JSPL sighs a relief as Odisha HC rules out state govt ban order

In what can be termed as a big relief for investors of Jindal Steel & Power, in a significant development on Friday, Odisha High Court lifted the ban earlier imposed by the administration allowing JSPL to lift iron ore material Sarda Mines. The iron ore material now can be transported to its pallet plant enabling JSPL to re-initiate its operations in the local plant. Markets on Friday responded to the news positively and JSPL stock was seen soaring high. The ban was imposed by the state government following which JSPL had filed a petition in the High Court. However, possibilities of the state government challenging the High Court order further are not being ruled out. Earlier Shah Commission also had raised certain objections over the business transactions between JSPL and Sarda Mines. The disputed mines also allegedly do not have necessary environment clearances, a matter which is being looked into by country's apex court and also the Ministry of Environment and Forests.

An official release of the company reacting on the HC order said, ""We have been informed that petition to transport our iron ore fines, which are lying at the dispatch point within Sarda Mines has been accepted by the Honourable High Court of Odisha. This will enable us to transport our material to our pellet plant."

JSPL stock which opened in the BSE on Friday at Rs 60, closed at Rs 66.65, posting a clear 10.62 per cent rise while on NSE it closed at the same price. During the day. it went upto Rs 67.85 on BSE while on NSE, it went upto Rs 67.90.