There is clearly no let-up in Odisha government’s expectations from the state’s newest iron ore miners.
The Mines Department on Wednesday shot off notices to miners warning them against failing to meet their prescribed production commitments, or 80% of the previous two years’ average output. These targets have to be met under the Mine Development and Production Agreement signed by the lessees who have bagged mines through auctions.
Companies such as JSW Steel had pleaded for leniency, listing out a long list of infrastructural and circumstantial constraints beyond their control. The state’s finances have taken a huge beating from the pandemic, Odisha clearly cannot afford to lose out on anything from mining a sector to which it lent its full administrative backing.
Mines Director, Debidutta Biswal had responded through letters (dated 21 August and 1 September 2020) reiterating that the MDPA targets, calculated on a pro rata basis, had to be achieved.
In show cause notices following these letters, the Director on Wednesday has alerted miners of their production shortfalls against what should have been dispatched up to August 2020.
SteelMint has reviewed at least ten of these notices:
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