SC Allows Sarda Mines To Resume Mining In Odisha

The Supreme Court has allowed Sarda Mines Pvt Ltd (SMPL) to resume its mining operations in Odisha subject to deposit of Rs 933 crore towards environmental compensation by February 29 to the Odisha state government.

A bench comprising Chief Justice of India S A Bobde, Justice B R Gavai and Justice Surya Kant also allowed the Naveen Jindal-led Jindal Steel & Power Ltd (JSPL) to transport high-quality iron ore lying in the Thakurani block mines in SMPL.

While reserving its verdict in the case on January 16, the Supreme Court had stated that it was not averse to allowing JSPL to transport the high-quality iron ore lying stacked at the non-functional SMPL for its pellet plant in Odisha.

SMPL was a supplier of high-quality ore to the Naveen Jindal-led JSPL plant and was closed on March 31, 2014, for want of environment clearances.

Earlier, SMPL’s counsel had told the Supreme Court that on January 15, it had allowed SMPL to resume mining operations at Thakurani iron ore mines provided it makes the payment of its dues to the state government within a month.

SMPL’s counsel had also sought time till the end of February to comply with the direction of payment on the ground that the mine was closed for more than five years due to which the company did not have any earnings.

Senior advocate Mukul Rohatgi, who appeared for JSPL, had stated that the company has taken loan of Rs 2,000 crore from SBI to purchase minerals stacked in one corner of the mine. He had stated that JSPL would pay royalty for the minerals to the state of Odisha.

The Supreme Court had also asked SMPL to file an undertaking to comply with all rules, regulations and other mandatory provisions for carrying out mining operations.