By Anurjay Dhal
BHUBANESWAR: Call it end of monopoly by few Industrial and Mining Establishments in Odisha. With both Houses of Parliament, Lok Sabha and Rajya Sabha passing the Mineral Laws (Amendment) Bill, 2020, illegal Mine Owners in both Iron Ore Manganese and Coal sector will spend sleepless nights in Odisha’s mineral rich Keonjhar, Sundargarh and Mayurbhanj and Coal rich Dhenkanal-Angul, Sambalpur-Jharsuguda-Sundargarh belt.
In Odisha, Tatas, Birlas, Patnaiks, Rungtas, Serrajuddin, Ahluwalia Group, Jindals, RP-Sao-TP Saos, looted minerals worth crores of rupees and facing penalities for illegal mining and their role in Odisha Mining Scam. Now JSW, Arcellor-Mittal, Serrajuddin and few more will call the cards with several big mines in their hands.
On March 12, Parliament passed the Mineral Laws (Amendment) Bill, 2020 for amendments in Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act, 2015. Rajya Sabha passed the bill on March 12 while Lok Sabha already passed this bill on March 6, 2020.
The Mineral Laws (Amendment) Bill, 2020, will open a new era in Indian coal & mining sector specially to promote Ease of Doing Business. Union Coal & Mines Minister Pralhad Joshi said that this Bill will transform the mining sector in the country boosting coal production and reducing dependence on imports.
The amended provisions clearly provide that companies which do not possess any prior coal mining experience in India and/or have mining experience in other minerals or in other countries can participate in auction of coal/lignite blocks. This will not only increase participation in coal/lignite block auctions, but also facilitate the implementation of FDI policy in the coal sector.
Now, the companies which are not ‘engaged in specified end-use’ can also participate in auctions of Schedule II and III coal mines. The removal of the end use restriction would allow wider participation in auction of coal mines for a variety of purposes such as own consumption, sale or for any other purpose, as may be specified by the Central Government.
The Bill also allows prospecting licence-cum-mining lease (PL-cum-ML) for coal/lignite which increases the availability of coal & lignite blocks, and coal blocks of varying grades in a wide geographical distribution will be available for allocation.
The successful bidders/allottees have now been entitled to utilize mined coal in any of its plants or plants of its subsidiary or holding company. Amendments also provide for allocation of the coal mine to the next successful bidder or allottee, subsequent to termination of its allocation along with the matters incidental to it. A provision has also been made for appointment of designated custodian for management of the mines, apart from Schedule II mines, which have come under production and whose vesting/ allotment order has been cancelled.
With the amendments, environment and forest clearances along with other approvals and clearances shall automatically get transferred to the new owners of mineral blocks for a period of two years from the date of grant of new lease. This will allow new owners to continue with hassle free mining operations. During the period, they may apply for the fresh licence beyond the period of two years.
The auction of lease of mines can now be started before expiry of lease period. It will enable the state government to take advance action for auction of mineral blocks so that the new lease holder could be decided before the existing lease gets expired. This will help in seamless production of minerals in the country.
The new provisions will also augment the exploration of the deep seated minerals and minerals of national interest by allowing Non Exclusive Reconnaissance Permit (NERP) holders to apply for composite licence or Mining Lease (PL-cum-ML).Various repetitive and redundant provisions of MMDR Act and CMSP Act have also been omitted for Ease of Doing Business.
The Bill replaces the ordinance for amendment of the MMDR Act 1957 and CMSP Act which was promulgated on 11th January 2020.
Meanwhile, BJP Rajya Sabha MP from Odisha and former State cadre IAS officer Ashwini Vaishnaw while participating in a debate on MMDR Act 2015-Mineral Laws (Amendment) Bill-2020 in the Upper House of Parliament said Odisha will largely benefited due to the new laws.
The bureaucrat turned Rajya Sabha MP from Odisha, where 20 mines auctioned recently, whose term of lease expiring by March 31, 2020, said the mineral rich eastern Indian State of Odisha
will get RS 4 Lakh Crore revenue from 20 auctioned Mines under Joda-Koira-Rairangpur till it expires because of MMDR Act 2015-Mineral Laws(Amendment) Bill-2020.
While thanking Prime Minister Narendra Modi and Union Mines Minister Prahallad Joshi, the former Private Secretary to late Ex PM Bharat Ratna AB Vajpayee Ji, said that around 2 lakhs people will get regular livelihood from these mines in Odisha, which is more important for economic liberalisation of poor and marginalised sections of mineral rich Joda-Koira-Rairangpur regions of State’s Keonjhar, Sundargarh and Mayurbhanj districts.
The former IAS officer said that the creation of District Mineral Funds under this Laws was a historic step by Narendra Modi led NDA Government and till date, Odisha keeps around Rs 10,000 crore in the Fund while around Rs 40,000 crore have been deposited in mineral rich States across the Country.
With PM Granite Exports Pvt Ltd bagging Kanther-Koira Manganese Block held by Rungta Mines Ltd by committing to pay premium at 110.04 to Odisha Government on February 17 this year, Odisha ended its auction.
. Due to Court case, auction for Badampahar block under Rairangpur circle in Mayurbhanj held by Lal Trade Agency Pvt Ltd, a group company of Ghanshyama Misra and Sons Pvt Ltd, which retained its Gorumahisani block put on hold. The Odisha Mining Auction which has started on January 31 was on Tuesday (February 17) ended with auction of Kanther-Koira Manganese Block.
Earlier, Agrasen Sponge Industries Pvt Ltd of Rajesh and Mahesh Dadhichi has bagged Katasahi manganese block on late Monday(February 16).The Company won the bid by committing to pay 130.30 per cent of the average sale price to the Odisha government. Rungta Sons Pvt Ltd was the current lease holder with an estimated reserve of 0.667 MT. Katasahi Manganese Mines block was the 17th of the 19th mines put for auction.
Earlier, Jagat Janani Pvt Ltd bagged the Jururi Iron Ore Block in Odisha on Monday (February 17). It was 16th of 19th mines put for auction. Earlier lease holder was Kalinga Mining Corporation.
Jagat Janani Pvt Ltd has bagged Jururi iron ore block held by Kalinga Mining Corporation by committing to pay 126.23 per cent of the average sale price to the Odisha government.Initially, 17 mining companies had bid for the iron ore block in Keonjhar district with an estimated reserve of 270 MT.
Earlier, Kolkata based Tarama Apartment Pvt Ltd, a Group Company of Gurukul Homes Pvt Ltd late on Saturday night (February 15)Bagged the Teherai Iron Ore Block in Odisha’s mineral rich Keonjhar-Sundargarh region. It was the 15th of the 19th mines put for auction. The company won the mines by committing to pay 93.06 per cent of the average sale price to the Odisha government. The Teherai mine has a reserve of 8.90 MT of iron ore and 0.055 MT manganese.
Surprising all, Kashvi International Pvt Ltd on Friday(February 14) bagged the Jaribahal iron ore block in the ongoing mining auction in Odisha. The iron ore mines was earlier with by Patnaik Minerals.Odisha’s Keonjhar-based company won the mines by committing to pay 150 per cent of the average sale price to the Odisha government, said an official.Spread over an area of 106.53 ha, Jaribahal iron ore block has an estimated iron ore reserve of 7.15 MT.
On Thursday(February 13), Odisha-based miner Debabrata Behera bagged Siljora-Kalimati iron ore and manganese block at 154%, the highest-quoted premium so far in the ongoing mining auction in the state.The lease of Siljora-Kalimati iron ore and manganese block was with ML Rungta.
Odisha-based miner Debabrata Behera bagged Siljora-Kalimati iron ore and manganese block at 154%, the highest-quoted premium so far in the ongoing mining auction in the State on Thursday(February 13).The lease of Siljora-Kalimati iron ore and manganese block was with ML Rungta.
The composite mine has an estimated reserve of 0.72 MT iron ore and 3.846 MT manganese. This is the 14th of 19 mines enlisted for auction in Odisha.
Yazdani International (P) Ltd had bagged Kalmong iron ore and manganese block at a premium of 100 per cent on Wednesday(February 12).On Tuesday(February 11), Vishal LPG Fuels Pvt Ltd bagged another composite mine, Nadidih iron ore and manganese mine in Sundargarh district.
Lessee Ghanashyam Misra and Sons Pvt Ltd Mishra & Sons Pvt Ltd on Tuesday (February 11) retained Gorumahisani iron ore block in Odisha auction at a premium of 115 per cent.
On Sunday (February 9), Goa-based mining form Sociedad De Fomento Industrial Pvt Ltd bagged Nadidih iron ore block by committing to pay the average sale of 141.25 per cent to the state government.
Patnaik Minerals Pvt Ltd bagged Mahulsukha iron ore and manganese mines in Odisha, which went under the hammer, at a premium of 92.70 per cent on Saturday (February 8).
On Friday (February 4), Kolkata-based Khatua Narbheram & Co. retained the Roida II iron ore mines at a premium of 90.90 per cent.
JSW has won four blocks – Nuagaon (January 31),Narayanposhi (February 2) and Ganua (February 5) and Jajang (January 6) – with total ore reserve of 1,138.34 million tonnes.
Shyam Ore bagged the Jilling-Langalota iron ore block in Odisha’s Keonjhar district by committing to pay 135 per cent of average sale price to the Odisha government on Wednesday (February 5).
On Tuesday (February 4), Serajuddin and Co retained Balda iron ore block during the auction that went past midnight (2.41 am). ArcelorMittal India Pvt Ltd had won Thakurani iron ore block notified for auction.
The premium offered by various Merchant Miners and Big Steel makers to bag to these mines blocks have raised many eyebrows as to how the new lease holders will manage it. It may be noted here that mining sector in Odisha was badly hit over the past 5 years due to a scam worth Rs 80,000 crore and several round of probes are going on but another Big Scam is in offing considering the high premium offered by bidders in ongoing mining bidding.
Sajjan Jindal led JSW Steel topping the list with 4 Big mines followed by Serajuddin and Co and its subsidiary Yazdani International, Kashiv International -Debabrata Behera, ArcellorMittal India Pvt Ltd, Shaym, Ore, Patnaik Minerals Pvt Ltd, KN Ram Mines Pvt Ltd, Sociedad De Fomento Industrial Pvt Ltd, Vishal LPG Fuels Pvt Ltd, Ghanshyam Mishra and Sons Pvt Ltd, Tarama Apartment Pvt Ltd, Agrasen Sponge Industries Ltd, Jagat Janani of Sanata Mahakud and PM Granite Exports Pvt Ltd have won blocks while big players like KJS Ahluwalia and Prasant Ahluwalia brothers, Essel Mining and Industries Ltd of Aditya Birla Group , the Chaibasa, Jharkhand headquarters, Rungta Mines Group, Patnaik Minerals, Kalinga Mining Corporation, RP Sao-TP Sao were among those isolated in the current bidding. Ahluwalia Brothers lost 3 of their major Blocks while RML Group lost almost half dozen running mines followed by couple of blocks of EMIL.
Rungta Mines Ltd Group till has 2 major Blocks under Sundargarh-Keonjhar circle , which has life span of more than 15 years while the Chaibasa based Merchant miner is eyeing on half dozen virgin mines out of 9, which will be put for auction soon. Ahluwalia Brothers read Prasant Ahluwalia and Kamaljit Singh Ahluwalia totally rooted out from Odisha’s mining zone while Aditya Birla’s Essel Mining and Industries knocks the door of the Supreme Court to defend its lease over Jilling-Langalota Block. The Supreme Court has put the lease transfer on hold till further order. Kolkata based Shyam Ore on had bagged the Jilling-Langalota iron ore block in Odisha’s Keonjhar district by committing to pay 135 per cent of sale to the Odisha government
Meanwhile, several activists in Bhubaneswar alleged about irregular, conspiracy-driven iron ore auctions as they argued that premiums crossing as high as 150% and more.“The current bidding has widened abundant scale for a massive Mining Scam and the Naveen Patnaik led BJD Government has to clarify about the aggressive bidding, which will promote mining scam,” said an activist.
“The aggressive biddings with an aim to loot the Odisha’s valuable iron ore are the reasult of a nexus between a few Industrial Houses, close to the power corridor, political leaders, bureaucrats and Mines Contractors,” said he. He also raised finger towards a nexus between Sajjan Jindal of JSW Steel and B Prabhakaran of Thriveni Earth Movers Pvt Ltd, the most talked about Mining Contractor.
The first block that was auctioned for Nuagaon mines of 792.93 MnT reserves was won by JSW Steel Ltd with 95.2 per cent bidding for the block. The second block was auctioned for Narayanaposhi mines with 190.6 MnT reserves and was also won by JSW Steel with its bid at 98.55 per cent. The JSW Steel bagged the 14th iron ore block in auction by committing to pay 110 per cent of the sale to the State Government for Jajang in Keonjhar district.
The Thakurani(reserves 180 MnT), fetched a premium at 107.55 per cent and was won by ArcelorMittal. The Balda iron ore (reserves 210.17 MnT) was retained by Serajuddin and Co. at a premium of 118.05 per cent. Shyam Ore even bagged the Jilling-Langalota iron ore block in Keonjhar district by committing to pay 135 per cent of sale to the Odisha Government. The Tata Steel, Steel Authority of India Limited and JSPL have not been bidding aggressively, sources said.
This premium is a percentage of the price of the iron ore that is set by the Indian Bureau of Mines each month for different States and grades. The premium will be taken by the State. So Serajuddin and Co. which owned at a premium of 118.05 per cent will pay 118.05 percent of the monthly value of the IBM set price of iron ore to the State Government. This will be on per tonne of iron ore sold by the company. Many small players like Shyam Ore, Debabrata Behera, Kashiv International and KN Ram will also pay high premium ranging from 100% to 150%.
Apart from the premium , the new owners will pay to the State Government a royalty of 15 percent of base price, DMF fund contribution 30 percent of royalty and National Mineral Exploration Trust of 2 per cent of royalty that will be charged separately on the base price. Premium and royalty will be charged on sales of iron ore, sources added.
The high premiums will lead to illegal mining, unethical market manipulation, rate fixing and other massive mines corruption. Since many of the large companies are emerging as the winners, they will become the new price makers in the market and the ultimate burden will pass to the consumers, they alleged.
They expressed grave concern over the manipulated system of iron ore mining business in the State, urged the Government to act immediately to ensure the interest of the State and the people was protected.
