The tussle between JSL Limited (formerly Jindal Stainless Ltd) and Visa Steel over the Orissa government's recommendation for the grant of prospecting license (PL) for Horomoto iron ore mines in Keonjhar district to JSL has taken an ugly turn.
The Union ministry of mines in a report dated June 4 this year has approved the PL in favour of JSL and the information has been posted on its website.
The ministry's approval has come at a time when an interim stay passed by the Orissa High Court on September 7, 2009 relating to grant of PL to JSL is still in force, much to the chagrin of Visa Steel.
Satyabrat Singh, vice president (mines), Visa Steel said, “The Union ministry of mines has approved the PL in favour of JSL and the information has been made public on the ministry's website. This can be construed as a contempt of court as the stay order granted by the Orissa High Court in the case is still in force.”
As per the stay order, the Central government is free to take a decision, but such decision shall not be given effect to without leave of the court.
When contacted a senior official of the Union mines ministry, said, “It has not come to my notice that the Orissa High Court has granted any stay order relating to the recommendation of PL in favour of JSL and whether the stay order is still in force. In case of any such stay order, it has to be examined whether the stay is on the Orissa government or on the Union ministry of mines. The nature of the stay order has to be studied before commenting on the matter”.
Earlier Visa Steel had locked horns with JSL over the issue of grant of PL. The company alleged that the Orissa government had recommended JSL's case for PL despite the fact that Visa Steel had signed the MoU (Memorandum of Understanding) and had also applied for PL and Mining License (ML) earlier than JSL.
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While Visa Steel had signed the MoU with the state government in December 2003, JSL had inked the MoU in June 2005.
Moreover, Visa had applied for PL in January 2007, two months before JSL had placed the application for the same in March 2007.
Visa Steel has termed the state government's recommendation for PL in favour of JSL as a violation of the verdict of the Orissa High Court and the Centre's Mines and Minerals Development and Regulation (MMDR) Act.
“For the past five years, Visa steel has been forced to run its plant (blast furnace and DRI kilns) on iron ore purchased from state owned and private mining companies at prices which are extremely high”, the company said in a statement.