Recently, CEC submits report on Odisha Iron ore mining case. The report doesn’t recommend mining embargo but highlighted severe irregularities.
- Mining lease of Essel Mining’s Jilling & Kasia mines should not be renewed owing to violations
- Concerns have raised over JSPL & Sarda Mines’ arrangement. The state government has asked to take a call on this along with other cases of Rule 37 violation
- 213 MnT Iron ore and 2.4 MnT Manganese ore are found to be extracted without EC from 2000-2011 onwards
- On this illegal extraction, the government has recommended over 30% penalty on notional value or IBM price per tonne Total penalty of INR 170.91 billion for Iron ore and INR 4.85 billion for Manganese ore has recommended (OMC: INR 21.77 billion; Sarda: INR 19.39 billion; Tata Steel: 6.14 billion)
- 20 leases were operating without EC, which include mines of Essel, Tata, OMC & others. On these mines, 70% of IBM value is recommended as penalty
- INR 5 crore per acre of penalty is recommended for excessive mining
As the report doesn’t recommend for mining ban, so no recurring impact will be there. However, it will be a major one time hit for players like Tata Steel & other merchant miners.
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