By Our Correspondent
BHUBANESWAR: BJP Bhubaneswar Lok Sabha MP and National Spokesperson, Aparajita Sarangi on Monday , exposed the mining manipulations being carried by Sajjan Jindal led JSW Steel in Odisha.She alleged that the state government deliberately downgraded the quality of iron ore being produced in some auctioned mines.
The BJP MP claimed that the share of low-grade iron ore in 2019-2020 was 23 per cent of ores which increased to 95 per cent in 2021-2022. As the export of minerals was done by reflecting them as low grade to avoid export duty, the state became a big loser, she said.
In 2019-2020, during the pre-auction period, the proportion of low-grade ore in a mine used to be substantially lower. However, after the auction the new miners working in the same mines started showing a disproportionately higher volume of low-grade ore, Aparajita said.
“The modus operandi is simple. High grade iron ore in the 62-65 per cent Fe category is shown as low grade ore (below 58 per cent Fe) to depress the average sale price (ASP) determined by Indian Bureau of Mines and higher volume of ore is exported claiming exemption of export duty,” the MP said.
MP Sarangi, while citing 2 mines block of JSW Steel including Jajanga Iron Ore Mines and Ganua Iron Ore Mines , has alleged about massive scam and sought strong action the company. The MP said, minerals of these blocks were good before auction and after auction; it has now turned out to be bad quality Iron Ore due to Odiaha Government and Private Mines owners fixing.
The State government is losing Rs 6,199 per tonne of lumps of 65 per cent and above grade if it is shown at below 55 per cent Fe. In case of fines, the loss is Rs 3,550 a ton. Citing examples of Gonua iron ore block, Sarangi said 94 per cent of ore mined from the block in 2019-20 was 62 to 65 pc Fe grade. Post auction of the block (before its lease expired by March 2020), the share of lumps in the overall production fell from 37 pc to nil in 2021-22 and 62-65 pc Fe grade declined from 94 pc to 9 pc. This means the entire production was shown as low grade ore (fine) of 47 pc Fe, she said. Iron ore production from the mine jumped from 6.7 lakh tonne in 2019-2020 to 11.7 lakh tonne in 2021-22.
Massive corruption and loss to the State exchequer to the tune of thousands of crores due to the collusion between Odisha Government and private miners in the newly auctioned mines, the BJP MP alleged. Corruption arising out of the unusual increase in the volume of export of low grade Iron ore from Odisha and no value addition, MP said. She also alleged that underutilization and non-transparency pertaining to DMF lying with the district administration.MP Sarangi said, from 2019-20 to 2021-22, Rs 9274 Crore mining revenue collected while Rs 5737 Crore have been spent for various purposes. Where is rest Rs 3537 Crore, is lying , she asked.
“୧୯୫୭ର ଧାରା ୮କ(୬) ଅନୁଯାୟୀ କେନ୍ଦ୍ର ସରକାର ଏ ବିଷୟରେ ରାଜ୍ୟ ସରକାରଙ୍କୁ ଜଣାଇଛନ୍ତି। ୩୧ ମାର୍ଚ୍ଚ ୨୦୨୦ରେ ୨୦ଟି ଘରୋଇ ଖଣିକୁ ନିଲାମ କରାଯାଇଥିଲା। ୯୧%-୧୫୪% ASP(ଆଭରେଜ ସେଲ ପ୍ରାଇସ)ରେ ଏହି ୨୦ ମୁଖ୍ୟ ମାଇନ୍ସର ନିଲାମ ହୋଇଛି। ୨୦୨୧-୨୨ରେ ହଠାତ ଉଚ୍ଚମାନର ଆଇରନ କମିଯାଇ ନିମ୍ନମାନର ହୋଇଗଲା। ଏହି ଅନିୟମିତତା ପାଇଁ ଉଚ୍ଚମାନର ଆଇରନ ଓର କମିବାରୁ ଏକ ଲକ୍ଷ ଟନ ପିଛା ୪୧ କୋଟିର କ୍ଷତି ହୋଇଛି। ଫଳରେ ରାଜ୍ୟ ସରକାରଙ୍କୁ ଯାଉଥିବା ରେଭେନ୍ୟୁ କମିଗଲା। ଯାହା ଲୋକଙ୍କ କାମରେ ଆସିଥାନ୍ତା ଆଜି ତାହା କିଛି ଲୋକଙ୍କୁ ପକେଟରେ ରହିଗଲା।,” MP Sarangi said.
It may be noted here that JSW Steel had bagged Ganua iron ore block in Odisha’s Sundargarh district by committing to pay 132 per cent of its sale value to the Odisha government while the Sajjan Jindal led firm also, had also quoted 110 % and declared as preferred bidder for the Jajanga Iron Ore Mines Block and the State Government had granted mining lease with letter no 3007/SM, dated 18.03.2020. The Mumbai-based steel company had also bagged two mines — Nuagaon and Narayanposhi — with a total reserve of 980 million tonnes.
The Joda Joint Director of Mines, in State’s Keonjhar district had served notice bearing no 4833 dated August 13, 2021, to Jajanga Iron Ore Block of JSW Steel Ltd citing demand on shortfall in despatch vis a vis the minimum dispatch required under Sub-Rule -1 of 12(A) of (Other than Atomic and Hydrocarbon Energy Mineral) concession Rules, 2016 in respect of Jajanga Iron Ore Block.
Mines firms are deliberately violating Rule 12-A of the Mineral Concession Rules. The new lessee is required to maintain such level of production so as to ensure minimum dispatch of 80% of the average of the annual production of two immediately preceding years on pro-rata basis, failing which appropriate actions in accordance with respective MDPAs shall be initiated as prescribed under rule 12A(1) of the Mineral Concession Amendment Rules 2020. “A rough calculation of losses in these blocks would be around Rs 2000 crore to Rs 3000 crore and the Government should impose penalty on these auctioned mines for their failure to maintain minimum dispatch,” sources said.
The JSW had violated Rule 12A(1) of MCR, 2016 read with Schedule D of MDPA in ensuring minimum 80% dispatch of the average of the annual production of two immediately preceding years on pro-rata basis from the auctioned mines, which resulted Rs 1,154.68 crore loss to Odisha.
The BJP MP alleged that the Naveen Patnaik led Government in Odisha , is dancing to the tune of private mines owners in the State and allowing them to loot State’s mineral resources.
Due to State Government’s poor supervision, Private Mine’s owners are now showing good quality mineral as poor quality iron ore to escape from tax payment. Private mines owners deliberately degrading quality of Iron Ore to escape for tax payment and as a result of which, losses have been reported in mining royalty, DMF and other sectors, MP Sarangi said.
Addressing a press meet, the MP Sarangi cited several mines block, in which irregularities have been reported after auction held in March 2020. She said large scale irregularities reported in mines block like Gorumahisani Iron Ore Mines, Badampahad Iron Ore Mines, Jaribahal Iron Ore Mines , Roida-II Mines block., Jajanga Iron Ore Mines and Ganua Iron Ore Mines. The MP cited 6 blocks of the 20 auctioned 2 years back.
The MP citing Justice MB Shah Commission report alleged that the State Government is knowingly allowing private mines owners to loot mineral resources. Justice Shah Commission reported about Rs 60,000 Crore scam, the MP said adding the State Government did not take any action against these illegal mines owners.
IBM generally fixed rates of various mineral resources and which is changeable but Odisha losing around Rs 41.46 Crore per 1 Million Tonnes of minerals due to manipulations by private mines owners. Odisha is losing around Rs 1500 Crore for such illegal mining in every month. Since auction of 20 mineral blocks, such illegal activities have been going on in Keonjhar and Sundargarh. MP said before auction, mineral grade of these blocks were high quality and after auction, within 1 year, mineral quality shown as poor quality.
