By Our Correspondent
BHUBANESWAR: Amid allegations raised by BJP Lok Sabha MP Aparajita Sarangi, the Naveen Patnaik led Odisha Government in a letter to the Ministry of Coal and Mines has admitted that leaseholders reported high-grade iron ore as low-grade after extraction.
The State Government in a letter to the Ministry of Coal and Mines has admitted that leaseholders reported high-grade iron ore as low-grade after extraction.
Showing a letter she has received from Union Coal and Mines Minister Pralhad Joshi in this regard, the Bbhubaneswar BJP MP and Party’s National Spokesperson, Aparajiat Sarangi, said the State Government has constituted a committee under the chairmanship of the Director of Mines to investigate the irregularities. The State Government should also specify the magnitude of revenue loss due to reporting of high-grade iron ore as low-grade, she added.
Sarangi alleged that the State Government has already acknowledged occurrence of large-scale irregularities that led to the loss of thousands of crores of rupees to the exchequer.
The MP had earlier alleged about irregularities in 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. Sarangi, had already raised the matter in Lok Sabha
Though the State has informed the Centre that it has formed a panel to look into the issue, it has not mentioned what kind of preventive measures have been taken to improve the situation and what recommendations have been made by the committee, said Sarangi.
Meanwhile, AH Ramtake, Director, Mining and Mineral Statistics Division of Nagpur based Indian Bureau Mines, in a letter dated August 11, 2022, had written to the Joint Secretary, Ministry of Mines regarding under reporting of ex-mine price (EMP) and grade of Iron -Ore. The IBM missive to Mines Ministry came following such cases found in Odisha and Karnataka but 5 months have been passed so far, no action taken against the new lease holders.
IBM analysis shows that there is a drastic change in grade wise reporting pattern of the production and dispatches by some of the lease holders especially auctioned mines in Odisha and more so after incorporating lower grade in the monthly return format in the portal. IBM also found that there is also a reduction in EMP reported by the lease holders particularly for lower grade, less than 55% particularly after inclusion of lower grades in the return portal.
IBM further said “since April 2022, lease holders are submitting thier statutory monthly returns in form F-1 as per the format prescribed in MCDR-2017 amended up to April 2022. Based on the past months data, it has been observed that some of the lease holders that are reporting more production and dispatch in the grades less than 55% at very low ex-mines price. Therefore , a comparative analysis has been done for the 1st quater of FY-2022-23 grade wise dispatches and emp with the last quater of FY-2021-22 and FY-2020-21 and FY-2019-20 for the leases that are reporting grade wise production and dispatches less that 55% in Odisha.
‘This may be probably due to some malpractices adopted by the lessees showing higher quantities in lower grade and to reduce the ASP published by IMB and thus reduce the payments like premium, royalty, DMF, and NMET to be made to the State Governments which are directly linked to ASP. Therefore, it is necessary that the State Government officials do proper sampling of ore to be dispatched to ensure proper computation of ex-mines price in the invoices for preventing loss of revenue due to false declaration of grades with low ex-mines prices,’ the IBM letter to Mines Ministry said.
The IBM said “ As per section 23C of the Mines and Minerals (Development and Regulations) Act -1957, State Governments have been empowered to make rules for preventing illegal mining, transportation and shortage of minerals and for the purposes connected therewith , so concerned State Governments may be asked to develop and follow SOP for preventing loss of revenue due to declaration of higher grade as lower grade with lower ex-mines price . Further, if the State Governments request the agency proposed by the State Government may be allowed to carry forward the investigation for obtaining information on available grades of iron ore leases,”.
Official sources said, as per Rule 45 of MCDR -2017 , lease holders are required to submit statutory monthly and annual returns to IBM online. The MCDR Act-1957 was amended in 2015 and the concept of Average Sale Price(ASP) for major minerals has been introduced. Accordingly, IBM in accordance with the Rule-42(3) and 43 of Mineral Concession Rules-2016 regularly compiles and publishes ASP of minerals for each month on the basis of online monthly returns submitted by the mine owners. .
