Karnataka government serves notice on JSW Steel for not supplying oxygen

The Karnataka government has served a notice on JSW Steel for what it found as the steelmaker’s failure to supply the committed quantity of liquid medical oxygen from its plant in Ballari district to treat Covid-19 patients.

The government has warned of stern action against the steel mill under the provisions of the Disaster Management Act, if the company failed to meet its commitment. Principal secretary to the revenue department (disaster management) N Manjunatha Prasad issued the notice to JSW Steel deputy managing director on Tuesday, pointing out the “lapse” in oxygen supply.

JSW executives did not respond to ET’s request for comment.


According to the notice, supplies from JSW's units in Vijayanagar, on some days, were less than half of the actual allocation of 580 tonnes a day.

The state has been heavily relying on the JSW plants for medical oxygen, with the company accounting for 70% of the central government’s liquid medical oxygen allocation to Karnataka (830 tonnes) from plants within the state.

“Any shortfall in supply, particularly from JSW Steel Ltd, cannot be offset from other sources. The shortfall in supply is likely to jeopardise treatment of Covid-19 patients in the state,” the notice said. ET has seen a copy of the notice.

The company supplies medical oxygen to the state government from its three plants in Ballari district, including two Praxair units. An official in charge of oxygen supply in the state said the company might have been diverting oxygen for steel manufacturing.

The state government said the company had created a precarious situation, endangering the lives of Covid patients. The government has asked it to ensure the supply obligation within 24 hours of receiving the notice, failing which it warned of initiating legal action against the company.