Bhubaneswar, Feb 2: The miners in Odisha will not be affected by the closure of few mines, RK Sharma, principal secretary of steel and mines department, said here Friday.
While talking at a roundtable on ‘Recent Odisha Mining Scenario’, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), he said: “The miners will not get affected by closure of few mines because in the past they have successfully handled more problematic situations when large numbers of mines were closed down.”
He pointed out that the miners will have to comply with all provisions of the law to smoothly do their business.
To overcome their issues, the miners can file a curative petition in the Supreme Court.
As mines are under central government’s authority, the state has little option, he said, adding that the miners could approach the appropriate forum.
Following the meet, an FICCI resolution requested the state government to urge the Centre to formulate a regulatory/legislative framework and if necessary enact an ordinance to allow the non-operating iron ore mines to start operation with a deferred penalty payment mechanism.
The FICCI resolution said the move would help ease the iron ore supply situation in the state as well as help Odisha realise the balance 21(5) penalties from non-operating leaseholders.
The steel industry officials also raised apprehensions over the 2020 deadline of mines lease. As per the Supreme Court’s earlier order, lease of some mines will be suspended in 2020 and to resume operation of these mines, fresh auction will have to undertaken.
Manish Kharbanda, executive director, Jindal Steel and Power Limited, said: “The 2020 deadline rapidly is approaching. Any decision on mining front should be taken by last quarter of this year. Without government intervention, iron ore production will come down which will affect the steel industry. The G2 level drilling has already come down. The state government can discuss all these issues with the Centre.”
The resolution also pointed out that there is a shortfall of around 25 MTPA of iron ore in the state.
“This has resulted in a steep increase of iron ore prices in the state (59 per cent in last 2 months and approximately 100 per cent increase in last 6 months). This price rise has driven the input costs of the state-based steel industries to unviable levels,” it added. (PNN)
