Jajpur: The Centre’s consent for conversion of 66.20 hectare of forest land for expansion of Jindal chromite mines at Sukinda in Jajpur district has rekindled the hopes of employment and revival of several ancillary businesses in the region.
The matter came to the fore after the forest advisory committee issued notice in this regard. The consent for conversion of forest land for expansion of the mines was given at the meeting of Union Environment, Forest and Climate Change Ministry February 21. This will pave way for reopening of mines which are lying closed for the last three years.
The Centre’s decision will help in reemployment of over 500 employees and workers of the mines which are lying closed since March 2019. The decision will also help in generating livelihood for scores of people and revival of several industries and business enterprises lying closed for a long period.
Reports said the Jindal Stainless Steel owned Kaliapani chromite mine was shut down March 9, 2021.
The decision to close down the mines was taken under Section-75 (A) of Industrial Dispute Act, Central Rules-1957 and Section 25 (C) of Compensation Act of the government. Prior to that, Jindal Stainless Steel had submitted a proposal for conversion of 66.20 hectare of forest land August 2, 2016.
Later, the Supreme Court issued order for collection of 100 per cent penalty from the defaulting mine owners for irregularities in the mining operation.
As a result, the district mines department had estimated to collect more than Rs 4,798 crore from 13 mining leaseholders in Jajpur district. Many mining owners had moved the Supreme Court and managed to get stay order on collection of the penalty.
However, the Union Environment, Forest and Climate Change ministry refused to give environmental clearance to the defaulting leaseholders to operate their mines. As a result, the concerned leaseholders have stopped extracting minerals from the mines after expiry of their lease periods.
On the other hand, government-owned Odisha Mining Corporation (OMC) is accused of selling chromites at an exorbitant rate to various industries. This has led to a decline in their profits as they pay a very high price to purchase the minerals.
This has also led to closure of Mesco Steel at Kalinganagar while Maithan Ispat and Nilachal Ispat have been sold off. The closure of industries has resulted in loss of livelihood for scores of people and workers and deterioration of the local economy.
