Steel Industry supports Odisha Govt. decision on cost recovery of minerals

While the IBM, law experts and miners have questioned the
Odisha government’s decision to impose penalty for excess mining, the mineral
based industries have come in support of the government.

The All Odisha Steel Federation (AOSF) has welcomed the
government’s decision to impose penalty and collect cost price form the miners
who have done excess mining. The Federation has clearly stated that raising of
minerals beyond permitted quantity is also a theft.

“Raising of minerals beyond permitted quantity is also a
theft. The mineral resources are for the benefit of public at large. If miner
would not have raised the excess quantity these quantity would have remained
with mother land and would have been used for the benefit of public in future.
The Government is absolutely correct in demanding the cost price of the excess
which must come back to the government for the benefit of people of Odisha.”
The President of AOSF Mr P.L. Kandoi said.

A delegation of AOSF lead by Mr Kandoi met Shah Commission
member U.V.Singh on Saturday and submit a memorandum on behalf of the
federation.

“Yes, we have met Mr.U.V.Singh and informed him about the
raw material crisis the 200 plus steel units facing for the last few years” said
Mr Sanjay Sharma, director of Maithan Ispat, who was also in the delegation.

Recently the Odisha government has sent penalty notice of a
collective amount Rs. 75,000 crore to as many as 104 mining lease holders ,
invoking section 21 (5) of Mines and Minerals Development and Regulation (MMDR)
Act, 1957 and citing an audit report. 

The Steel federation has also welcomed the government’s resolution that
confines mineral extraction for captive consumption only. “It’ll remove the imbalance
to some extent”, Kandoi said. However, the federation has requested the steel
and Mines Secretary Mr Rajesh Varma , to make some intermediate arrangement for
supply of iron ore to the ailing steel Industries.