Panel for Rs 2cr fine per hectare for mining cos' encroachment

The Justice M B Shah Commission has suggested Rs 2 crore fine on each hectare of encroachment by mining firms, including Tata Steel and Aditya Birla Group's Essel Mining in the ecologically sensitive parts of Odisha.
The Commission, which probed illegal iron and manganese ore mining, in its second report also suggested that mining leases could also be cancelled in cases where the encroachment is more than 15 per cent of the leased area.
The second report covered 23 mining leases granted to 14 groups.
The report, which was tabled in Parliament today, also said assessment of the ore removed from illegal encroached quarry pits should be done and its value should be recovered along with appropriate penalty from lessees.

"For other kind of encroachments (due to various mining activities), an amount of Rs 2 crore per hectare should be charged," the Commission in its report, tabled in Parliament, said.
The Supreme Court had directed the Karnataka government to recover the cost of damages due to the encroachment outside the leased area at the rate of Rs 1 crore per hectare.

"But in Odisha, the ecosystem is very sensitive, high forest, best elephant habitat and corridor, hence, considered to impose Rs 2 crore per hectare," it said.
Quoting survey done by the state government, Commission found that Tata Steel encroached 13.255 hectares or 1.98 per cent of the total leased area in its Joda-East Iron Ore and Manmora Manganese mines.

The survey found two cases of violation by Essel Mining and Industries and in once case, the encroachment is more than 10 per cent.
Citing a 2013 order of the Supreme Court in which it had ordered cancellation of leases, which encroached more than 15 per cent beyond the lease area in Karnataka, it said, "Similar action should be taken in the case of Orissa state also."
"The state government should prepare Rehabilitation and Reclamation Plan at the cost of the lessees and implement the same to restore the environment at the area, in the same manner, as being done in Karnataka, as per the order of the Supreme Court," it said.