By Our Correspondent
BHUBANESWAR: Alleged dispatches of Low Grade Manganese from Odisha, Mines Ministry seeks action against Kashiv Group of Companies- Patnaik Minerals Pvt Ltd- Yazdani Steel -PM Granite Exports Pvt Ltd- Agrasen Sponge Industries Pvt Ltd.
IBM has informed Mines Ministry that it has been brought to their notice that some of mining lease holders of Manganese ore in Odisha , are dispatching Manganese ore allegedly as low grade from their mines located in Odisha to the traders operating from West Bengal who subsequently sell it as high grade ore without any processing. IBM has examined the matter and has prepared a report in respect of Siljora Kalimati Iron and Manganese Ore mine of Kashiv Group of Companies.
The Ministry has previously highlighted the under reporting of grades of iron ore vide letter of even number dated 31.08-2022 and under reporting of grades of chromite ore and manganese ore vide letter even number dated 11.11.2022. Through the said letters, it was requested to develop SOP for preventing loss of revenue prices due to declaration of higher grade as low grades with lower ex-mines prices and to ensure compliance of the Sops. Further it was requested that the possibility of investigation through authorised agency under section 18A of the act for obtaining information on available grades of ores in the lease may be explored.
Under reporting of grades of minerals is a series issue and causes loss to State exchequer by way of lower collection of various payments such as auction premium, royalty, DMF and NMET. This is especially true for auctioned mines where in a major portion of revenue accrues by way of auction premium.
As per section 23C of the MMDR Act , State Government are empowered to make rules for preventing illegal mining , transportation and storage of minerals . It is responsibility of the State Governments to establish the correct grade of materials being dispatched and charge auction premium , royalty and other payments on the correct grade of minerals.
In view of the above, it is requested that any nexus between traders and the lessee of Siljora Kalimati Iron and Manganese Ore mines, to deliberately show the lower price in the grab of low grade ore may be investigated and appropriate action may be taken as per law to prevent any possible loss of revenue to State exchequer.
Further IMB, vide its letter dated 27-09-2022 to this Ministry, has inter-alia highlighted under reporting of grades in auctioned manganese ore minerals in Odisha where in it was observed that in 4 of the 7 auctioned mines which were analysed , the share of low grade manganese ore had increased from 0% in FY-2019-20 to 65% to 100% in FY-2021-22. Therefore, other auctioned manganese mines where such drastic change in grade of manganese ore has been reported such as Kanther Koira of PM Granite Exports Pvt Ltd, Katasahi of Agrasen Sponge Industries Pvt Ltd, Kolmong of Yazdani Steel and Mahulsukha mines of Patnaik Minerals Pvt Ltd, may also be examined by the State Government. In view of the seriousness of the matter, it is requested that necessary action may be taken by the State Government in the matter earliest, Mines Ministry added.
