The Bhupesh Baghel-led Congress government in Chhattisgarh has warned NMDC that it will cancel the State-controlled mineral producer’s lease if the latter does not keep its commitments.

In a letter addressed to Union Steel Minister Dharmendra Pradhan, the State Chief Minister has warned that this is the last chance for the State-owned mining company to keep up its assurances in the State or face cancellation of mine leases.

This is significant, as a big chunk of NMDC’s mining activity is based out of Bailadila mines in Dantewada, Chhattisgarh.

For more than a year, NMDC has been facing mining lease issues and had got in trouble with renewal of mines even with regards to the Donimalai mines with the Karnataka government.

After intense deliberations, the Chhattisgarh government had agreed to extend the mining leases, earlier this year, to 2035. In return, it sought commitment from NMDC to ensure certain payments and also take up certain works it had assured in the State.

Significantly, N Baijendra Kumar, Chairman and Managing Director of NMDC, is an IAS official who represents the State. He has had some meetings with the Chief Minister, and had assured him of keeping up the commitments.

Thus far, there has been no word from the Steel Ministry to NMDC, and the company has also not commented on the development.

A spokesman of NMDC ,responding to the development, said, "NMDC has excellent relations with Chhattisgarh Government and we are sure all issues will be amicably resolved, safeguarding the interests of Chhattisgarh state and NMDC."

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