By Our Correspondent
BHUBANESWAR: If Tata Group Pays 141.25 Percent for Gandalpada Iron Ore Virgin Block , then it can pay at least the same amount, if not more, for the working mines under their operation.
Gadalpada has attracted a premium of 141.25%, which raises a question of fairness. Gandalpada is a virgin mine which can be operated only after obtaining forest and environment clearances. The Tata Steel has been enjoying 5 iron leases in Odisha for almost 100 years holding more than 49 sqkm. The State Government extended these leases in 2015 free of cost, i.e., no premium would be paid by the company for 15 years.
Assuming that the company pays 140% of premium and average IBM price at Rs 5,000/tonne for a combined mining capacity of 40 MTPA of five mines, the State exchequer is losing a premium of Rs 28,000 crore annually (40 MT x Rs. 5,000/t x 100%). In 15 years, the total loss to Government’s exchequer is Rs 4,20,000 crore. The State Government must consider imposing the premium on the captive mines which were granted extension as per the MMDR (Amendment) Act, 2015.
