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Tata Steel, GMR in Odisha list for excess mining, face Rs 27,000 cr fine

State has prepared draft notices for extracting cost of excess production from coal and other non-ferrous mines like chromite, limestone and dolomite

Jayajit Dash  |  Bhubaneswar 

Photo: Shutterstock
Photo: Shutterstock

After iron and manganese mines, the non-ferrous mine in might be next in line to cough up for extracting beyond the approved limits.

government has prepared the draft notices for extracting the cost of excess from and other like chromite, and The notional value of over-by mines has been assessed at Rs 22,000 crore. For and other non-ferrous leases, the compensation figure is around Rs 5,000 crore, which means an additional of Rs 27,000 crore. The total compensation to be forked out by the mining companies could well go beyond Rs 50,000 crore, said an industry source.

In case of coal, India-subsidiary Mahanadi Coalfields Ltd (MCL) is the major contributor to overproduction. Other companies in the list, prepared by the state government, which have exceeded permitted or indulged in over-include GMR. For chromite, primarily the mines held by Tata Steel and Indian Metals & Ferro Alloys Ltd (IMFA) have also been named. All three companies either didn't replied or could not be reached for comments. However notices to them will be dispatched now, said a government official.

When contacted, a senior executive declined to comment, citing the company could react only after getting any demand notice. A leading ferro-chrome producer said, demand notices for leases would not be legally tenable, as, such a case was earlier stayed by the Revision Authority under Union mines ministry. 

First Published: Mon, September 18 2017. 16:58 IST
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