Odisha slaps Rs 32 billion demand notice on Tata Steel, OMC & others

The Odisha government has slapped a demand notice on a string of chrome ore miners including its own PSU Odisha Mining Corporation (OMC).

The demand notice seeks to recover Rs 32 billion for overproduction of chromite ore beyond the statutory limits. Notices have also been despatched to others like Tata Steel, Balasore Alloys, Ferro Alloys Corporation (FACOR), Indian Metals & Ferro Alloys Ltd (IMFA), Jindal Stainless Ltd, B C Mohanty, Mishrilal Mines and Industrial Development Corporation Ltd (IDCOL).

The chromite leaseholders have been asked to shell out their share of compensation by May 10.

Notices to chrome ore mines follow similar demand notices first served on iron and manganese ore mines and lately on Coal India subsidiary Mahanadi Coalfields Ltd (MCL). The state mines department after a Supreme Court order pronounced on August 2 , 2017 on illegal mining case in Odisha, had raised a demand amounting to Rs 175.76 billion on 131 iron ore and manganese mines. Later, MCL faced a demand notice of Rs 83 billion.

Chrome ore leaseholders are evaluating options, including legal on the demand notices. "Yes, we have got the demand notice. We have sent the same to our legal department for scrutiny", said Anil Sureka, managing director, Balasore Alloys Ltd.

IMFA sources said, "We are looking into the notice and will take appropriate steps."

Tata Steel and OMC authorities were not immediately available for comments.