MSP SPONGE IRON LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) IN the present writ petition challenge has been made to the decision taken on 18.02.2010 (Annexure -12) by opposite party No.1 - State of Orissa, represented through its Principal Secretary to Government, Department of Steel & Mines, Orissa, Bhubaneswar. Under Annexure -12, opposite party No.1 has rejected the M.L. Application No.1217 dated 07.09.2001 filed by the petitioner and recommended partly in respect of an area of 101.6864 hectares of land for Iron and Manganese Ores situated at village Pattabeda in the district of Sundargarh, Orissa in favour of opposite party No.4 and rest part of said areas in favour of opposite party No.5. Further prayer of the petitioner is to issue a writ of mandamus or any other appropriate writ directing opposite party No.1 to recommend the petitioner s M.L. Application No.1217 dated 07.09.2001 to the Central Government for grant of mining lease in its favour in respect of the same area of 101.6864 hectares situated at village Pattabeda in the district of Sundargarh for iron and manganese ores as has been similarly done in the case of M/s. OCL India Ltd., in respect of their applied area in Kundaposi vide letter dated 08.07.2008 under Annexure -14.c

(2.) THE petitioner s case in a nutshell is that pursuant to IPR, 1996, the petitioner has set up a mineral based industry for manufacturing of Sponge Iron with an installed capacity of 54,000 MT per annum. The sponge iron unit of the petitioner is located in a rural area in village Haldiaguna, P.O. Gobardhan, Dist: Keonjhar, Orissa 2which is a "Zone -B category backward area as defined under IPR, 1996. It is a small scale industrial unit and is duly registered under the District Industries Centre (for short, DIC), Keonjhar. Later in April, 2008, the petitioner took over a steel manufacturing unit belonging to one of its associated company, namely, MSP Steels Pvt. Ltd., Haldiaguna, Keonjhar by way of amalgamation.

(3.) THE petitioner company is a mineral based metallurgical industry where iron ore is used as base raw material for manufacturing of sponge iron ore which is further converted into steel. The company s annual requirement of lump iron ore, base raw materials for steel making for the existing 54,000 MT per annum capacity sponge iron is 1,51,200 TPA. In addition to the existing sponge iron and steel manufacturing facilities, the promoters of the industry have decided for expansion of their sponge iron and steel manufacturing facilities at Haldiaguna and have also taken various steps for acquisition of land, captive power, private railway siding and necessary statutory clearances. The petitioner has also a Ferro Plant in Manuapally village, in the district of Raigarh, Chhatisgarh with an installed capacity of 26,657 TPA and manganese ore mineral is the base raw material for producing ferro alloys products such as Ferro Manganese and Silico Manganese etc.