The Odisha government has slapped a penalty of Rs1,448.8mn on ArcelorMittal India for a shortfall in the dispatch of iron ore from the Thakurani mines, according to media reports.
The minimum annual dispatch target for iron ore was pegged at 4.40mn mt in the first year, as per the Mines Development and Production Agreement (MDPA). The steel manufacturer, however, has dispatched 4.20mn mt during the first year of the lease, thus recording a shortfall of around 196,688mt.
The company has 15 days to make digital payment of the amount, failing which, the directorate of mines will take action deemed proper to recover the funds.
ArcelorMittal successfully bid for the Thakurani mining block, whose lease period expired before March 31, 2020. The center has made various changes in the Mines and Minerals Act, 1957, and Minerals Concession Rules, 1960 to encourage hassle-free production and smooth availability of ore in the market.