Illegal mining of iron ore beyond
the permissible limits brought the mining industry in Bellary, Karnataka, to a
grinding halt, with huge losses to the steel industry and thousands of people
out of work. That scenario may now be repeated in Odisha, which produces a
third of the country's iron ore, and where a state government team is
investigating cases of mining contractors taking out and shipping ore
illegally.
Rule 37 of the Mineral
Concessions Rules, 1968, permit raising contracts but without the transfer of
ownership and financial control of the mine. But in Keonjhar and other
districts of Odisha, that is exactly what seems to have happened, government
officials say.
“Our team has submitted a
report on eight such mines which we are studying. We have sent notices to three
miners and will be auditing some more,” said a senior Odisha official of
the mines ministry recently.
Odisha produces a third of the 225 million tonnes of iron ore produced in
India, compared with Karnataka's 65 million tonnes. Ore from Odisha also goes
to the big steel plants in eastern and central India.
The Tatas, Steel Authority of India, the state's own company Orissa Mining
Corporation, Adhunik, as well as Birla's Essel Mining own blocks in the state.
Odisha-based miners such as Indrani Patnaik, KJS Ahluwalia and RP
Sao have been asked to explain their arrangement with their common
contractor, Thriveni Earth Movers.
A fact-finding team of 16
accountants sent by the state has also questioned others such as Kabita
Agrawal, Aryan Mines, Mala Roy Mines, the Rita Singh promoted MESCO's
Mideast Integrated Steel and Sarda Mines.
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