New Delhi [India]: Jindal Steel and Power Ltd (JSPL) said on Tuesday it has started transportation of its already processed and royalty paid iron ore from Sarda Mines Pvt Ltd (SMPL) in district Keonjhar of Odisha after the Supreme Court’s order issued last week.
The relief to JSPL has come after legal efforts of almost six years. “This is a great relief to the company in terms of bolstering its working capital and raw material security,” said Managing Director V R Sharma. On January 30, the Supreme Court allowed JSPL to sell Rs 2,000 crore worth of iron ore inventory from its SMPL if it pays Rs 933 crore in dues to the state government by February 28.
The decision will allow JSPL to transport Rs 2,000 crore worth of 12 million tonnes of iron ore from SMPL to its pellet plant at Barbil, both in Odisha.
On January 15, the Odisha government had said it will allow JSPL to sell iron ore from SMPL if the steelmaker gave an affidavit of undertaking worth Rs 900 crore for royalty dues owed to the state.
SMPL, a supplier of high-quality ore to the Naveen Jindal-led JSPL plant, was closed in March 2014 due to lack of environment clearances. JSPL was then forced to source raw material from the open market.
The Odisha government had challenged an order passed by the Odisha High Court giving JSPL access to 12 million tonnes of iron ore from SMPL. The state government had claimed that this could not be allowed without an environmental clearance under the Mines and Minerals (Development and Regulation) Act 1957.