Odisha chief secretary BK Patnaik today appeared before the Supreme Court along with state steel and mines secretary Rajesh Verma and Aditya Prasad Padhee, principal secretary to Chief Minister, for contempt of court in a matter related to granting of iron ore mines to Bhushan Power & Steel Ltd (BPSL). The SC has asked the state government to file its reply in three weeks. The court in March had allowed the appeal of Bhushan Power & Steel and directed the state government to act according to the memorandum of understanding (MoU) between the two parties, signed on May 15, 2002. Overruling an earlier order of the Odisha high court order, the SC had asked the state government to make recommendations to the Centre for granting iron ore mines, as per the MoU. BPSL required 224 million tonnes of iron ore for a period of 50 years. As per the MoU, the company will establish an integrated steel plant with capacity of 1.2 million tonne per annum (MTPA) in the first phase which would be enhanced to 2.8 mtpa in the second phase. Bhushan group had sought allocation of iron ore mines to it to set up an integrated steel plant in the state. However, after the signing of the MoU, there were disputes among the members of the industrial family. This had prompted the state government to declare the MoU signed with Bhushans null and void. It asked the company to sign a new MoU. Later, when the family claimed that the disputes had been settled, the state government still insisted on a new agreement. The company claims that it has invested Rs 25,000 crore and is providing employment to at least 8,000 people. The company claims to have paid Rs 2,000 crore to the Centre and the state as taxes. The matter is listed for hearing on January 21, 2013.