Jajpur: Uncertainty loomed over some companies in the Kalinganagar Industrial Complex with Maithan Ispat having shut operation 20 days ago and Jindal Stainless Steel on the verge of closure.
This comes at a time when the government is claiming that the establishment of industries in the area has helped in solving the unemployment problem. However, the reality is different as many of the industries are passing through a bad phase.
This happened after the Supreme Court ordered to collect penalty from defaulting mining firms accused of excessive mining in August 2017.
Observers fear that Kalinganagar known as the steel capital of the country will soon become history if the government does not intervene.
The Mesco group owned Maithan Ispat closed 20 days ago due to lack of raw materials. The employees and casual labourers of Maithan Ispat have not got wages for two to three months.
The situation at Jindal Stainless Steel is no better as it is on the verge of closure. This has hit thousands of employees and casual labourers.
The closure of companies is an embarrassment for the state government as elections are round the corner.
The SC had directed to collect hundred per cent penalties from defaulting mining firms during the hearing of a case on mining irregularities. Thirteen mining leaseholders were asked to pay Rs 4,798 crore, the Mining Department said.
Among the defaulting firms, the highest penalty of Rs 3,256 crore was imposed on the Odisha Mining Corporation owned South Kaliapani Chromite Mines followed by Rs 85.40 crore on Kaliapani Chromite Mines located on 89 hectares of Jindal Stainless Steel land.
The defaulting mining firms moved the Supreme Court and got a stay on the previous order.
However, the Union Forest and Environment Ministry took the matter seriously and refused to grant further Environmental Clearance (EC) to the defaulting mining firms.
This hit them hard as the mining firms whose terms had expired could not continue mining without environmental clearance.
Jindal Stainless Steel which owns the Kaliapani Chromite Mines stopped mining in February after being denied environmental clearance.
Jindal Stainless Steel is buying chromites from government owned OMC at a higher price and suffering losses as the latter has not given it long term linkage.
The companies are suffering losses and are laying off employees as they have to purchase chromites and iron ore at higher prices.
A senior company officer on condition of anonymity said his firm had stopped mining from its captive mines after failing to get environmental clearance last year. This hit the company hard, but the firm was paying salaries and other benefits to employees due to humanitarian considerations. However, it is no longer possible to operate and the company is being closed, he said.
PNN