Industry slams Orissa govt’s R57,907-cr mining bill

  • 03/11/2012

  • Financial Express (New Delhi)

Bhubaneswar The Orissa government’s decision to recover Rs 57,907 crore from 27 mining lessees for extracting minerals in excess of the approved plan has upset the state mining sector. Many in the mining industry and experts have expressed their surprise over the state government’s action. “The decision is illegal,” said Ashok Parija, former president of Bar Council of India. Parija said the extraction of minerals in excess of mining plan is not illegal, terming the notice served under Section 21(5) of the MMDR Act 1957 and fines imposed as not correct. “The act may be violation of the Mineral Conservation and Development and Regulation Act(MCDR Act) 1988, but it is not attracting the provisions of the Section 21(5) of the MMDR Act. So, the government can not impose fine under the Section 21(5) of the MMDR Act for extraction of minerals in excess of approved mining plan,” Parija said. Stating that the illegal mining activities has been already clarified by the government and also the Calcutta high court, Parija said that mining minerals without valid lease and mining activities outside the leased area is construed to be illegal mining activities. The state government has slapped notices on 27 mining lessees such as TISCO(R32,815 crore), Essel Mining(R4,308crore), RP Sao(R3,877 crore) Sarada Mines(R2,845crore), KJS Ahulwalia (R2,022 crore), Mesco (R2,221 crore), Rungta Minerals (R1,599 crore), ,Sirajuddin Mines (R1,983 crore), Indrani Patnaik(R604 crore), Kalinga Mining Corporation (R406 crore) , KN Ram (R646 crore), Mala Roy(R883 crore), besides two government companies Orissa Mining Corporation (OMC) and the Steel Authority of India(SAIL). The government has asked them to pay the market value of the minerals extracted during the last 10 years in excess of the approved plan along with 24% simple interest. “There is no illegalities in this case,”said Prabhakar Rout, the chairman of the mining expert committee of Utkal Chamber of Commerce and Industries (UCCI), an apex body of trade and industries of Orissa. Quoting a letter written by mines secretary Bishwapati Trivedi to the Orissa chief secretary BK Patnaik on September 5, Rout said that the government has already defined what is illegal so far as the MMDR Act 1957. “Regarding the violation of the approved mining plan, the state government has no authority to take action against the erring lease. It is the government which is supposed to initiate action. Similarly, in case of violation of environment clearance, it is the ministry of environment and forest, state forest department and the district collector who would initiate action. The state pollution control board is the appropriate authority to take action for any violation of the Consent to Operate (CtO) license given by it. The state steel & mines department has no authority to initiate action for mining in excess of the approved mining plan,” said Parija. “No mining company is going to comply with the notice,” said a senior executive of a major mining company. According to him, the government’s decision would not stand in the court of law. “We would certainly go to court to challenge this notice”, he added.