Shah panel seeks impact on Odisha's economy

The Justice M B Shah Commission of enquiry probing into allegations of large scale illegal mining activities in Odisha has sought a detailed response from the government on the impact of suspension of scores of mine leases on the state's economy. “The panel chairman- Justice M B Shah has wrote to the state chief secretary, seeking the government's views on the impact of suspension of a large number of mines on the overall economy of the state. With just a little over one-fifth of mines operating, it is bound to have a cascading effect on the economy as a whole apart from hurting mining revenue collection”, a senior government official told Business Standard.

Sarada Mines has been found to sell its entire run of mine (ROM) produce to JSPL without any agreement

The Shah Commission of enquiry, mandated to probe into allegations of large scale illegal mining, has asked Jindal Steel & Power Ltd (JSPL) and Sarada Mines to submit relevant information on violation of Rule-37 of Mineral Concession Rules-1960 by November 11. The probe panel has sought information on whether environment clearance was available for conveyor belt of Sarada Mines' Thakurani iron ore mine lease, the quantum of ore despatched to JSPL's end-use plant at Raigharh and if ore extracted from the mine was put to any other use.

The hefty penalty of Rs 70,000 crore on excess ore extraction that has caught many a mine lessee off guard is poised to swell further with the state government readying to send showcause notices to 44 more lessees.

A high-powered committee of the state government had found 104 lessees guilty of raising ore beyond IBM (Indian Bureau of Mines) ratified mining plan. The mining department has already slapped showcause notices on 60 miners in Joda and Koira sectors. The penalty on the balance 44 miners has been worked out at around Rs 5,000 crore.

Amid speculation that Larsen and Toubro Ltd (L&T) is planning to sell its stake in Dhamra Port Co Ltd (DPCL), an equal joint venture between the engineering giant and Tata Steel Ltd, the Odisha government has ruled out immediate allotment of land for the port's second phase expansion.

"Allotment of additional land to DPCL for the second phase development at this stage does not appear tenable. Further claim of additional land by DPCL shall be considered by the state government on the basis of a norm (thumb rule) being formulated,” G Mathi Vathanan, secretary (commerce and transport), Odisha, stated in a letter to Santosh K Mohapatra, chief executive officer (CEO) of DPCL.

Allotment only if port achieves 70% cap utilisation, gets environmental nod from MoEF, Green Tribunal

Amid speculation of stake sale by L&T, one of the promoters of Dhamara Port Company Ltd (DPCL), Odisha government has ruled out immediate allotment of land for the port's second phase expansion. Dhamara Port Company is an equal joint venture between the engineering giant and Tata Steel. "Allotment of additional land to DPCL for second phase development at this stage does not appear tenable. Further claim of additional land by DPCL shall be considered by the state government on the basis of a norm (thumb rule) being formulated”, G Mathi Vathanan, secretary (commerce & transport) - Odisha stated in a letter to Santosh K Mohapatra, chief executive officer (DPCL) of DPCL.

Non-payment of dues worth Rs 680 cr may lapse acquisition process

After an expert appraisal committee (EAC) of the Union environment ministry deferred green clearance for the Rs 16,000-crore Ultra Mega Power Plant (UMPP) in Odisha, the mega power plant faces hurdle over private land acquisition. The entire process of acquisition of private land measuring 2732.56 acres runs the risk of getting lapsed for the 4000 MW plant due to non-passing of award within the statutory period.

BHEL, L&T keen on only 26% equity

The 2,400 MW (3x800) coal-fired power plant proposed by Odisha Thermal Power Corporation Ltd (OTPCL), a 50:50 joint venture between Odisha Mining Corporation (OMC) and Odisha Hydro Power Corporation (OHPC) has hit a roadblock. The state government that is in favour of offloading 74% stake in the power project to a private player given OTPCL's lack of expertise in implementing a power project, is struggling to find a suitable strategic partner.

The Australian High Commission is pinning its hopes on the Odisha government and the Centre's new Mines & Minerals (Development & Regulation) MMDR Bill to pave the way for revival of its mining giant- Rio Tinto's iron ore mining project in the state.

The mining behemoth was to take up the $2 billion project jointly with state controlled miner- Odisha Mining Corporation (OMC). However, of late, OMC's reluctance to revive the project seemed to have queered the pitch for Rio Tinto.

Another Vedanta Group firm courts trouble in Odisha

After Vedanta Aluminium Ltd (VAL), a subsidiary of London listed Vedanta Resources Plc, was forced to shut its aluminium refinery in Odisha recently for want of bauxite, another group firm- Sterlite Iron & Steel Company has got a jolt. Since the land to be acquired for the steel project to be executed by the company falls under ayacut area, the state government is all set to withdraw notification already issued for takeover of private land totaling to 1,805.85 acres. The land was to be acquired in seven villages at Polasponga, the site of the project in Keonjhar district.

Procurement of government land by industries in Odisha is set to get dearer with the state government deciding to fix cost of such land at benchmark value, a departure from the existing system of offering government land at pre-determined rates.

The decision comes close on the heels of clearing of the new Land Acquisition Bill by an empowered group of Central ministers. While the cost of land had escalated, the government land rates in Odisha were not revised accordingly. The state government which had constituted three committees to consider possibility of benchmarking cost of government land has now entrusted the responsibility on its investment promotion agency- Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol).