By Our Correspondent
BHUBANESWAR: 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.
BJP MP from Bhubaneswar and Party’s National Spokesperson, Aparajita Sarangi, has already raised the matter in Lok Sabha. 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.
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 were among those mines in Odisha have been under scanner in this connection.
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. .
