Jena alleges Rs 4 lakh cr loss to state in mining scam

The Odisha treasury could have benefited to the tune of Rs 4 lakh crore in the form of non-tax receipts since 2003-04 had the state government cancelled the leases of mines running on deemed extension basis and handed those properties to Odisha Mining Corporation (OMC), said Union minister for statistics and programme implementation and chemicals and fertilisers, Srikant Kumar Jena, here on Tuesday.

“The leases of many mines are not being renewed for various irregularities and allowed to run on deemed extension basis. The state government has the right to cancel the leases of these mines under the Mines and Minerals (Development and Regulation) Act,” he claimed.

 

Out of 107 iron ore mines in the state, 83 are operating by using ‘deemed to’ clause of the mining law. Similarly, of the seven bauxite mines, five have applied for renewal of their agreements, but still are functioning. In case of manganese, as many as 53 mines of 71 are operating while renewal of their leases is pending, said the Union minister in a letter addressed to Chief Minister Naveen Pattnaik.

Considering the official production figure of minerals in past 10 years in Odisha and similar amount of unreported output, the total profit made by the miners goes upto Rs 4 lakh crore after paying royalty and other dues. Had a genuine sale of iron ore taken place through OMC, the state exchequer would have got non-tax revenue of at least Rs 30,000 crore every year, which could have been used to alleviate acute poverty, hunger, unemployment and backwardness under which the entire state is reeling, said Jena.