Bhubaneswar: The Central Pollution Control Board (CPCB) has directed the immediate closure of Shyam Metalics & Energy Limited’s integrated steel plant at Pandloi near Rengali in Odisha’s Sambalpur district, citing repeated and serious non-compliance with environmental norms.
The directive, issued under Section 5 of the Environment (Protection) Act, 1986, comes after multiple inspections and prior warnings went unheeded. The company was previously instructed in May 2025 to rectify issues such as excessive emissions and deficient pollution control systems, but a fresh inspection carried out on March 17 and 18 this year revealed widespread non-compliance, prompting the central regulator to issue the closure order.
Key Violations
Air Pollution: Particulate matter emissions from several stacks exceeded permissible limits, with readings as high as 268 mg/Nm³ against the prescribed standard of 50 mg/Nm³. The plant lacked adequate air pollution control devices, proper fume extraction systems, and effective continuous monitoring mechanisms, resulting in uncontrolled emissions and fugitive dust.
Water and Wastewater Management: Despite a mandate for zero liquid discharge, inspectors found evidence of wastewater flowing through drains leading outside the plant boundary, including bypass channels and a damaged wall allegedly used for discharge diversion. Effluent treatment facilities were inadequate, and critical infrastructure such as sewage treatment plants was either absent or non-operational.
Hazardous Waste Handling: Improper storage and management of hazardous waste, including tarry residues and oil-contaminated materials. Over 50 drums of hazardous waste were found stored in the open without labelling and necessary safeguards, posing risks to soil and groundwater.
Regulatory and Operational Lapses: Certain units operated without proper approvals, including unauthorised emission configurations and additional processing facilities. The company also failed to adhere to slag management guidelines and submit required environmental reports.
This is not the first environmental concern linked to the facility. In August 2025, the Odisha State Pollution Control Board (OSPCB) investigated allegations of an ash pond leak from the plant’s power unit.
The CPCB has made resumption of operations conditional on full compliance and prior approval. The company must submit a detailed compliance report within 30 days, or face further legal action. District administration teams have reportedly begun sealing the plant.
Shyam Metalics & Energy Limited operates a large integrated steel facility in the area, with capacities for sponge iron, billets, rolled products, pellets, and captive power generation. The closure is expected to impact local operations and employment until corrective measures are verified.
