Odisha Sticks To Stand As Sarda Mines Moves SC Seeking Thakurani B Iron Ore Mines

Bhubaneswar: The Odisha government has reiterated its stand before the Supreme Court (SC) not to execute mining lease period for another 10 years in favour of Sarda Mines (SMPL) pertaining to Thakurani B block iron ore mines in Keonjhar, official sources said here on Monday.

The government has reaffirmed its position in an affidavit filed with the apex court recently after Sarda Mines moved SC praying for a direction to the Odisha government to allow it to mine over 947.046 hectare Thakurani B mines for another 10 years. The private company approached the top court after the Orissa High Court in January turned down its writ petition claiming its lease lapses in 2031. The state government declared it lapsed on September 21 last year. Dismissing the writ on the grounds that the orders of HC in 1991 and 1998 do not operate as ‘constructive res judicata’ and SMPL had waived its right for grant 30 years of lease by executing a lease for 20 years, the Orissa HC pointed out that the MMDR Act amended in 2015 bars any renewal beyond 20 years.

The HC, however, has asked the state government to consider afresh by March 7 its demand for Rs 2045.51 crore from SMPL as compensation for alleged excess production of iron ore.
“The matter is before the Supreme Court. We are waiting for the next hearing,” Director, Mines, Debidatta Biswal told Odisha Bytes.

On January 13, the Odisha government asked SMPL to hand over possession of the mines, including stock of minerals, plant and machineries, building structures, etc to the mining officer. Subsequently, the mining company approached the SC and a Bench, headed by Chief Justice N V Ramana, asked the state government to maintain the status quo with regard to mining auction and not to take any coercive action against the mining company till the next date of hearing.

The company holds that there was a settlement, which received HC approval in July 1998, under which its predecessor had surrendered a bigger block (measuring 2,590.4 acre of Thakurani iron ore mines, Keonjhar) of the two mining leases and was granted the other block for 30 years. Court orders establish that Sarda received grant of mining lease for 30 years from the date of execution of the lease deed in December 1991, it maintains. SMPL supplies ore to Jindal Steel and Power Limited’s facilities.

The state government, on its part, has argued that in 1989 a 30-year lease was promised to S L Sarda and M L Sarda family. However, a 20-year lease deed was executed with a different corporate entity, SMPL.