In a major setback to Tata Steel, the Orissa High Court has passed an interim order restraining the State Government from taking a final decision on the grant or renewal of the company’s mining licence for chromite mines in Sukinda, Odisha, till June 19. The order was passed by a two-judge bench of Justice BK Nayak and Justice AK Rath.

Chrome ore is used to make ferro chrome, which is used in stainless steel production. The chromite mines belonging to Tata Steel in Sukinda are spread over 406 hectares. The second renewal, which expired in January 2013, was extended for three months. The steel maker was later granted a temporary working permit for one year till April 12, 2014. Tata Steel, in fact, had to stop iron ore mining operations last month, following the Supreme Court order banning companies with temporary working permits. However, the State Government renewed the captive iron ore mining licence of eight companies, including Tata Steel and SAIL.

When contacted, a Tata Steel spokesperson refused to comment, stating that the company had not received the Court order.

Renewal trouble Tata Steel began to face problems with chrome mining when other ferro alloy producers opposed its renewal of licence, on the ground that the reserves of 85 mt were far in excess of what the steel maker needed for captive consumption.

Ferro alloy producers such as Indian Metals and Ferro Alloys, Jindal Strips, Ispat Alloys and Facor (Ferro Alloys Corporation) also have mining interests in the region.

Tata Steel’s requirement was assessed at 16 mt in 1993, when the Supreme Court adopted the Sharma Committee Report for distributing the right for mining.

An official of a large ferro alloy producer said: “Tata Steel’s requirement of chrome ore for captive consumption would be far less than the 85-mt reserves, as per their mining plan of 2013.” He added that the State Government needed to make a fresh assessment of the requirement of the other ferro alloy makers. Sources said the Odisha Government has sought the views of the Indian Bureau of Mines before it takes a final decision on renewing the licence.

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