Tata Steel seems to have a tough time ahead for the in the State as the Department of Steel & Mines (DoSM) has started reviewing the Khandbandh Iron Ore Mine.
With Chief Minister Naveen Patnaik asking for reexamination of this mine for issuing Express Orders, the DoSM has begun the process of review, said sources.
Going by the production and dispatch figures of the Khandbandh mine, the Chief Minister ordered for such a move.
The Tata Steel, whose iron ore leases in Odisha include Joda East, Joda West, Katamati, Khandbandh and Bamberi, has applied for issuance of Express Orders for a third renewal.
Out of these mines, ore is being produced in three mines, Joda East, Katamati and Khandbandh. While ore production from Joda East and Katamati is near the approved environment clearance (EC) limit, the production in Khandbandh is very low.
The lease of the Khandbandh mine having an area of 978 hectares was granted way back in 1933 and it is awaiting a third renewal. During 2013-14, the approved EC limit was 5.40 million tonnes (MT) for Khandbandh while the production was 0.74 MT, according to sources in Directorate of Mines (DoM).
The approved EC limit in 2013-14 of all the mines was 25.4 MT while the company produced 14.63 MT during this period.
The Tata Steel has made its presentation to the State Government saying that the Khandbandh mine would be utilised for its upcoming Kalinganagar steel plant.
However, the State Government seems not convinced over this argument of Tata Steel, sources said. This is because the extent of value addition within the State by the company is 0.57 MT during 2013-14 out of the production of 14.63 MT of iron ore, said the DoM sources.