By Bizodisha Bureau, Bhubaneswar July 18, 2016 : Jindal Steel and Power Ltd [JSPL] has something to smile with the Odisha High Court once against directing the state government to allow the Company to transport over 12 million tons that the company had purchased from Sarada Mines (SMPL) in four weeks.

The High Court in April 8 this year had asked the state government to allow JSPL to transport its legally purchased iron ore fines and lumps lying within the leasehold area of Sarada Mines Pvt Ltd [SMPL] to the company’s 10 million ton pellet plant at Barbil in Keonjhar district and railway siding.

It had also struck down the letter of the deputy director of mines, Joda issued on March 31, 2014, directing stoppage of ore transportation.

The HC’s order followed after Court noticed that its earlier order has not yet been complied by the state government. The court also asked the government to explain the reasons for the delay in implementing the order.

JSPL had bought 12 million ton of iron ore from SMPL during 2004 and 2014 by paying Rs 1,869 crore to the state government towards royalty and taxes for the same.

Incidentally, the government had neither withdrawn the letter nor given the permission to JSPL to transport the raw material as yet virtually defying the HC order.

JSPL plant at Angul having two million ton per annum steelmaking capacity through DRI route has been seriously affected due to acute raw material crunch. The Company now is in the process of adding 4 million ton of steel capacity through blast furnace route by the end of this fiscal.

The total investment by the company in the state is pegged at around Rs 22,000 crore, creating direct and indirect employment for about 25,000 people.