Jindal Steel and Power Ltd (JSPL) begins transportation of iron ore from its supplier’s mine in Odisha after favourable Supreme Court order

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Jindal Steel and Power Ltd (JSPL) has announced that it had started the transportation of iron ore from its supplier’s mines in Odisha. The company told the BSE that ‘following the recent order by Supreme Court order, it has the transportation of already-processed and royalty-paid iron ore from its supplier”s mines in district Keonjhar, Odisha.”

This was after the top court last week allowed the JSPL to transport high-quality iron ore lying in Thakurani block mines of Sarda Mines Pvt Ltd (SMPL), which had to shut down its operations in March 2014 due to lack of environment clearances.

The SMPL is a supplier of high-quality ore to JSPL plant. A Supreme Court Bench also allowed SMPL to resume its mining operations in Odisha after depositing Rs 933 crore towards environmental compensation by 29 February.

The JSPL said in a statement that the latest relief had come after legal efforts of almost six years. A statement by the JSPL read, “The company is pleased to report that following the recent order by Honorable Supreme Court it has started transportation of its already processed and royalty paid iron ore from its supplier’s mines in the district Keonjhar Odisha.”

JSPL MD VR Sharma said, “This is a great relief to the company in terms of bolstering its working capital and raw material security.”

The decision saw a positive impact on the shares of JSPL that were trading at Rs 178.95 per share on BSE in the morning trade. This is the increase of 2.34% from the previous close.

 

 

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