Balasore Alloys Limited asked to pay Rs 306 crore for excess mining

The State Government has slapped a demand notice on BAL seeking a compensation of around Rs 306 crore for excess mining within a period of about seven years.

Published: 17th April 2018 06:17 AM  |   Last Updated: 17th April 2018 06:17 AM   |  A+A-

By Express News Service

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.

Stay up to date on all the latest Odisha news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp