HC Reserves Verdict in Jindal Steel’s Plea Over Mining Ban in Keonjhar
Battle Over Forest Access Road Pits Industry Against Conservation Concerns
Bhubaneswar : The Orissa High Court reserved its judgment on a crucial case that could shape the future of mining operations in forest-linked areas of Odisha. The single-judge bench of Justice S.K. Panigrahi heard final arguments in a petition filed by Jindal Steel Limited (JSL), which challenged the state forest department’s decision to revoke its working permission over 51.99 hectares of diverted forest land in the Roida-I Iron and Manganese Mine area of Keonjhar district.
The dispute stems from an order issued by the Divisional Forest Officer (DFO), Keonjhar, on October 19, 2025 — a day before Diwali — which abruptly halted JSL’s mining operations. The company, terming the order “arbitrary and without jurisdiction,” approached the court seeking immediate relief.
Senior advocates Ashok Parija and Gopal Jain, appearing for JSL, argued that the DFO acted beyond his authority under the Odisha Forest Act, 1972. They claimed that JSL lawfully acquired the mine through an e-auction held in March 2025, after paying over ₹700 crore in statutory dues and performance securities.
The counsel further argued that the company was using a pre-existing access road through the Siddhamatha Reserve Forest — a route that had already been used by previous lessees with official approval and even judicial validation.
They contended that the DFO’s action had not only violated natural justice but also jeopardised hundreds of livelihoods. “Such abrupt stoppage without notice risks forfeiture of performance securities and undermines investor confidence in Odisha’s mining sector,” the petition stated.
On the other hand, the case saw the intervention of local resident and former Bhadrasahi sarpanch, Kasturi Oram, who supported the DFO’s decision. Represented by advocate Lalitendu Mishra, Oram argued that the suspension of mining activity was a necessary step to prevent large-scale ecological damage in the area.
According to Oram, the constant movement of ore-laden trucks through the reserve forest had caused severe environmental degradation, disturbing both local communities and wildlife. “Development cannot come at the cost of forest survival,” he said in his petition.
In a counter affidavit, DFO Dhamdhere Danraj Hanumant defended the revocation order, asserting that no valid forest clearance existed for the access road being used by JSL. He maintained that the road was originally constructed without authorisation by earlier lessees, in violation of the Forest (Conservation) Act, 1980.
The DFO clarified that neither he nor the state government had the authority to permit the transportation of minerals through reserve forest areas without prior approval from the Ministry of Environment, Forest and Climate Change (MoEFCC). “Any such movement would constitute an offence under forest and environment laws,” the affidavit stated.
The case has broader implications for Odisha’s mining governance, particularly in balancing industrial growth with environmental compliance. Keonjhar, one of the state’s richest mineral belts, has long been under scrutiny for the ecological toll of extensive mining operations.
Industry watchers believe the High Court’s verdict could set a precedent for how access and logistics through forest areas are handled in future mining leases. A decision in favour of JSL could offer relief to several mining companies facing similar access restrictions, while an endorsement of the DFO’s stand may reinforce environmental safeguards across the state’s mining zones.
With arguments concluded, all eyes are now on the Orissa High Court’s forthcoming judgment — one that could redefine the contours of mining and environmental governance in mineral-rich Odisha.
