CPCB Shuts Down Shyam Metalics Odisha Units Over Severe Pollution Violations

SAMBALPUR/JHARSUGUDA (ODISHA): In a major crackdown on industrial pollution, the Central Pollution Control Board (CPCB) ordered the immediate closure of multiple key units at the Shyam Metalics and Energy Limited integrated plant in Rengali, located on the border of the Sambalpur and Jharsuguda industrial belt.

The enforcement action, which began in early April 2026, saw district officials and police personnel sealing 21 furnaces and several production lines following a history of environmental non-compliance.

The Violations: A “Potentially Hazardous” Environment

The CPCB’s directive (issued under Section 5 of the Environment Protection Act, 1986) followed a surprise inspection in mid-March 2026. The findings revealed a blatant disregard for environmental safeguards:

• Hazardous Air Quality: Particulate Matter (PM) emissions were recorded at 268 mg/Nm³, over five times the legal limit of 50 mg/Nm³.
• Wastewater Leakage: Despite claims of being a “Zero Liquid Discharge” (ZLD) facility, untreated industrial effluent was found bypassing the boundary walls and leaking into local water bodies.
• Toxic Waste Mismanagement: Over 50 drums of hazardous tarry residue and used oil were found stored in the open without proper labeling, covers, or impermeable flooring, posing a direct threat to groundwater.
• Unauthorized Operations: The plant was found to be operating a slag crushing unit and several emission stacks without valid government approvals.

The Cleanup: Units Sealed

On April 6 and 7, 2026, authorities physically entered the premises to halt operations at:

1. Seven Ferroalloy Furnaces
2. Two Steel Melting Shop (SMS) units
3. A massive Pellet Plant unit
4. Three TRL Kilns

“We have been serving notices for over two years. The closure was a last resort because no meaningful compliance was in sight,” stated Satyanarayan Nanda, Regional Officer of the State Pollution Control Board.

Latest Update: Conditional Relief (Mid-April 2026)

As of April 13, 2026, the company filed an appeal with the CPCB, outlining a rapid remedial plan. In a recent regulatory filing to the stock exchanges, Shyam Metalics clarified:

• Partial Reopening: The CPCB has granted temporary relief, allowing some units (including the Pellet and Ferroalloy plants) to resume operations under “Environmental Probation.”
• The 3-Month Deadline: The relief is strictly conditional. The company has been given 90 days to rectify all 17 categories of violations found.
• Strict Monitoring: If the plant fails any surprise follow-up inspections during this window, the closure order will be reinstated immediately without further notice.

Industry Impact

This incident has sent shockwaves through the Odisha industrial sector, signaling a shift toward zero-tolerance for pollution in the Sambalpur-Jharsuguda region. Local environmental activists have welcomed the move, noting that this is one of the largest industrial facilities in the state’s history to face such a severe enforcement action.