By Our Correspondent
BHUBANESWAR/JODA/KOIRA: Is purpose of Mining Auctions under new laws achieved in mineral rich Odisha? Is Odisha knowingly losing revenue, employment and growth? Is high premium mining auction turning nightmarish? These are few questions are now being raised after only 5 of the total 24 mines, that were, lapsed by March 31 this year, and auctioned, started production while rest keeping silence resulting huge lose to State exchequer.
In 2016, the State Government had auctioned Sagasahi Iron Ore Block, which was bagged by EASSR Steel and later in 2017, the Government had auctioned Netrabandha and Kolmo Iron Ore block that were bagged by Bhushan Group , all 3 were virgin blocks, production of which is yet to started even after 5 years.
In recent 24 auctioned Mines blocks under Joda-Koira-Rairangpur and Sukinda circles under Keonjhar,Sundargarh, Mayurbhanj and Jajpur , operations , only 5 have so far started operations while rest keeping quite. Jajang, Nuagaon, Narayanposhi, Ganua iron ore mines of the JSW Steel Limited, Thakurani iron ore mine of M/s Arcelor Mittal have started operations but others yet to resume operations.In total, 27 auctioned mines with 5 only operational making revenue and employment loss, shortage of materials affecting medium and small scale industries and hitting export and imports of minerals in Odisha, sources said adding royalty, DMF and NMET also.
“Non operational of auctioned mines resulted hike in iron ore and steel prices small and medium scale industries,” a Mines owner said. “New lease holder should have achieved 80% production of last 2 years production but JSW Steel and AMNS Steel have failed to achieve it,” he added. Balda iron ore mine of the Serajjudin Company also not started operations even though the firm had already announced to resume mining work.
Jindal Steel and Power Limited, which had got Guali Iron Ore block, earlier held by RP Sao and Sons , also likely to not start operations citing various technical reasons like boundary issues and low quality iron ore while State Government has reportedly asked State owned OMC to look into Guali Block. Similar situation in neighbouring Jharkhand, where 5 to 6 auctioned blocks have not yet start operations, sources said. Goa based Fomento moved High Court against changes in auction rule while Vishal LPG and Tarama Apartment , have yet to submit affront amount to get vesting order.
Meanwhile, the Government is considering to increase of the permissible iron ore stack size from 4,000 tonnes to 20, 000 -25,000 tonnes, nearly six times of the present stack norms. The State Government seems want to streamline dispatch movements of minerals. With mining operations yet to come to normalcy under Joda-Koira-Sukinda circles, thousands of truck and tipper owners, locals labour forces, small traders and others depending on it, facing tough time, sources added.
Few days back, Union Minister of Steel and Petroleum and Natural Gas Dharmendra Pradhan had held a meeting with Chief Minister of Odisha Naveen Patnaik and Union Minister of Mines, Coal and Parliament Affairs Pralhad Joshi on operationalisation of the auctioned iron ore mines in Odisha where production and dispatch has still not commenced.
Ministry of Mines shall ensure so seamless availability of raw material to the end user is ensured. Operational of mines would result in reducing the price of iron ore which has gone up substantially in the last one month due to adverse market sentiments.As against a production of 123.8MT iron ore in Odisha from Jan 2019 to Nov 2019, total production in the same period in current year has been only 98.2MT. Out of the recently auctioned 24 mines in Odisha, only 5 have been able to start production and dispatch till date. This is the main reason for shortfall in iron ore supply in the country.
Mentioning shortages of ore and resultant high price posing challenge for Sponge Iron plants, Small & Medium size Steel plants, Chief Minister had Patnaik suggested State and Central PSUs can play a very important role in maintaining level of supply of ore to end user industries at critical moments. Chief Minister Patnaik had also proposed reservation of some expired working mineral blocks under provisions of Sec 17A of MMDR Act to State PSUs like OMC to ensure uninterrupted supply of ore to end-user industry. Citing pending revision of minerals & coal royalty, CM requested for early action.
