CEC team to probe JSPL-Sarda Mines nexus

To hold talks with state officials on mine area development SPV

A three-member team of the Supreme Court appointed Central Empowered Committee (CEC) will take up site visit of the Thakurani mines area at Barbil during its four-day visit to Odisha scheduled during March4-7.

The CEC team is led by P V Jayakrishnan, chairman and consists of member secretary, M K Jiwrajka and member Mahendra Vyas.

“It is requested that appropriate arrangements for the site visit, meetings, local transportation, stay and security may please be made. The concerned officers of the state government, the applicant and the respondents may please be asked to be present at the time of meeting/site visit”, Jiwrajka said in a letter to Odisha  Chief Secretary, J K Mohapatra.

Sarda Mines Ltd, the lessee holding the Thakurani mines is in dock for glaring violation of Rule-37 of Mineral Concession Rules-1960. The mines owner was selling its entire run of mine (ROM) produce to Jindal Steel & Power Ltd (JSPL) without any written agreement. Also, the iron sale by the lessee was at unacceptably low rates compared to market prices. The case was referred to the CEC by the apex court in its order dated September 16, 2013.

The state government had served notice to the lessee for the statutory violation. According to an enquiry report of the state government, the major benefit of the mine was flowing to JSPL. The present arrangement of selling ROM to JSPL by Sarda Mines amounts to transferring the lease holder’s interest in the mine to the steel company as per provisions of Rule 37 of MCR-1960, the report stated.

The arrangement also contributed to lower value added tax (VAT) collection by the state government on account of low pricing of ROM by the lessee compared to market prices.The JusticeM B Shah Commission of enquiry during its visit to Odisha, had also found many irregularities in the operations of Thakurani mines spread over 947 hectares of Thakurani reserved forest. Besides inspecting the Thakurani mines, the CEC team will hold talks with top state officials on setting up of a special purpose vehicle (SPV) for periphery development of mines area.

The CEC had recommended that 50 per cent of the additional Net Present Value NPV) collected from mining lease holders is to be utilised for inclusive growth and development in villages, gram panchayats and peripheral areas affected by excavation of minerals.

The state government had engaged Bharatiya Samrudhi Investment & Consultancy Services Ltd (BASIX) to conduct a field survey on requirement of people and prepare a detailed project report (DPR) on the basis of its findings.