By Our Correspondent
BHUBANESWAR/KOIRA/JODA: Is Odisha Steel and Mines Department Playing Double Standard? Is Odisha Director of Mines opting double yardstick in dealing with violation of MCDR 1988 and the provision of Rule 10 (5) of OMPTS Rules 2007 under Joda-Koira Mining Circles? . Is Odisha Government knowingly favouring Sajjan Jindal led JSW Steel? These are few questions now debated at large in Odisha’s mining zone of Keonjhar and Sundargarh after Odisha Government suspended mining operations of 3 mining firms.
Backed by a letter of BK Sahoo, Under Secretary to Government (Steel and Mines Department),bearing no-10941/SM dated 16.12.2020 (IV(A)SM-31-2020, to Director of Mines,Odisha Government has suspended the mining operation of Murgabeda Iron Ore Mines of DR Pattanaik over 15.378 hectares (ha), Jaribahal Mine of Kashvi International over 107.440 ha and Deojhar Mines of Tarini Minerals over 34.365 ha under Champua Sub Division of Keonjhar district for violation of MCDR 1988 and the provision of Rule 10 (5) of OMPTS Rules 2007 but same yardstick not being followed in case of JSW Steel, owned by Sajjan Jindal.
When many lessees who were not maintaining proper stacks for sampling were show-caused and their operations closed, the JSW mines even after continued violations are operational.The iron ore mines blocks of these above mentioned mines companies have been closed and they were sent show cause for not maintaining stacking and or suppressing the grades but the JSW mines even after repeated violations still continue to operate.
Nuagaon Mines block of JSW Steel has been served notice to collect crores of additional stamp duty as differential stamp duty and differential registration fee due to enhancement of production as per approved mining plan in respect of Nuagaon mine of JSW but hectic lobbies are going on to reduce the stamp duty rates.
BK Sahoo, Under Secretary to Government (Steel and Mines Department), in a letter no-10941/SM dated 16.12.2020 (IV(A)SM-31-2020, to Director of Mines, has sought action against DR Patnaik Mines, Kashvi International Pvt Ltd and Tarini Mineral Pvt Ltd over violation of MCDR-1988-Rule 10(5) of OMPTS-2007, sources said on Thursday.
The Steel and Mines Department Letter had mentioned that it has been found that violation of MCDR 1988 and the provisions of Rule-10(5) of OMPTS Rules -2007 in respect of Murgabeda Iron Ore mines of DR Patnaik over 15.378 hects under Champua Sub-Division, Jaribahal Iron Ore block of Kashvi International Pvt Ltd over 107.440 hects under the same location and Deojhar Iron Ore block of Tarini Minerals Pvt Ltd over 34.365 hects under same location of mineral rich Keonjhar district of the State.
Citing memo no-9099/DM dated 15.12.2020, the letter said ” In inviting references to the correspondence on the subject cited above, I am directed to request to kindly suspend the mining operation with immediate effect till completion of verification, rectification irrespective of Murgabeda Iron Ore mines of DR Patnaik over 15.378 hectors under Champua Sub-Division, Jaribahal Iron Ore block of Kashvi International Pvt Ltd over 107.440 hectors under the same location and Deojhar Iron Ore block of Tarini Minerals Pvt Ltd over 34.365 hectors under same location of mineral rich Keonjhar district of the State,”.
Recently, lower floor prices of range of Rs 2,400- 2,500/tonne of iron ore lots under Auction Notice of JSW Steel vis a vis higher prevailing market prices hovering at Rs 8,400/tonne for lumps and Rs6,000/tonne for fines was about led to loss of revenue of over Rs 203 crore in a single auction alone but after severe criticism, the JSW had withdrawn its auction notice. The JSW Steel won 4 big size iron ore and manganese blocks with combined capacity of 29 MTPA which is presently 59% of the total auctioned mines operating in the State. These mines have dispatched only 23% of minimum dispatch requirement of 13.35 million ton in this financial year on pro-rata basis.
Months back, Director of Mines had served show cause notice to JSW Steel. In its show-cause notice to JSW Steel, the Director Mines mentioned that, in Narayanposh iron ore mine, the JSW has dispatched only 2,45,829.58 MT iron ore which is 4,81,853 MT iron ore and 388. 47MT Manganese ore short of the prescribed target of dispatch and, thus, JSW violated Rule 12A(1) of MCR read with Para 8.1and schedule “D” of the MDPA.
In Ganua block, the JSW has dispatched only 34,683.17 MT which is 78,419 .83 MTs short of the prescribed target of dispatch. In case of Nuagaon block , the company dispatched only 2,56,718.98 MT which is 7,53,081 .02 MT short of the prescribed target of dispatch In Jajang block, it dispatched 3,07,173.48 MT which is 17,70,736 .08 MT short of the prescribed target of dispatch. Thus till September 21, the JSW Ltd’ total dispatch shortfall was 30, 84,090.91 MT. Calculating at conservative prices 62-65%Fe grade iron ore at Rs 3,286 per tonne for lumps. The officials of Directorate of Mines recently conducted spot visits of Jajang, Nuagaon, Ganua and Narayanposhi iron ore mines of JSW.
The JSW had violated Rule 12A(1) of MCR, 2016 read with Schedule D of MDPA in ensuring minimum 80% dispatch of the average of the annual production of two immediately preceding years on pro-rata basis from the auctioned mines, which resulted Rs 1,154.68 crore loss to Odisha.
Till September, the JSW failed to dispatch 30, 84,090.91 MT iron ore as per agreement for which the Government lost huge amount of revenue. The Mines Director slapped show cause notice to the JSW for violation of the MCR rule. The Director earlier had written to the JSW to take steps to ensure strict adherence to the above mentioned provision and maintain the prescribed production and dispatch; otherwise it would be liable for action in accordance with the rules.
