Report by; Abhinash Jena, News Bureau, Odishabarta
BHUBANESWAR:A Committee constituted by the state Steel and Mines department,Govt.Of Odisha to look in to irregularities in mining activities has come up with startling relations on the alleged multi crore mining scam.
The five member committee convened by P.C.Patra, Dy.Director of Mines which visited Sarada Mines (P) Ltd, during august, 2011,in its report he stated that the company one of the accused in the mining scam, violated the rule 37 under mineral concession Rules 1960 by transferring the interest in the mining Jindal Steel and Power Limited causing considerable loss of royalty to Odisha Govt.
Section 1 of Rule 37 says “the lessee shall not, without previous consent in writing of the state govt.(a) assign ,sub-let. mortgage or in any manner, transfer the mining lease or any right, title or interest thereon; or (b) enter into or make any bona fide arrangement, contract or understanding whereby the lessee will or may be directly financed to a substantial extent by or under which the lessee’s operations or understanding will or may be sub stantially controlled by any persons other than lessee”.
SMPL holds a mining lease over an area of 947.046 hectare in Thakurani Reserve forest in Kendujhar District. The entire production from the mines is being sold to Jindal Steels as stated by the mining company.
The committee also stated in its report on dated.9/9/2011 pointed out that Sharada sold the entire production to Jindal through the miner claims that there is no agreement with JSPL.
Moreover,Sarada Mines has allowed Jindal Steel to install two separate crusher units having capacity of 1000 and 3000 TPH within the lease-hold area without permission from the competent authority,The lessee had applied for permission to install pipe conveyor for transportation of Iron ore from Thankurani Mines,Block-B of Sarada Mines to Deojhar railway sliding.The Committee ,however,questioned the move pointing out that how Sarada Mines could apply for permission for installation of pipe conveyor when the entire production in the form of RUN OFF MINES is sold to jindal Steel.
The act of seeking permission by the lessee for installation of pipe conveyor for major transportation of product not belonging to the lessee leads to inevitable conclusion of the lessee and JSPL being acting as one body and the lessee resorting to working for the interest of JSPL and seeking permission in its own name for products not belonging to the lessee.
The committee also observed the Sarada Mines has sold Run Off mines at the average rate of Rs.400/- per MT during the year 2008-09 to Jindal which in turn ,by insignificant spending on processing,traded finished products in high market prices,causing huge loss of the royality of the State Government.
Patro,DDM,the Conveneor of the committee ,however,said,there is need for further visit to the mines of the lessee alongwith updated information to establish the “ILLEGAL” relationship between Sarada Mines (P)Ltd and Jindal Steel and Powers Ltd (JSPL) “Prima facia evidence confirms violation of rule-37 of the mineral concession rules ,1960 by Sarada Mines .But the further visits also need to verify its books of transactions,Bank transactions,transit transactions and lifting transctions etc..of both the company.
Addl.secretary A.K.rath said on the basis of the committee report ,has asked the Director of Mines to obtain the calculation made by the Indian Bureau of Mines from august,2009 onwards when ad-valorem royalty was introduced on iron ore to rationalize pricing of Run Off Mines .A letter in this regard issued on dated.June 26th,2012.
The Indian standard price is a weighted average of the top 10 producers of the particular grade.the letter has also prescribed recovery of the loss amount.Accordingly the Indian Bureau of Mines should be punished Why the Sarada Mines sale the products on low value(?) as a result Odisha government face a huge loss of royalty now the amount should re accessed(?)The letter said the lessees who will pay the differential amount(?).