Bhubaneswar, Aug 14 (IANS): The authorities Wednesday halted production at a coal-based power plant of Bhushan Steel Limited (BSL) in Odisha over pollution concerns.

Bhushan Energy Ltd, promoted by BSL, was operating a 300-MW power plant at Narendrapur in Dhenkanal district, about 150 km from state capital Bhubaneswar, without the necessary approvals from the State Pollution Control Board (SPCB).

The district administration had launched an investigation after local residents complained the company was dumping fly ash outside the plant premises and discharging untreated effluent into a nearby nullah (drain), District Collector Rupa Rosan Sahoo told IANS.

"We had also asked SPCB to carry out an investigation and take appropriate action," she said.

The SPCB Monday issued a closure notice to the plant after it observed non-compliance of many conditions. According to a senior SPCB official, the company had been served show-cause notices a number of times over the past two years.

Despite been given sufficient opportunity to control air, water pollution and for scientific disposal or utilisation of ash, the board observed persistent non-compliances, he said.

The power plant supplies power to BSL's three million-tonne steel plant located nearby which manufactures pig iron, billets, slabs and hot-rolled steel coil.

"The power plant shutdown will definitely affect production at the steel plant," Sahoo said. A senior company official declined to comment.