India: Chromite Miners Get Hefty Demand Notice from State Govt

Tata Steel, OMC, IMFA, Jindal Stainless, Balasore Alloys in dock

Continuing its spree of raising demand notices for overproduction of mineral ores, the Odisha government has dealt the latest blow on chromite miners.

Chromite ore leaseholders have been asked to pay Rs 3,200 crore equivalent to USD 500 million, in compensation for extracting excess ore beyond the limits set. Orissa Mining Corporation (OMC) is saddled with INR 1,600 crore penalty, nearly half of the demand amount. The deadline for payments is fixed on May 10.

Notices have also been dispatched to others like Tata Steel, Balasore Alloys, Ferro Alloys Corporation (FACOR), Indian Metals & Ferro Alloys Ltd (IMFA), Jindal Stainless Ltd, B C Mohanty, Mishrilal Mines and Industrial Development Corporation Ltd (IDCOL).

Notices to chrome ore mines follows similar demand notices first served on iron and manganese ore mines and lately on Coal India subsidiary Mahanadi Coalfields Ltd (MCL). The state mines department after a Supreme Court order pronounced on August 2, 2017 on illegal mining case in Odisha, had raised a demand amounting to Rs 17,576 crore on 131 iron ore and manganese mines. Later, MCL faced a demand notice of Rs 8300 crore.

Chrome ore leaseholders are evaluating options, including legal on the demand notices.