In Odisha, the country’s largest iron ore producer, the erring miners have been allowed a month’s time by the district authorities to clear the dues in compensation. The mine leaseholders were mandated to fork out compensation in lieu of stark violation of environment clearance limits as per an order by the Supreme Court delivered in August last year in response to a petition filed by the NGO Common Cause.
Complying with the apex court’s judgment, the Odisha government had slapped penalty notices on 131 miners worth Rs 17576.17 crore for overproduction of iron and manganese ore. The compensation figure was as extrapolated by the Supreme Court-appointed central empowered committee (CEC). The deadline for payments was December 31, 2017, but it was extended after the top court condoned the delay for some miners who required paying off their respective dues with 12 percent interest. State-run mining entity Industrial Development Corporation (Idcol), Serajuddin & Company and Aditya Birla owned Essel Mining & Industries were amongst the miners making payments beyond the deadline. After the delayed payments, the state government issued orders to facilitate the resumption of mines by Idcol, Essel Mining & Serajuddin & Company.
Still, 56 miners defaulted on paying the court-ordered compensation. Irked with the delay, the state mines department had instructed the collectors of Keonjhar and Sundargarh, the two top iron ore producing districts, to initiate certificate cases against the non-compliant lessees. The direction was pursuant to the decision taken by the state level task force on mining.
“The district authorities have allowed the miners a grace period of one month to settle all dues. Mostly, the miners have to pay out their arrears by the end of August. Some of them have already done some partial payments. Failing to adhere to the next deadline will invite coercive action like confiscation of assets and freezing bank accounts of the miners”, said a mining industry source.
The state government has hitherto managed to collect around Rs 12,000 crore from the iron ore and manganese mines owners. Proceeds of the fund would go to the Odisha Mineral Bearing Area Development Corporation (OMBADC), the special purpose vehicle formed for periphery development of areas impacted by mining operations.
Lesser Impact in the Market-: As the miners who have not been paid the compensation amount ordered by the honorable Supreme Court were non-working mines previously. Most of the working mines have already paid the compensation amount except Mesco mines (3MTPA capacity). And thus the impact on the industry is expected to be minimal.
Leave a Reply