Keonjhar / Bhubaneswar: Operations of the Kasia iron and dolomite mines in Keonjhar district is yet to start due to blockade by a group of protestors for the past few weeks.
Jindal Steel and Power Limited (JSPL), which in September won the bid to mine the block at an auction at a 118% premium, has made the upfront payment, performance security and stamp duty. In November, the Odisha government executed the mining lease deed for this reseves in Badbil. However, despite it being a working mine, the Naveen Jindal-led JSPL is struggling to start its operation since November 23.
“A group of about 25-50 people have been illegally blocking entry to the mines and not allowing entry of any men and machinery of JSPL to the site,” an industry insider said.
“The blockade has prohibited JSPL from entering the mines and carrying out mining operations as prescribed under sub-section 1 of section 24A of MMDR Act, 1957,” the insider pointed out.
Apart from the losses to the company, industry sources said non-operation of the mines is causing revenue loss of around Rs 15 crore per day to the state government besides loss of livelihood to local people.
The company has intimated the district administration about the issue. A coordination meeting was also held with local community members and opinion leaders in the presence of the district functionaries on the site. However, the blockade continues.
Kasia iron and dolomite was not in operation from 2012 to 2019. It resumed operation for about six months – October 2019 to March 2020, when the mining lease expired. After it was allotted to JSPL in the latest auction, the local people hoped it would revive their livelihood sources with restart of the mines. “However, the illegal blockade has delayed the process. The state government has also not been able to resolve the issue though it has lost huge revenue,” said a local villager favouring mining.
A JSPL spokesperson said, ” The company has taken all possible steps to make the mines operational. The state government officials have been informed but our fervent requests have not yet been acted upon.”
The spokesperson added: “We are a socially- responsible corporate and known for our CSR programmes for improving the Human Development Index on sustainable basis. We shall always position the community interests at the frontline of our mining project.”
