Hyderabad, June 11 (PTI): NMDC (National Mineral Development Corporation) Limited, which has iron ore mines in Chhattisgarh, has come under the state government's scrutiny whether the public sector undertaking (PSU) is involved in storage of ore and transportation as per norms.

A senior official of the Chhattisgarh government said a task force was currently inspecting the mines leased out to NMDC Ltd and the plan of action depends on the outcome of the inspection.

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"There is a central flying squad inspecting the mines. Basically, they are checking whether the company is operating in the mine lease area as per the agreement or if there is any violation with regard to the storage and transportation of the ore, the official told PTI.

When contacted, the company officials said they were carrying out mining operations according to rules.

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"NMDC Ltd will place all relevant facts and legal position before the state government to resolve the issue amicably. The company has been associated with the people of Chattisgarh for over 60 years and we are committed to serve the state and its people in the years to come," a statement from the mining company said. In 2013, the Chhattisgarh government had issued a demand notice levying storage fee for the loading plants of the iron ore mines of the company. Based on the notice, the company paid the demand amount and later filed a petition in the High Court challenging the demand notice, the statement said. The court said the demand notice issued by the government levying storage fee was without jurisdiction and directed the state to refund the fee collected. In compliance with the court ruling, the state government had adjusted the amount deposited by the NMDC Ltd against the royalty amount payable. Subsequently, the government filed a review petition on the order passed by court and presently matter is sub judice, it said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)