The sudden closure of as many as 26 mines of Sundargarh and Keonjhar districts recently, following a Supreme Court’s direction to close all mines running under deemed extension for a second term, has come as a major jolt for the industrial houses.
The shutdown is likely to trigger a raw material crisis for many local industries, including the Rourkela Steel Plant (RSP).
Sources said as per a recent directive of the apex court, the State Government had no other option but to direct closure of as many as 26 mines, which were under second time deemed extension status. Deputy Director of Mines (Koira) on May 17 last had directed closure of as many as 13 mines in Sundargarh district, following which the work in these mines have been stopped.
The major mines which faced closures include two mines of SAIl (Steel Authority of India limited), two mines each of Rungta Group and Aryan Mines and three mines of the Odisha Manganese Minerals limited.
The sudden closure of mines is obviously going to have an adverse effect on the local economy and revenue generation for the State exchequer. The RSP is also likely to face raw material crisis, since two of the SAIl mines have been closed.
The shutdown has evoked sharp reactions from different quarters, mainly from different trade unions, expressing their apprehension that thousands of locals will face a livelihood crisis unless these mines are not opened at the earliest.
CITU has threatened to launch an agitation in front of Assembly from May 27, demanding quick action of the State Government to resume production in these mines.
“looking into the crisis which emerged after the closure of about 26 mines in the State, the State Government must act promptly to ensure that all the formalities are completed at the earliest and mines production are commenced,” said CITU State general secretary BC Mohanty.