MoEF asks Odisha to take action against companies named in Shah report

The move would hit operations of major steel and mining companies like Tata Steel, Essel Mining, SAIL, JSPL,

The Ministry of Environment & Forests has directed the Odisha government to take action against companies, which have been named in the Shah Commission report on illegal mining.

A top Ministry official today confirmed that the Ministry has already “cleared directions to take action against companies to give them show-cause notices to cancel mining leases” as per the recommendation by the Justice M B Shah Commission to ban mining along the Baitarni river in Odisha.

The move would hit the operations of major steel and mining companies like Tata Steel, Aditya Birla Group's Essel Mining, Steel Authority of India, Jindal Steel and Power and Sarda Mines.

The panel had recommended action and review of the economic clearances given to 40 companies holding lease for operating 55 mines around the Baitarni river. The report had blamed both the Centre and state governments for illegal mining in the areas since 1992. While batting for criminal procedures against the officials responsible for the situation, the panel also sought cost recovery for illegally mined iron ore at market price or export price from companies involved.

Reports suggest that implementation of the report would affect Odisha’s exchequer because around 200 mines were closed in Orissa following the Shah commission inquiry. Meanwhile, Supreme Court is also likely to take up the report on January 27.  Most of the companies would have to seek environment clearances once again.

The Union Cabinet had decided early this month to place the report before a committee of secretaries to come up with an action taken report to be submitted before Parliament.  Tata Steel and Rungta Mines have five mines each in the region. This would also affect Tata Steel because of its over dependence on Odisha to source iron ore.

Other mines that may get hit are SAIL’s Bolani iron ore mine, Jindal Steel and Power’s Tantra Raikela Bandhal and Kulum  mine by Adhunik Metaliks. The panel had submitted its first report on July last year.