The Orissa government has decided to file an objection petition at the revision tribunal of the Union mines ministry, which had last month stayed the state government's order of imposing Rs 6 crore penalty on JSL Stainless Ltd.
“I am directed to send herewith the objection petition on behalf of the state respondent against the petition for grant of stay filed by the applicant,” the state steel and mines department said in its letter to the Central mines ministry.
The Deputy Director of Mines (DDM) of Jajpur road circle, after finding gaps between the amount of mines dump or tailings stored at the Kaliapani chromite mines allotted to JSL and the book balance, had asked the company to deposit Rs 6 crore towards cost price (including royalty) of chrome ore.
The DDM held that the balance tailings come to 236,836.33 tonnes as against the book balance of 246,991 tonnes, causing shortage of 10,155.33 tonnes. Accordingly, JSL was liable to pay for the cost price, royalty and other taxes for shortage quantity of 10,155.33 tonnes of tailings and feeding quantity of 6,530 tonnes.
The revision tribunal has held that the demand for price recovery under Section 21 (5) of Mines and Minerals (Development & Regulation) MMDR Act-1957 is thoroughly misconceived and devoid of any merit.
“Tailings have no commercial value and thus are waste materials. Even their reporting is not mandatorily required under the MMDR Act and Mineral Concession Rules-1960. However, the same has been properly reported voluntarily by the company in its annual return and has been verified and certified by mining officials,” said the order of the tribunal while staying the DDM's penalty order last month.
The DDM had also refused to issue transit pass (TP) for mineral transportation and Mining Dues Clearance Certificate (MDCC) to the company.
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The tribunal, in granting stay to the financial penalty order, has held that the state government cannot withhold TP citing upon non-submission of penalty amount since as per law, the state is bound to issue the pass within two weeks of request. Similarly, MDCC also cannot be withheld as the order is sub-judice.
JSL raises chromite from the Kaliapani mines for its Vizag steel plant.