Odisha gears up to levy fines on miners

Rs 65,493 crore penalty on excess mining

Unfazed by criticism from miners on its move to recover cost of excess ore production, the state mining department has asked the deputy directors of mines (DDMs) to finalise demand for recovery by the end of this month after hearing out the lessees.

"We have urged the DDMs to complete hearing and finalise demand for recovery by June end. The DDMs have been asked to hear out as many lessees as possible. But the hearing will not be applicable to those miners who have moved the revision authority (under Union mines ministry)," said director (mines) Deepak Mohanty.

The state steel & mines department had imposed a total penalty of Rs 65,492.73 crore on 104 errant lessees found guilty of extracting excess ore during 2001-10, a move contested by around 20 miners in the revision authority under Union mines ministry. The penalty was imposed on miners like Essel Mining, Tata Steel, Mid-East Integrated Steel Ltd, Indrani Patnaik, Rungta Mines and Serajuddin & Company to name a few.

These miners had raised minerals beyond their prescribed limit specified in the mining plan approved by Indian Bureau of Mines (IBM) during 2006 to 2010.

The government had invoked Section 21 (5) of Mines and Minerals (Development & Regulation) MMDR Act-1957 for recovering 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.