SC allows Jindal Steel to transport iron ore from Odisha’s Sarda Mines1 min read . Updated: 30 Jan 2020, 12:07 PM IST
- The decision will allow JSPL to transport Rs2,000 crore worth of 12 million tonne of iron ore from Sardda Mines to its pellet plant at Barbil, both in Odisha
- SMPL, a supplier of a high quality ore to the Naveen Jindal-led JSPL plant, was closed on March 2014
The Supreme Court on Thursday allowed Jindal Steel and Power (JSPL) to transport high quality iron ore lying at its Sarda Mines but with riders. The apex court has said that the iron ore can be transferred only after Sarda Mines Pvt Ltd (SMPL) pays off its dues to the Odisha government.
The decision will allow JSPL to transport ₹2,000 crore worth of 12 million tonne of iron ore from Sardda Mines to its pellet plant at Barbil, both in Odisha. At 11.10 am on the BSE, shares of JSPL traded at ₹174.85, recovering from the day’s low of ₹172.40.
The Supreme Court had on 16 January reserved its order in the case after taking on record from SMPL an undertaking of payment of ₹933 crore towards environmental compensation to the state government. An official, familiar with the development, said SMPL has already cleared its dues of ₹933 crore.
SMPL, a supplier of a high quality ore to the Naveen Jindal-led JSPL plant, was closed on March 2014, because of lack of environment clearances. Following the closure of the mine, JSPL has been sourcing raw material for its plant from the open market.
The Odisha government had challenged an order passed by the Odisha high court giving JSPL access to 12 million tonne of iron ore from Sarda Mines. The state government had claimed that this could not be allowed without an environmental clearance under the Mines and Minerals (Development and Regulation) Act, 1957.