Orissa government faces flak over illegal mining of iron ore

Much to the embarrassment of the ruling Biju Janata Dal, the Supreme Court-appointed Central Empowered Committee (CEC) has found that miners illegally extracted iron and manganese ore worth nearly Rs 17,576 crore in Orissa between 2001 and 2010.

The report, which was submitted to the apex court on Friday, recommended that at least 30 per cent of notional value or benchmark rate of iron and manganese ore extracted without statutory clearances should be recovered from the miners. The panel recommended penalties amounting to 70 per cent of the benchmark price for mine owners who carried out illegal mining in forest area.

Significantly, the CEC has directed the government to re-investigate allegations of violation of Rule-37 of Mineral Concession Rules, 1960 by the mine owners and take appropriate action. "If the parties fail to pay the amount within the prescribed time period of three months, then their operations will be suspended and thereafter should be determined," it said.

In cases of excess mining, the CEC has taken benchmark price issued by the Indian Bureau of Mines (IBM) stating that taking year wise price of different grades of iron and manganese ore is a 'cumbersome process'. "The total notional value of the minerals produced without or in excess of environmental clearance, at the weighted average price of minerals published by the IBM adds up to Rs 17,091 crore for iron and Rs 484.92 crore for manganese ore," it said.

The Committee also found that a total of 213 million tonne and 2.4 million tonne of iron and manganese ore were extracted without environmental clearance from 2001 to 2010 by 72 leaseholders in Orissa. The panel made it clear that the state government and its officials "cannot escape the responsibility for such brazen violations of Acts and Rules".

Coming in the wake of Justice M. B. Shah Commission report on illegal mining, the panel's recommendations are likely to embarrass the Naveen Patnaik government.