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HC upholds Odisha move to earmark 50% of iron ore for state steel cos

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Odisha Sun Times Bureau
Cuttack, Feb 24:

The High Court of Odisha yesterday dismissed the review petition filed by the Federation of Indian Mineral Industries (FIMI) challenging the circular issued by Odisha Government asking iron ore mines to sell 50% of their produce to steel companies in the state.

iron ore mining

The iron ore companies of Odisha had approached the High Court challenging the circular of the state government. The two-member bench of Chief Justice Amitabh Roy and Justice AK Rath dismissed the review petition and upheld the decision of the state government.

The High Court had upheld the decision of the government on April 2, 2014 while directing it to draft a policy to ensure smooth facilitation of iron ore to the steel companies of the state within three months, following which FIMI had filed the review petition.

FIMI had also registered a complaint with the Union government arguing that the state doesn’t have power to take a decision to this effect. The Union government, in turn, had written to the state government in February 2013 asking it to withdraw the circular.

It may be noted that the state government had come up with a circular on December 5, 2012 asking iron ore minign companies in Odisha to sell 50% of their produce to steel companies of the state. The iron ore companies were free to sell the rest 50% of their produce anywhere inside or outside the state, the cicrcular said.

The circular followed repeated requests by steel companies of the state, which rued that they were in dire straits due to the non availability of raw materail.

 

 

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