OMC key culprit in excess ore production, says Opposition

The state government today found itself in a tight spot over the role of its mine PSU- Odisha Mining Corporation (OMC) in excess production with the Opposition pointing out that the state owned miner had extracted excess ore valued at Rs 35,000 crore.

"The penalty imposed on OMC is more than half of the total amount of Rs 65,492.73 crore assessed by the steel & mines department on excess ore raised by all lessees. Besides excess mining, OMC is also involved in illegal mining”, said senior Congress leader and Opposition chief whip Prasad Harichandan after moving an adjournment motion on 'Mining loot and coal block allocation scam'.

Several mines of OMC including Bhanjapalli, Roida, Bhadrasahi, Bansapani Dubuna, Kaliapani, south Kaliapani, Khandabandh, Gandhamardhan-A and Gandhamardhan-B have been involved in excess production, Harichandan said.

By issuing showcause notices to lessees under Section 21 (5) of Mines and Minerals (Development & Regulation) Act-1957 for recovering cost of production worth Rs 65,492.73 crore, the state government has admitted mining scam of that magnitude, he added.

Daring the state government to initiate action against illegal miners, the Congress leader said that the amount calculated on excess production, if recovered, can fund five flagship programmes of the government.

Harichandan also attacked the government on OMC-Sainik Mining deal, seeking the know if the chief minister had decided in favour of the JV and conceding 74 per cent stake to the private player.

Stating that Odisha had lost some coal blocks due to non-seriousness of its PSUs like OMC, he said that the state was set to lose more blocks due to inordinate delay in their development.

Joining the debate, another Congress MLA Naba Kishore Das said, “Why was the state government silent on the issue of excess production for all these years? This government is not serious on collecting penalty from the mine owners. The government was also unable to frame a mining policy in the past 12 years. The mining scam in Odisha has emerged as the biggest scam of the state in the pas decade.”

Replying to the adjournment motion, steel & mines minister Rajani Kant Singh said, “Through a notification dated September 18 this year, the state government has decided to reserve balance mineral deposits in favour of OMC. Standalone miners have been urged to offer surplus produce to end-user industries after meeting their captive requirement, if any. Moreover, under Section 21 (5) of MMDR Act, the state government has issued notices to lessees who have extracted excess ore for recovering cost of production from them.”

On delay in development of coal blocks, Singh said it (delay) was due to joint allocation of coal blocks to PSUs of Odisha and other states. The state government had recommended for 47 coal blocks for investors of which the Centre has allocated only 15, he said.

The minister refused to comment on OMC-Sainik Mining deal, stating the matter was sub-judice.