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Issue of requirement of Storage License at the Loading Plants of the NMDC Ltd. in the State of Chhattisgarh

In certain sections of media it has been reported that Chhattisgarh Government on Thursday disallowed NMDC to carry out Iron Ore storage, loading in its Bailadila Mines at Dantewada District. Though there is no written communication from the State Government, however, it has been reported that NMDC has not obtained storage licenses for its Loading Plants. To clarify this, NMDC would like to bring the following facts:
  • Loading Plants of NMDC are located on the land acquired by NMDC within its mining complexes. 
  • During the year 2013, Chhattisgarh State Govt. had issued a demand notice levying storage fee for the loading plants of the Iron Ore Mines of the NMDC Ltd as per provisions of Chhattisgarh Mineral (Mining, Transportation and Storage) Rules, 2009.
  • Based on the demand notice issued by the State Government, NMDC paid the demand amount and afterwards filed a Writ Petition in the Hon’ble High Court at Bilaspur challenging the demand notice. After hearing both the parties, Hon’ble High Court held that demand notice issued by the Chhattisgarh State Government levying storage fee was without jurisdiction and directed the State Government to refund back the storage license fee collected from the NMDC. 
  • In compliance to the above order, State Government had adjusted the amount deposited by the NMDC against the royalty amount payable. 
  • Subsequently, State Government has filed a review petition on the order passed by the Hon’ble High Court and presently matter is subjudice. 

NMDC will place all the relevant facts and legal position before the State Government to resolve the issue amicably.NMDC is having a long association of more than 60 years with the people of Chhattisgarh and is committed to serve the State and its people in years to come.

NMDC is carrying out mining operations lawfully and stands committed to follow all the applicable statutory provisions religiously.

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