Jamshedpur, March 14 (Source: Steel Guru): BL reported that the Orissa government's order banning what it feels “illegal” mining by private companies in the state's iron ore rich Banspani Jarauli areas has proved too much for TATA Steel.
The order, also promulgating Sec 144 Cr PC, has stopped iron ore loading at the company's Joda East mines, with the result iron movement from the mines to the Jamshedpur plant has remained suspended for the past few days. If the present situation continues, the production at the Jamshedpur plant will be hit.
TATA Steel's Joda East mines on an average load four rakes of iron ore a day, accounting for 40% of the Jamshedpur plant's daily requirement of 10 rakes.
An attempt has been made to step up loading at neighboring Noamundi mines also belonging to the TATA Steel. But the increased loading at Noamundi, it is felt, will not be enough to cover the shortfall.
The report quoted a TATA Steel source as saying that “There is nothing illegal about our mining at Joda East, as the mines are our own, siding is our own and we produce entirely for our captive consumption and we're open to all inspection and verification by any government agency. But the problem is that those who implement government orders do not differentiate between chalk and cheese”.
TATA Steel, it was informed, had already taken up the matter with the appropriate authorities at every level, both at the centre and Orissa, but with little success so far.
(Sourced from BL)
