Sarda Mines has been slapped with a demand of INR 2056,38,43,567 for producing the permitted annual limit of Thakurani B iron ore block in February and March of 2020.
The demand dated 25 Jan ’21 was made by the Joint Director of Mines, Joda whose office has argued that production capped by its Environmental Clearance was to be done on a pro-rata basis and in effect, by mining the way it had, Sarda Mines had violated the EC conditions. The Directorate is invoking Section 21(5)and the interpretation of the same by Supreme Court’s 2 August 2017 order under which the state government had claimed in excess of around INR 17,000 crores from iron ore miners in Odisha.
Speaking about the demand notice served to Sarda Mines Pvt. Ltd., a senior official at the Directorate of Mines informed SteelMint that production and despatches from the mine in Odisha’s Keonjhar district would continue uninterrupted for the time being. However, in case of non-compliance the government might be compelled to take strict action.
It may be recalled that Sarda Mines, whose entire supply is procured by Jindal Steel and Power Ltd, was among the last miners to resume operation after paying around INR 900 plus crores for excess mining.
Ironically, the Centre’s latest reforms include a clarification of Section 21(5) that differentiates between irregular or excess mining from “illegal mining” or mining in the absence or outside of a leasehold. Odisha has backed the Centre’s move to amend this section that allows the state to claim the entire value of the ore sold.
As per the notice, the state had already conveyed its objections about the intensity of production on 06 October 2020 and 07 Jan 2021, and heard representatives of the company on 25 January 2021. It considers their reply to its show-cause notice as “not satisfactory.”
Sarda Mines has until 9 February to pay this amount, which does not include recoveries under Section 21 (5) of MMDR Act for violation of Mining Plan, Consent to Operate and PC.
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