These companies are already controlling two-thirds of the 1,261- hectare mine that was originally allotted to Tata Steel 40 years ago
Four ferro alloys producers, namely Indian Metals and Ferro Alloys (IMFA), Ferro Alloys Corporation (FACOR), Jindal Stainless Steel and Balasore Alloys, are eyeing large portions of a chromite mine controlled by Tata Steel in Odisha.
These companies have petitioned the High Court of Odisha seeking its direction to the State Government to hear them and take into consideration their requirement before renewing the lease of the mine at Sukinda in Odisha to Tata Steel.
They have pleaded that Tata Steel’s captive consumption was less than 20 per cent of the estimated 85 million tonnes reserve at the 406-hectare Sukinda mines which was leased to Tata Steel for 20 years and the lease expired in 2013. Now, Tata Steel has applied for third renewal. Chromite is the base metal used for manufacturing stainless steel.
Tata Steel did not offer any comment.
These companies, in a writ petition, have said since the chromite ore reserve was far in excess of Tata Steel’s requirement and considering their own ore requirement had increased sharply, most parts of the 406-hectare mine be allocated to them rather than the whole area being given to Tata Steel.
These companies are already controlling two-thirds of the 1,261-hectare mine that was originally allotted to Tata Steel 40 years ago.
They said Tata Steel’s requirement was assessed at 16 million tonnes in 1993 when the Supreme Court adopted the Sharma Committee report and redistributed the then 1,261 hectare mine held by Tata Steel whose mining lease area was brought down to 406 hectares. The remaining area was allotted to IMFA, Jindal Strips, Ispat Allows and FACOR.
Now stating that their requirement had gone up sharply, they were demanding major portions of Tata’s mine.
“Clearly a reassessment is required and the area beyond the captive need (of Tata Steel) has to be reduced. The exercise is mandatory and (our) competing need is also required to be considered while considering the third renewal of mining lease,” the petitioners said.
They have alleged that the Odisha Government was acting in haste to grant a third renewal to Tata Steel without hearing them and “without considering relevant factors to form an opinion that it is in the interest of mineral development to grant the renewal and such action is arbitrary…,” the petition said.
The ferro alloys players have also urged the court to direct the State Government to seek the Central Government’s prior approval for renewal of the mining lease.
Four ferro alloys producers, namely Indian Metals and Ferro Alloys (IMFA), Ferro Alloys Corporation (FACOR), Jindal Stainless Steel and Balasore Alloys, are eyeing large portions of a chromite mine controlled by Tata Steel in Odisha.
These companies have petitioned the High Court of Odisha seeking its direction to the State Government to hear them and take into consideration their requirement before renewing the lease of the mine at Sukinda in Odisha to Tata Steel.
They have pleaded that Tata Steel’s captive consumption was less than 20 per cent of the estimated 85 million tonnes reserve at the 406-hectare Sukinda mines which was leased to Tata Steel for 20 years and the lease expired in 2013. Now, Tata Steel has applied for third renewal. Chromite is the base metal used for manufacturing stainless steel.
Tata Steel did not offer any comment.
These companies, in a writ petition, have said since the chromite ore reserve was far in excess of Tata Steel’s requirement and considering their own ore requirement had increased sharply, most parts of the 406-hectare mine be allocated to them rather than the whole area being given to Tata Steel.
These companies are already controlling two-thirds of the 1,261-hectare mine that was originally allotted to Tata Steel 40 years ago.
They said Tata Steel’s requirement was assessed at 16 million tonnes in 1993 when the Supreme Court adopted the Sharma Committee report and redistributed the then 1,261 hectare mine held by Tata Steel whose mining lease area was brought down to 406 hectares. The remaining area was allotted to IMFA, Jindal Strips, Ispat Allows and FACOR.
Now stating that their requirement had gone up sharply, they were demanding major portions of Tata’s mine.
“Clearly a reassessment is required and the area beyond the captive need (of Tata Steel) has to be reduced. The exercise is mandatory and (our) competing need is also required to be considered while considering the third renewal of mining lease,” the petitioners said.
They have alleged that the Odisha Government was acting in haste to grant a third renewal to Tata Steel without hearing them and “without considering relevant factors to form an opinion that it is in the interest of mineral development to grant the renewal and such action is arbitrary…,” the petition said.
The ferro alloys players have also urged the court to direct the State Government to seek the Central Government’s prior approval for renewal of the mining lease.
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