

SAMBALPUR: The recent action against Shyam Metalics and Energy Limited’s plant at Pandloi in Rengali block for allegedly failing to comply with environmental directives has put other polluting industries in the region under intense scrutiny.
Amid the crackdown on industrial pollution, residents allege that at least 10 sponge iron plants in Rengali, largely operating on direct reduced iron (DRI) technology, are continuing to function in violation of environmental norms for years.
Adding to the problem is the massive movement of heavy vehicles along Sambalpur-Rengali-Jharsuguda stretch. An estimated 4,000 to 5,000 trucks are plying daily in the area to compound dust and particulate pollution, pushing air quality to alarming levels. In February, the Air Quality Index (AQI) in Rengali had reportedly touched 300, categorised as ‘very poor’.
Earlier, a study submitted by IIT-Kharagpur to the National Green Tribunal had stated that coal-based small, medium and low-capacity DRI sponge iron plants were the major polluters in at least six states including Odisha. It had recommended closure and shift to rotary kiln technology. The NGT too had directed the Central Pollution Control Board (CPCB) to compile detailed data on these pollution-intensive units.
Although regulatory guidelines have called for a shift from DRI units to comparatively cleaner blast furnace systems, the transition has remained limited due to higher capital costs. Against this backdrop, residents urged authorities to widen enforcement and take action against all non-compliant units, rather than limiting it to a single case.
Rengali MLA Sudarshan Haripal also flagged the issue of pollution in the area and alleged that industrial effluents have rendered hundreds of acres of fertile farmland barren, crippling agricultural activities despite the region’s proximity to Hirakud reservoir.
On the other hand, sources said, compliance reports have been submitted to the CPCB by both the Odisha State Pollution Control Board and Shyam Metalics following the sealing of the company’s Rengali unit. The CPCB will verify the corrective measures undertaken by the company to address the violations. A team from the central body is expected to inspect the site. The decision on reopening the plant will be taken by the member secretary of CPCB based on the inspection report.
The Rengali plant of Shyam Metalics was closed and sealed in two phases on April 6 and 7 following directives from the CPCB. The action was taken following multiple inspections and earlier directions issued in May 2025, which the company failed to comply with.
A fresh inspection carried out on March 17 and 18 revealed widespread non-compliance of air pollution control norms, wastewater management, hazardous waste handling and regulatory approvals, prompting the central regulator to issue closure directions.