Bhubaneswar: The Directorate of Mines has ordered Sarada Mines Pvt Ltd (SMPL) to pay a compensation of Rs 2056.38 crore for carrying out mining operations without environment clearance (EC) and production of minerals in excess of the EC capacity.
The Directorate had earlier issued two show cause notices to the SMPL on October 6, 2020 and January 7, 2021 for excess production.
Although the company had submitted a reply on January 25, the Directorate was not satisfied and issued the demand notice for online payment of the compensation.
It may be mentioned that the Sarada Mines had moved to Delhi High Court in September 2020 after the Ministry of Forest and Environment asked the Odisha government to stop mining operation at Thakurani iron ore block.
The court had also directed the government to initiate action against the lease holder for violation of Environment Protection Act, 1986.
However, a day after the ministry’s directive, the Delhi High Court had stayed the order.
Sarada Mines used to supply iron ore to Jindal Steel and Power Ltd from the Thakurani block.
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