The Odisha government has slapped a demand notice on Coal India subsidiary Mahanadi Coalfields Ltd (MCL) to recover INR 8300 crore. The notice is served on MCL to extract cost of excess production of coal in violation of established statutory limits.
Earlier, the state government has showcaused MCL to recover INR 20,169 crore. Later, the hefty penalty amount was reworked and rationalised.
After iron ore and manganese mines, this is the first instance of the state government slapping demand notice on a coal miner. Odisha, complying with the orders of the Supreme Court in a case of unlawful mining, had slapped a demand notice of the order of INR 17576.17 crore on 131 iron and manganese ore miners. The government could manage to recover Rs 11876 crore. For the rest of the miners who have erred in penalty payments, the state government has already decided to attach their properties and freeze accounts under Odisha Public Demands Recovery Act, 1962. The leases of the defaulting miners are also poised to be determined.
MCL authorities feel the demand notice on them is unwarranted and violates the spirit of the Supreme Court judgement.
“The court order was valid for only iron ore and manganese mines and hence, is not applicable to coal. Besides being a coal miner, we are under the ambit of Coal Bearing Areas Act and the MMDR’s provisions cannot be invoked against us”, said an MCL source.
It’s not known what repercussions the Odisha government’s demand notice is going to have on MCL. The coal miner is likely to contest the government decision at an appropriate forum.
The state government is also learnt to be preparing demand notices to be served on chromite, bauxite, limestone and other mine leaseholders. The amount to be recovered from such mines may total to about INR 5000 crore. On the state government’s hit list are major players like Tata Steel and Indian Metals & Ferro Alloys Ltd (IMFA).
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