Amid Rs 20,000 crore Odisha expansion, Jindal Steel’s Keonjhar mining permit verdict reserved by HC

The Orissa High Court, earlier this week, completed hearings and reserved its verdict on a petition filed by Jindal Steel Limited (JSL) contesting the cancellation of its operational clearance over 51.99 hectares of diverted forest land in the Roida-I iron and manganese mining block of Keonjhar.

The dispute arose after the Keonjhar Divisional Forest Officer issued an order on October 19, 2025, directing the immediate stoppage of mining activity. The New Indian Express reported that the company claimed that the above action came without warning and effectively shut down operations on the eve of Diwali.

Company Argues DFO Acted Without Power

JSL advocates argued that the company had obtained the mine through an e-auction in March 2025, following which it deposited more than Rs 700 crore in statutory dues and performance securities.

The lawyers argued that the DFO was unauthorised to withdraw the permission, since the company was only using an existing access route through the Siddhamatha Reserve Forest, a stretch historically used by earlier lessees and cleared by both administrative and judicial orders.

JSL told the court that the sudden halt put at risk its scheduled performance obligations, exposed it to the possibility of forfeited securities, and threatened the livelihood of nearly 400 workers dependent on the mine.

Forest Department Cites Lack Of Necessary Clearances

In its response, DFO Dhamdhere Danraj Hanumant maintained that the road being used to transport minerals did not have forest clearance and was allegedly created illegally by previous operators.

He stated that neither the state government nor his office could permit mineral transport inside a reserve forest without prior approval from the Ministry of Environment, Forest and Climate Change (MoEFCC).

As of the latest developments, the Orissa High Court has completed hearing all submissions in the mining permit case. The judgment, which has been reserved, will determine whether the DFO’s order stands or whether JSL can resume operations in the Roida-I block.

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Ongoing Expansion Of JSPL in Odisha

The courtroom dispute comes at a time when Jindal Steel is undertaking a major expansion of its Odisha operations.

Last month, the company commissioned a 3-million-tonnes-per-annum Basic Oxygen Furnace (BoF) at its Angul steel complex, raising its crude steelmaking capacity from 6 MTPA to 9 MTPA under an RS 20,000 crore investment plan aimed at scaling the facility to 12 MTPA.

JSL has so far invested close to RS 1 lakh crore in Odisha and plans to add another Rs 70,000 crore, including its venture into green hydrogen production with Jindal Renewable Power Private Limited. The first phase of that project aims to produce 4,500 tonnes per annum by December 2025, intended for low-carbon DRI-based steelmaking.