By Our Correspondent
BHUBANESWAR: If claims of BJP MP and National Spokesperson, Aparajita Sarangi is true, then why Mines Ministry and IBM Silent on Odisha’s Illegal Mining Operations. Centre has drawn the attention of the State government to these gross irregularities, MP Sarangi had said. 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.
Meanwhile, Odisha’s Steel and Mines Minister Prafulla Kumar Mallick, has, rejected the allegations made by BJP Bhubaneswar Lok Sabha MP Aparajita Sarangi on mining issues.
Minister Mallick claimed that the Centre has lauded Odisha’s mines management and Odisha earned the highest among all states as mining revenue. The state has earned Rs 50,000 crore as mining revenue. “If the MP has any doubt, she should either contact the Mines Ministry or the Prime Minister for clarification.” the Minister said
Citing examples of Gonua iron ore block held by Sajjan Jindal’s JSW Steel, BJP MP 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.
Similar is the case with Gorumahisani Mines, owned by Kolkata based M/s Ghanshyam Mishra & Sons and run by Jagadish Mishra where high grade iron ore used to be 28 pc of production fell to just 2 per cent from 2019-20 to 2021-22. With other blocks at Badampahar block of M/s Lal Traders & Agencies (P) Ltd, Jaribahal block of Kashvi International Private Ltd, Roida II of Narbheram Steel & Power (p) Ltd and Jajang block of JSW Steel, which were part of the 20 blocks auctioned before March 2020 as per the revised MMDR Act, 2015, trend is similar, she alleged.
Take look at 2 mines of the State-owned Odisha Mining Corporation (OMC), the case is precisely opposite. The lumpy ore production increased 24 pc to 39 pc and the 60-65 per cent Fe ore output increased from 87 pc to 96 pc during the same period. The PSU brought down the below 58 per cent Fe ore which fetches lower price from 8 pc to 4 PC. Curiously, export of low-grade iron ore (below 58 pc Fe) from the State witnessed a significant jump form 8.61 lakh tonne in 2018-19 to 146.58 lakh tonne in 2019-20 and 238 lakh tonne in 2020-21.
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. The total loss incurred by the State would run into thousands of crore.
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. 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.
