Serious land and boundary related discrepancies in the DGPS map have become impediments to Jindal Steel and Power’s takeover of the Guali iron ore mines.
The state government has denied there is any such discrepancy. However, the company’s unaddressed concerns have led to JSPL missing its 7th September deadline for payment of a fist instalment of upfront dues of Rs 19.94 crore.
The steelmaker emerged highest bidder to this 358.258 ha area on 19th March quoting a 144 % of sale price as premium. However, previous lessee R P Sao had approached the Supreme Court against the state’s decision to auction the deposit. He would withdraw this petition on 30th July. The matter being sub-judice, JSPL was recognised as preferred bidder only on 1st September 2020.
DGPS survey opens a can of worms
JSPL had already flagged its concerns on 30thAugust over discrepancies in the DGPS survey reflecting how the mine was being operated until 31 March 2020 and what areas covered under the old lease. It wrote to the steel and mines department again on 2nd September, stating it could not proceed unless the state indemnifying it against any future liability. SteelMint has seen copies of these letters and the state government’s response to them.
JSPL claims the ex-lessee of Guali iron ore mine has extended its lease boundary without complying with the common boundary guidelines and approvals thereof. If proved right, this claim could have bearing on the adjoining Nuagaon mine now being mined by JSW Steel. “If the total area currently under Guali as per the DGPS survey and that in the Nuagaon mine are combined, then the sum total area exceeds the total area of the said plots,” says the letter.
47% variation in forest area and 53% in non-forest government land
Some parcels of land, not under the originally leased area but now found within Guali’s DGPS surveyed boundary, have also been transferred to mining contractor Thriveni Earth Movers, claims JSPL. “In village Ladiapada four plots have been allotted to Thriveni Earth Movers in 2008 …If we consider the current (alternatively referred as new) DGPS survey is correct, acquisition of land within the leasehold area by a mining contractor engaged therein attracts violation of Rule 37 of Mineral Concession Rules 1960 read with rule 24 of MCR 2016 where transfer of mining leases, or any right, title or interest therein is not allowed without previous consent of the State Government,” warns the letter.
The state in its response has dismissed these charges. “There is no discrepancy in the area of auctioned Guali Iron Ore Block as the area in possession of the ex-lessee is the legally possessed area which has been DGPS surveyed and put to auction. The area which was legally under operation with valid statutory clearances and valid surface right by the ex-lessee will be duly vested, which will facilitate the new lessee to undertake mining operation,” says the department’s 4th September reply.
In the absence of quick resolution, fresh production from this mine – that has an annual environmental clearance of 5.7 million tonne – could take a while. The former lessee RP Sao though is allowed under the law to evacuate previously mined ore until 30th September and can also seek a further month’s extension. Fourteen out of 19 auctioned mines have not begun production under the new lessees. The government attributes this to logistical constraint and covid19 pandemic.
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