JSW Steel Faces Rs. 1472 Crore Mining Dues Demand from Govt. of Odisha
JSW Steel Ltd. has received a demand notice from the Govt. of Odisha for payment of Rs. 1472,69,47,420/- as mining dues. The demand is towards the shortfall in despatch vis-a-vis minimum despatch requirement under rule 12 A(2) of Mineral (other than Atomic & Hydrocarbon Energy Minerals) Concession Rules, 2016 for the entire period of 5th year of lease (from 27.06.2024 to 26.06.2025) of the Jajang Iron Ore Block located in the District of Keonjhar, Odisha. The company had ceased mining operations in December 2024 due to un-economic operations and had surrendered the block as per the Final Mine Closure Plan approved by Indian Bureau of Mines. JSW Steel believes that due legal process has been followed and plans to take appropriate legal remedies available to it under law in consultation with its legal advisors.
Key Highlights
- JSW Steel received a demand notice from the Govt. of Odisha for Rs. 1472 crore mining dues.
- The demand is for the shortfall in despatch vis-a-vis minimum despatch requirement under rule 12 A(2) of Mineral (other than Atomic & Hydrocarbon Energy Minerals) Concession Rules, 2016 for the 5th year of lease.
- JSW Steel had ceased mining operations in December 2024 and surrendered the Jajang Iron Ore Block due to un-economic operations.
- The company plans to take legal remedies available to it under law in consultation with its legal advisors.
- The mining operation of the aforesaid Iron Ore Block was ceased with effect from December 2024 as per the Final Mine Closure Plan approved by Indian Bureau of Mines.