The fate of Tata Steel’sSukinda chromite mine will be decided next Wednesday when a committee of the Odishagovernment will be taking a call on eight mines.
Mines older than 50 years had lapsed after the laws were modified last July, but the Mines and Minerals (Development & Regulation) (amendment) Act that the Modi government introduced this January grantednon-captive mines a lifeline of five years and captive mines a lease period extension of 15 years. According to Odisha government officials, Tata Steel’s Sukinda mine qualifies for this. The question before the committee when it meets, though, will be whether to extend its lease, last running as a merchant mine, as non-captive or captive.
The high-level committee set up to decide the renewals will also take up the case of BC Mohanty and Sons’ (Kamarda) chrome mines as well as the iron ore and manganese leases of RB Das’ (Dalpahar), Mala Roy (Jalahuri), Tarini Minerals (Deojhar), Gandhmardan Sponge Iron (Putuli Pani) Gitarani Mohanty (Malimunda), according to agenda notes.
The company’s chromite mine lease extension has been hanging due to the opposing expectations of Tata Steel, which would like to retain it as a captive mine, and other ferrochrome payers in the state like Visa and Jindal Stainless Ltd. Both depend on Tata’s chrome ore, which is used to make the ferrochrome that is critical in the making of stainless steel. The Indian Chamber of Commerce , the Odisha chapter of which is headed by Visa’s Vishal Agarwal, wrote to chief minister Naveen Patnaik arguing that Odisha will stand to lose a revenue of Rs.735 crore if the chrome mines of Tata Steel, Misrilal Mines and BC Mohanty were extended as captive mines.
Prasanta Patnaik