Jindal Stainless’ (JSL) venture to obtain prospecting licence (PL) for iron ore mines in Orissa faced rough weather as its rival firm, Visa Steel, dragged the company into the court claiming it (Visa Steel) was one of the first claimants for the licence.
The Orissa High Court, on the plea of Visa Steel, stayed the process of according prospecting licence to JSL for the Harmotto iron ore mines in Keonjhar district.
The state government, vide a steel & mines department letter no. 3510/28.6.2009, had recommended to the Union ministry of mines that a PL be granted to JSL for the Harmotto iron ore mines spread over 892 hectares. The state government recommended the PL in favour of JSL, which is setting up a 1.6 million tonne integrated stainless steel complex in the state, because it had fulfilled all the memorandum of understanding terms and conditions. The state government’s recommendation, however, was challenged by Visa Steel in the High Court which said that the company was one of the first applicants for the Harmotto mines.
“The Orissa High Court has stayed the process of granting the PL in favour of JSL,” confirmed a senior executive of Visa Steel. He said the court has already issued notices to the state government and also all the parties in the case.
??According to the Mines and Minerals (Development and Regulation) Act 1957, the state government should have considered the application of Visa Steel before JSL,?? said the senior executive. Incidentally, the state government’s recommendation is still pending with the government of India.
??We have heard about the Orissa high court’s stay order,?? said Rajdeep Mohanty, chief resident manager of JSL. ??We are yet to get the papers,?? he added.
The lease of Harmotto mines was with Steel Authority of India before it was notified for grant of PL in 1991.