The state directorate of mines has issued a show cause notice to Sarada Mines for glaring violation of Rule-37 of Mineral Concession Rules-1960 by selling the entire run-of-mine (ROM) produce from its Thakurani mines in Keonjhar district to Jindal Steel & Power Ltd (JSPL) without any agreement.The showcause notice follows an enquiry report of a five-member panel of steel & mines department that had held the leaseholder guilty of the violation.
“We have issued a show cause notice to Sarada mines based on the preliminary report filed by the enquiry committee over violation of Rule 37 of MCR Rules-1960. We have asked further probe into the matter for additional information”, said Deepak Mohanty, director of mines.
According to the enquiry report of the five-member committee headed by PC Patra, deputy director of mines (Bhubaneswar), the major benefit of the mine is flowing to JSPL. The present arrangement of selling ROM to JSPL by Sarada Mines amounts to transferring the interest in the mining lease to the steel company as per provisions of Rule 37 of MCR-1960, the report stated.
