Odisha government scraps Odisha Mining Corp's joint venture deal with Sainik Mining

BHUBANESWAR: The Odisha government has scrapped Odisha Mining Corp's joint venture deal with Delhi-based Sainik Mining & Allied Services, the state's steel and mines minister, Rajani Kant Singh, said on Sunday.

The deal was cancelled on September 27. "OMC just complied with the government's directive," OMC chairman and managing director Saswat Mishra said. The state government's decision to cancel the deal follows criticism that the miner had conceded controlling stake in the joint venture to the private player.

A public interest litigation, too, had been filed in the Supreme Court alleging blatant violation of Coal Mines (Nationalization) Act-1973 by allowing the private player to have controlling stake in a coal mine allocated to a PSU.

Objections to the joint venture's equity pattern had also been raised by the coal ministry. The ministry had issued a show-cause notice to OMC in July 2010, urging the PSU to raise its stake in the JV to at least 51%.