SC notice to Centre on Bhushan Steels plea

Written by Indu Bhan | Indu Bhan | New Delhi | Updated: Feb 12 2013, 05:35am hrs
The Supreme Court on Monday sought reply from the Centre and others on a petition filed by Bhushan Steel alleging willful and deliberate failure on the part of the Orissa government in providing captive iron ore mines for its integrated steel plant in Orissa.

A bench headed by Justice Altamas Kabir issued notice to the Union mines ministry, the state government and others on BSLs plea saying that it had invested over R25,000 crore in the project on the basis of express promise and representations made by the Orissa government. It had executed a memorandum of agreement in November 2005 for setting up a 5.6 mtpa capacity integrated steel plant in the state.

BSL said that it stood on equal and same footing as that of the Bhusan Power and Steel (BPSL), whose plea has been recommended by the state government to the Central government for grant of mining lease to meet the requirements of its steel plant.

Pursuant to the apex courts judgment of March last year, the state government in December last year recommended BPSLs case for mining lease to the Central government.

The Bhushan group had sought allocation of iron ore mines to it to set up an integrated steel plant in the state. However, after the signing of the MoU, there were disputes among the family members of the industrial family. The state government then stated that the MoU had become naught and asked the company to sign a new one.