JUDGEMENT
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(1.) Leave granted.
(2.) With the intention of setting up an integrated steel
plant in the State of Orissa, Bhushan Limited, entered into
discussions with the State Government in 2001 in thatregard. Pursuant to such discussions, Bhushan Limited
applied to the Industrial Development Corporation of India
(IDCO) for acquisition of land measuring 1250 acres, for
setting up the proposed plant in the identified villages of
Thelkoloi, Dhubenchhabrar and Khariapalli (Lapanga) in the
District of Sambalpur. On 13
th
November, 2001, Bhushan
Limited applied to the Industrial Promotion and Investment
Corporation of Orissa Ltd. (IPICOL) for appraisal and
recommendation for acquisition of land for the aforesaid
purpose to IDCO. Bhushan Limited also addressed two letters
to the Collector, Sundergarh and Collector, Keonjhar on 28
th
November, 2001, applying for grant of lease for mining of
iron ore for use in the proposed plant. The applications
were received in the Collector's office on 3
rd
December,
2001, 4
th
December, 2001 and 1
st
March, 2002. On the basis of
such applications filed by Bhushan Limited, a meeting was
held on 27
th
March, 2002, between the Chief Secretary,
Government of Orissa and Bhushan Limited, in which theGovernment agreed to accord due priority to Bhushan Limited
for grant of suitable iron ore areas and also agreed to
recommend the proposal of Bhushan Limited to the Government
of India for grant of a Coal Block.
(3.) Thereafter, meetings were held between Bhushan Limited
and the representatives of the State Government and one such
meeting was held on 24
th
April, 2002, under the Chairmanship
of the Chief Minister, relating to the setting up of the
steel plant at Lapanga. The said meeting was confirmed by
IDCO and the Water Resources Department and it was decided
to prepare a Memorandum of Understanding (MOU) to be signed
by the parties for setting up of a 1.2 million tonnes steel
plant under Phase-I and a 2.8 million tonnes steel plant in
Phase-II in Lapanga, in the District of Sambalpur. The MOU
contained the commitment of the State Government to
recommend to the Central Government grant of iron ore mines
to the Appellant for its use in the plant to be set up at
Lapanga. As far as the grant of the iron ore mines isconcerned, the State Government agreed to make the following
recommendations to the Central Government:
a) For grant of 96 million tonnes iron ore
reserves in Joda Barbil Sector of Keonjhar
(Thakurani area) for 50 years requirement of
the plant.
b) For additional 128 million tonnes of iron ore
reserves in Keora, District Sundergarh, to meet
a requirement of 1.6 million tonnes for 50
years.
The total requirement of 200 million tonnes was split up
into two parts, i.e., 96 million tonnes and 128 million
tonnes respectively, and the same were to be met from the
Thakurani mines situated in the Joda Barbil sector and from
the Keora area of Sundergarh District.;
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