the venue.

Sources said amid heavy deployment of police personnel, four roads leading to the venue were blocked with trees.  Earlier, workers sustained injuries following a tussle between JSW’s mining personnel and the villagers in Khatkurbahal village in Kutra block of Sundargarh district.

On June 25, locals had stopped excavation operation at the company’s dolomite and limestone mines at Khatkurbahal. For expansion of mining operation the JSW cement plant in Kutra block has proposed further acquisition of 248.88 acres at Khatkurbahal and Phalsakani villages of Khatkurbahal Gram Panchayat.

In Keonjhar-Sundargarh mining circles, the unviability of mismatch between unrealistic MDPA targets & reserve scarcity has made the company rethink the ownership of mines. Earlier, it had already offered surrendering Jajang & Ganua mines in the past to the Odisha Government. The company had started mining operation at Nuagoan, Jajang, Koira and Ganua mines, for which lease was granted by the State government, by paying applicable bid premium, royalty and other statutory fees in addition to Rs 1,510 Crore towards GST on Reverse Charge Mechanism basis.

In Paradip, despite huge support from locals, JSW Steel facing also trouble for its Rs 65,000 Crore project with Left learning activists’ everyday creating ruckus in Jagatsinghpur, sources said.

The mega investors such as JSW instrumental in generating high revenue for state exchequer deserve an investor friendly environment in the state. JSW paid the highest the total mining revenue that is Rs 12,210 crore in way of premium in FY’22 (upto March 31).  It was 52.5 % – lion’s share of the entire state mining revenue from auctioned mines.

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