Demand notices in excess mining case may be ready by month-end

Mining dept had imposed Rs 65,493 cr penalty

Moving ahead with its crackdown on mine owners found guilty of extracting ore beyond the approved limits, the state steel and mines department is likely to finalise demand notices to recover cost of this excess production by the end of September.

Though a hefty penalty of Rs 65492.73 crore was imposed on 104 errant lessees, the department is yet to collect even a single rupee from the miners. The department maintained that recovering penalty would be in violation of the principle of natural justice unless the miners are given an opportunity to air their views.

On the contrary, 20-odd miners had moved the revision authority under the Union mines ministry, contesting the state's demand for penalty.

"The hearing for miners of Joda sector is through. For the Koira sector, we have instructed the deputy director of mines to finish hearing at the earliest. We hope that demand notices to miners on excess production would be raised by the end of this month”, said a senior official of the mines department.

Excess production of iron ore and manganese ore was noticed in case of 104 miners between 2001 and 2010. Frustrated with the inaction of Indian Bureau of Mines (IBM) on the matter, the state government had invoked Section 21 (5) of Mines and Minerals (Development & Regulation) MMDR Act-1957 for recovering the cost of production.

The penalty demand on excess ore production was termed 'unjustified' by the Society for Geoscientists & Allied Technologists (SGAT), a body dedicated to promotion of mineral development.