India: CEC Report Summary on Odisha Illegal Mining

After a time gap spanning 5 months, the Central Empowered Committee (CEC) has submitted report on illegal mining to Odisha government.

Following series of visits & inspections at banned mines, the SC appointed CEC, has  presented the report that highlighted rampant irregularities in Iron ore mining occurring since years and penal actions for the same.

The report highlighted the following:

1. 30% Penalty for Violation of EC Limit

  • 213.1 MnT Iron ore has been mined in excess of the above mentioned approvals from FY01 to FY11, for which the notional value amounts to INR 170.9 billion
  • Recommended penalty of 30% on the notional value for violation of EC limit. Apart from this, the lessees & mining officials will also be liable under the provisions  of respective acts

    List of 14 leases that produced over 50 lakh MT without or excess of EC

S. No.

Name of the lessee

Total quantity produced without / in excess of environmental clearance

Iron ore  (in MnT)

Notional Value (INR in Billion)

1

OMC

26.02

21.77

2

Sarda Mines

21.36

19.38

3

Essel Mining & Industries

19.68

11.02

4

BPME

11.67

8.38

5

R.P. Sao

10.76

11.27

6

TISCO

9.45

6.14

7

OMDC

9.42

6.42

8

M/s Serajudin & Co.

8.67

7.55

9

Mideast Integrated Steel

8.43

9.24

10

K.J.S. Ahluwalia

7.17

7.19

11

Rungta Mines

6.34

2.91

12

Patnaik Minerals

5.82

4.8

13

BICO

5.23

4.38

14

Rungta Sons

5.13

3.66

Total

155.2

124.18


2. 70% Penalty for Breach of Forest Conservation Act, 1980

  • Recommended penalty of 70% of the mineral excavated during period of such violation from 20 mines, which had violated provisions from FY01 onwards. However, it is anticipated that penalty would not be significantly high as the said mines majorly produced Manganese ore

3. Proposed cancellation of 2 mines of Essel Mining (Kasia & Jilling Langlota) and asked the SC to direct the state government to assign these mines through a competitive bidding process

4. SAIL & Tata Steel will have to pay only the penalties levied on their mines

5. Recommended to suspend the mining operations at Sarda Mines in view of various allegations, which is likely to hamper Iron ore supply for JSPL

6. INR 5 crore per hectare Penalty for Illegal Mining Pits

  • Recommended penalty of INR 5 crore per hectare for illegal mining pits
  • Also, penalty of INR 1 crore per hectare for areas found under illegal overburden of dumps and other mining related activities

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