The central mines minister Narendra Tomar has convened a meeting of the mining lessees in Odisha on January 16. The agenda is to discuss the fate of both working and non-working mines in the state in the aftermath of the Supreme Court mandated penalties.
The ministry has invited both lessees who have made payments and those who have defaulted. Non-payment of penalties as ordered by the Supreme Court for excavation of ore breaching the limits of environment clearance has already shut down seven working mines in Odisha. The mines include the ones held by Mesco Steel, Serajuddin & Co, Essel Mining & Industries Ltd, OMM Ltd, Korps Resources and Odisha government owned Industrial Development Corporation of Odisha Ltd (IDCOL).
“Many possibilities can emerge. We have to discuss many things at the meeting. Our talks will also be focused on stepping up iron ore production in Odisha and pricing issues. But, I can’t pre-judge what would transpire at the meeting”, said a senior mines ministry official with direct knowledge of the matter.
Odisha government officials say, the final call on the fate of non-working mines and mines shut due to penalty defaults will be decided by the Supreme Court. “For those mines who have not done the payments or have made partial payments, they can plea to the Supreme Court to request extension in payment deadline which was December 31. Even for OMC owned Roida C mine operated by IDCOL, they have to seek permission of the apex court if they wish to pay”, said a state government source.
For Roida C iron & manganese ore mines, IDCOL which is only the raising contractor was served the demand notice by the mines directorate. The actual owner of the mines is OMC. Now, OMC has agreed to offer an inter-corporate loan worth Rs 105.15 crore to IDCOL on mutually agreeable interest rates. IDCOL would pay the compensation to the mines directorate and the move the Supreme Court for reopening the mine.
Meanwhile, Essel Mining has paid the compensation for its non-working mines after seeking the permission from the Supreme Court. Essel pleaded that its mines were served the notice for realising penalties for Forest (Conservation) Act violations belatedly by the Odisha government.
After the Supreme Court order dated August 2, 2017 in the Common Cause case, the Odisha government invoked provisions under Section 21 (5) of MMDR Act to collect Rs 17,576.17 crore for excess production. The figure was calculated by the court appointed central empowered committee (CEC). The demand notices were slapped on 131 miners.
The government actually recovered Rs 8323 crore from the mine leaseholders.
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