Why Odisha’s Iron Ore Firms Are On The Supreme Court’s Radar

The BJP-run Odisha government seems to be facing the wrath of the Supreme Court. This is because they have failed to take action on mining companies who have over-mined iron resources –in excess of their environmental clearances. The apex court has now put the onus on the Odisha government to enforce recovery against erring mining companies and present a status report by December 1, 2025. The Supreme Court stance is clear — the defaulting mining lessees must bear the consequences of over mining and cannot go scot-free pocketing the value of illegal mined ores. Sources say, the outstanding amount currently stands at Rs 2,700 crore plus accrued interest. The Supreme Court is now insisting on a 100% penalty on the value of illegally mined ore earlier. How will the state government act on the Supreme Court’s directive as this issue has been pending since 2018? The key issue is twofold: one, how the Odisha government will enforce recovery orders against erring mining companies with regard to compensation and second, how capping of iron ore mining would lead to substantial deficit of production of steel and other metals in view of growing market demand. Incidentally, Odisha contributes to half of the country’s iron ore production. Both the Centre, and State governments have urged the Supreme Court not to impose a cap on iron ore mining in Odisha, warning it could derail India’s growth story and Atmanirbhar Bharat mission.