State govt suspends operations in seven mining companies following their failure to cough up penalties
Bhubaneswar: Acting on its warning, the state government Monday suspended operations in seven mines that failed to pay penalties by December 31 for extracting excess minerals and committing other irregularities.
The defaulters included Essel, OMM, Mideast, National Enterprises, Mesco, Industrial Development Corporation and M/s Serajuddin Co.
The state government had imposed around `3,000 crore fine on these firms towards penalty for carrying out illegal mining besides committing other irregularities. Sources said, five mining companies failed to meet the deadline while Essel and OMM had paid their dues partly.
According to Joda circle deputy director Umesh Chandra Jena, the Serajuddin & Co, Mesco and Industrial Development Corporation (IDC) were asked to stop operation with effect from Monday (January 1) while operation of other defaulting mines will be stopped subsequently.
The size of the collection was small as most of the miners didn’t comply with the government’s demand notice. The state government had a target of collecting `17,576 crore as penalty by the end of 2017 but could mop up only `8,223 crore, said steel and mines minister Prafulla Mallick.
The Supreme Court had August 2 imposed 100 per cent penalty on 152 iron ore and manganese lessees in the state for illegal mining. The apex court had ordered closure of the working mines if they failed to deposit the fine by the end of 2017. These mines were found to have conducted operations without forest and environment clearances, sometimes beyond the permitted area, between 2000 and 2011.
Of these, only 72 defaulters (42 working mines and 30 non-working mines) have been able to meet the deadline, the minister said.
The state government will submit a status report on collection of penalties to the Central Empowered Committee (CEC) appointed by the Supreme Court in two to three days, said director of mines Dipak Mohanty.
The government had on previous occasions issued demand notices to the leaseholders and warned them of action if they failed to meet the deadline.
On future implications of this move, the mines director said, “The date for next hearing in the case has been fixed on January 17. On that date whatever further order will be given, we’ll comply with that.”
The closure of defaulting working mines may bring down the iron ore production by 18 to 20 million tonne per annum. Meanwhile, Eastern Zone Mining Association general secretary Prabodh Mohanty said closing down of working mines will have a negative impact on the state’s development as it would hit the livelihood of workers besides putting investment at stake. He said many mines are closed for over past seven years and cannot pay the dues. He hoped the SC will consider these things during next hearing.
Sudarsan Maharana, OP
