Bhubaneswar | Aug 28, 2016: The Supreme Court after the first hearing of the Special Leave Petition (SLP) filed by Odisha Government against the Orissa High Court order allowing JSPL to lift its purchased iron ore from the Sarada Mines leased area did not deliver any express stay on the order of the HC.
JSPL had been issued notice to respond to the SLP and interim prayer of stay filed by the State Government. In a way, this has cleared the decks for JSPL to lift the iron ore from the SMPL leased area for which the Orissa HC has ordered the State Government to give lifting permission within four weeks from July 12. The State is left with no alternative but to give permission or invite contempt of the HC order where the deadline of four weeks expired on August 9, 2016.
In April, 2016 the HC had directed the Odisha government to allow JSPL to transport its legally purchased iron ore fines and lumps lying within the leasehold area of SMPL to the Company's Pelletisation Plant at Barbil and railway siding. When the State Government delayed in implementing the Order, the High Court again asked the State Government to comply with its order within four weeks from July 12, after hearing prayer by JSPL, seeking clarification regarding the timeline for execution of the order.
Now since, four weeks time has crossed and the Apex Court did not allow an expressed stay on HC order, State Government seems to have no option but give permission to JSPL to lift the iron ore. JSPL has purchased this material between 2004 and 2014 and had paid royalty and taxes for the same to the state government. In fact, this will be a welcome step by the State Government as the steel industry is reeling under heavy pressure for raw material because of various factors.
The act of the State Government in further dillydallying in granting the permission, as per High Court Order will not only be seen as a violation of the High Court but also will result in dampening the confidence of the Investors. Thousands of families will be impacted, if the Company closes operation or reduced operation due to non-availability of raw material. The Company has set up pelletisation plant at Barbil, which is largest pelletisation complex in India and is setting up a 6 MTPA steel plant at Angul with an investment of over Rs. 30000 Crore. Out of 6 MTPA, the Company has installed 1.5 MTPA steel making facility at Angul. The Company has been giving direct and indirect employment to more than 60000 people in the State.
According to industry experts, such delay in allowing JSPL to lift the raw material, lawfully purchased by JSPL, reflects poorly on the State policy making and also daunts the spirit of value addition industry in the state, which is struggling due to high input cost in the state and poor market conditions. It is a clear signal that the welfare of the people of Odisha is not at forefront of the State decision makers.
(Source: http://www.prameyanews7.com/)