Odisha moves SC against HC order on Sarada Mines

The Odisha government on Monday said it has contested the order pronounced by the Odisha High Court (HC), allowing lifting of piled up iron ore stock by Jindal Steel & Power (JSPL) from Sarada Mines, in the Supreme Court.

"We have filed a Special Leave Petition (SLP) in the Supreme Court against the HC order on Sarada Mines," Odisha's steel and mines minister Prafulla Mallick said.

Last month, the HC had directed the Odisha government to implement its April 8 order, allowing JSPL to lift iron ore within four weeks.

The HC had asked the Odisha government to allow JSPL to transport its legally purchased iron ore fines and lumps lying within the leasehold area of Sarada Mines to the company's palletisation plant at Barbil and railway siding.

JSPL had bought this material between 2004 and 2014 and had paid Rs 1,869 crore to the state government towards royalty and taxes for the same.

In its April 8 order, the court had also quashed the letter of the deputy director of mines, Joda issued on March 31, 2014, directing stoppage of ore transportation.

Currently, JSPL is the biggest buyer of iron ore in Odisha. The steel maker is buying 0.6 million tonne of iron ore from Odisha every month to feed its pellet plant and steel plant at Raigarh in Chhattisgarh.

Due to high operating cost, the company is forced to run its pellet plant and steel plant in Odisha at less than 50% capacity.