The State Commerce & Transport Department has objected for the second time to the proposal of the Jindal Steel & Power ltd (JSPl) to take over control of the Gopalpur Ports ltd (GPl).
The department has told the Managing Director of the GPl that the company’s proposal to transfer its shares in favour of the JSPl is not tenable under Clause-4 of the Concession Agreement. The GPl had requested the Government for approval to transfer its share in favour of the JSPl in a letter in 2011.
But initiatives at the JSPl level are on to overcome the objection raised by the department. The JSPl had succeeded in taking over the Sharada Mines in Thakurani hills of Keonjhar district violating the MCR-37 and Mines Act with the knowledge of the State Government in 2000. Although the Government has initiated an inquiry regarding violation of the MCR-37, excess mining without environment clearance, violation of forest laws, etc., the mining operations are allowed to continue till the date with the support of the Government.
The Shah Commission has also inspected this mine and raised many queries against the company. The JSPl was again in controversy when the company was found to be a beneficiary in the illegal allocation of coal blocks in the State. The Centre was forced to withdraw the coal block allocated to the JSPl to bail out the Government from the alleged coal scam.
The company, which operates private railway sidings in Keonjhar and Sundargarh districts, tried to regulate port business in the State by buying shares of the Gopalpur Port ltd.