Massive Scam in Jajanga-Ganua – Roida-II- Gorumahisani- Badampahad-Jaribahal Iron Ore Blocks after Mining Auction, alleges BJP MP Aparajita Sarangi

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    BJP Bhubaneswar Lok Sabha MP and National Spokesperson, Aparajita Sarangi

    By Our Correspondent

    BHUBANESWAR: BJP Bhubaneswar Lok Sabha MP and National Spokesperson, Aparajita Sarangi on Monday 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.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.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.

    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.

    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.

    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 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.

    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.

    “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.

    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.

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