BHUBANESWAR: The State Government has slapped a demand notice on Balasore Alloys Limited (BAL), formerly known as Ispat Alloys Limited, seeking a compensation of around Rs 306 crore for excess mining within a period of about seven years.The Balasore-based leading ferro alloy producing company has been asked to pay the amount by May 10, defaulting which action would be initiated as per the directive of the Supreme Court.The demand notice served by Deputy Director of Mines at Jajpur Road stated that the company, a lease holder of Kaliapani Chromite Mines over an area of 64.463 ha in Jajpur district had mined chrome ore without permission or in excess of the approved limit of production under environmental clearance during 2001-02 to 2007-08.
“Excess mining of around 12,80,135 MT of chrome ore was done during the period without lawful authority. The company was, in fact, indulged in illegal mining by violating the permission it was granted for production of ore,” said a mining department official.Sources said BAL had excess mining of 8,678 MT of ore during 2001-02, 1,47,225 MT during 2002-03, 1,95,204 MT during 2003-04, 3,79,791 MT during 2004-05, 2,28,224 MT during 2005-06, 2,64,588 MT during 2006-07 and 56,425 MT during 2007-08.
The company has captive mines in different locations like chromite ore mines in Sukinda valley at Jajpur Road and manganese ore nines in Hathoda of Madhya Pradesh.Though BAL was granted a single lease over 100.063 hectares of land in Kaliapani in 1999, the Government based on the request of the company allowed split up of above area into two blocks for working convenience. While block-I was non-forest land measuring 64.463 ha, block-II was forest land measuring 35.60 ha.
Contacted, a senior official of the company on condition of anonymity admitted that the notice had been received. “It is being examined by our legal wing. Whatever step is required will be taken at the right forum,” he added.Apart from BAL, four other leading ferro alloy manufacturers of the State have also been sand notices to pay compensation. While Tata Steel has been asked to pay about `270 crore, Facor will have to pay around `200 crore, IMFA `140 crore and Jindal Stainless `120 crore.