In a relief for Jindal Steel and Power Ltd (JSPL), the Supreme Court on Thursday gave approval to lift Rs 2,000 crore worth of iron ore from Sarda Mines Private Ltd (SMPL) in Odisha, subject to riders.

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JSPL MD VR Sharma said this move will follow repayment of penalty dues by Sarda.

“This is a great relief to us in terms of managing the working capital. We are thankful to SC to have listened to us. This matter was going on for the last five and a half to six years’ time."

Finally, the court has allowed us to pick up the material, which is lying in the premises of Sarda Mines. The company will be now in a position to take out the material, he said.

“The rider was that SMPL must pay Rs 933 crore to state government. Our legal team told us that we have got the permission and Sarda has already made the payment of Rs 930 crore penalty. It was a liability on Sarda Mines,” he added.

“The payment for the iron ore, which is lying in SMPL, has already been made by us. The royalties are also paid. The proceeds are only if we are selling the material to a third party but if we are using it in-house then only up to the amount of the working capital loan given to us is to be paid. That is not a problem, we are paying it. We are also allowed to sell it outside as per government policy,” Sharma said.

There was only one rider that JSPL will be allowed to pick up their iron ore once the payment is made, he further said.