Odisha to move High Court in excess mining case

  • 23/12/2013

  • Business Standard (New Delhi)

The RA had imposed stay order in case of four miners -PTA Ltd, Essel Mining, GSI Ltd and Ferro Alloya Corporation (FACOR) Mine owners and the Odisha government are poised for a pitched battle over the contentious issue of a hefty penalty imposed on extracting ore beyond the approved limits. After the mine lessees filed cases in the revision authority (RA) under Union mines ministry, challenging the demand notices on excess mining, the state government is readying to contest the orders of RA in the Odisha High Court (HC). "The steel & mines department has taken an in-principle decision to move the HC against the orders passed by RA. There are a few cases where the RA has passed orders staying our notices for recovering cost of excess ore raised by the miners. Some 40-odd mine owners had challenged our penalty notices in the RA", said an official source. The RA had imposed stay order in case of four miners -PTA Ltd, Essel Mining, GSI Ltd and Ferro Alloya Corporation (FACOR). The state steel & mines department had imposed a total penalty of Rs 65492.73 crore on 104 errant lessees found guilty of extracting excess ore during 2001-10. The penalty was imposed on miners like Essel Mining, Tata Steel, Mid-East Integrated Steel Ltd, Indrani Patnaik, Rungta Mines and Serajuddin & Company to name a few. Out of 104 lessees, 44 had operating mines in the Joda circle. Though more than a year has elapsed since the issue of the penalty notices, the department is yet to collect even a single penny as the matter is locked up in litigations.These miners had raised minerals beyond their prescribed limit specified in the mining plan approved by (IBM) during 2006 to 2010. The government had invoked Section 21 (5) of Mines and Minerals (Development & Regulation) MMDR Act-1957 for recovering cost of production. But the penalty demand on excess ore production was termed 'unjustified' by the Society for Geoscientists & Allied Technologists (SGAT), a body dedicated to promotion of mineral development. "As such demand raised on the lessees to pay the price of ore raised in excess of quantity approved in the mining plan, environment clearance and consent letter retrospectively is totally unjustified, more so when permission had been accorded for despatch of such ores from the lease areas and royalty collected", SGAT had stated in a note to the M B Shah Commission. The commission submitted its report to the Union government on illegal mining in Odisha. The state government, however, justified its belated action imposing fines on defaulted miners, citing that the Indian Bureau of Mines (IBM) failed to initiate any action against the erring mine owners despite repeated reminders.