Odisha Auction 2020 : Supreme Court Holds Transfer of Essel Jilling Mines till Further Order

Supreme Court holds transfer of Essel‘s Jilling iron ore mines auctioned under MMDR act, amid a writ petition filed by Essel Mining Insustries Ltd, a subsidiary company of Aditya Birla.

The case will be heard in third week of March.

What is the case all about?

It is submitted that the Applicant had obtained all statutory clearances on 8 October 2014 and filed l.A. No. 39 of 2014 for the resumption of mining operations of Jilling- Langalota Mining Lease on 12 November 2014.

However, IA No. 39 of 2014 remained pending before the Hon’ble Supreme Court till February 2018. The Applicant was only allowed to resume its mining operations in Jilling-Langalota Mining Lease on 15 February 2018. Therefore, the Applicant could not continue mining operations over Jilling-Langalota Mining Lease for 39 months, i.e. 3 years and 3 months, the period during which its application for resumption was pending before this Hon’ble Court despite having all statutory clearances and for reasons beyond the control of the Applicant.

As such the Applicant has filed an IA No.7121 of 2020 before this Hon’ble Court praying for extension of the mining lease period of the Jilling-Langalota Mining Lease on account of time lost in litigation only for the period when the mine was not working/not resumed even though the Applicant had obtained all the statutory clearances/approvals required and which can be termed as reasons beyond the control of the Applicant.

In the meantime the State of Odisha has vide Notice Inviting Tender (NIT) notified the Jilling-Langalota Mining Iron Ore Block for settlement afresh by way of auction dated 6 Dec’19 in exercise of power under Section lOB of the MMDR Act.

The Applicant has a good prima facie case in the pending IA No. 7121 of 2020 for permission to carry out mining for the extended period in light of the averments made therein.

The order copy received to SteelMint reads as – Heard and perused the instant applications for directions stay. The auction will be subject to final order of this Court. Put up in the third week of March, 2020.

What happened in Essel’s Jilling mine auctions 2020 ?

Jilling Langalota mines received aggressive participation from bidders. Outstripping other bidders, Shyam emerged as preferred bidder for the mine quoting a premium of 135%, as per sources.

Essel Mining has EC limit of 6.28 MnT pa and resources of 79.122 MnT. It recorded production of 6.27 MnT in FY19 and 4.46 MnT in FY20(till Nov).


Leave a Reply

Your email address will not be published. Required fields are marked *