NMDC Ltd faces tough time as Chhattisgarh hardens stand

Dantewada District Collector has served a separate notice to Bacheli and Kirandul mining complexes heads of the NMDC Ltd, charging them with "clearly violating rules by illegally storing iron ore at sites which are outside of the mines lease areas".

The notice came after a team of the state government's Mining Department carried out sudden inspection of the NMDC Ltd last week for two consecutive days at Bacheli and Kirandul complexes which jointly contribute roughly 75 per cent of the company's total annual iron ore output.

The notice was issued on June 12 and the NMDC Ltd had been given a 15-day period to reply. The state government's action has brought iron ore shipment to a total halt.

The spat between the mineral-rich government and India's largest iron ore miner in public sector began after the company refused to honour its commitment made to the state government late last year while getting its mines leases extended till 2035.

Sources claimed that the BJP-led Central government is adopting a hostile approach towards the Congress-run Chhattisgarh government and the NMDC Ltd has been caught between.

Chhattisgarh Chief Minister Bhupesh Baghel had also sent a strongly-worded letter to Steel Minister Dharmendra Pradhan last month in which he advised him to "instruct the NMDC Ltd to act more responsibly and honour its commitment to the state".

NMDC Ltd operates three iron ore complexes in the country, two of these are in Chhattisgarh while the third one in Karnataka. The company has been excavating iron ore in what is now Chhattisgarh state since late 1960s.

NMDC Ltd is also engaged in a legal battle with the BJP-run Karnataka government which scrapped lease of the company for Donimalai mine and all efforts of the mining major to resume production proved a futile exercise so far.