Bhubaneswar, Dec 28: Mining firms in the state are in a hurry to pay up penalties ordered by the Supreme Court for over production during 2000-11, as the December 31 deadline approaches fast.
The companies need to pay a total of about Rs 17,576 crore in compensation for extracting iron and manganese ore beyond the limits approved earlier under environment clearance (EC) rules.
After the apex court recently ruled out any extension in payment deadline, the companies are making intense effort to save their operational leases. The top court also ruled out payment in instalments.
“All big captive and commercial mining companies would pay the compensation amount to save their leases. Tata Steel, Rungta Mines and Essel Mining & Industries have already done so. All operational mines are expected to meet the deadline. For mines out of operations, it would be tough for the leaseholders to make timely payment,” said a mining industry source.
The August 2 SC judgment had directed the state government to extract the cost of excess production from the defaulting miners. The apex court called for recovery of the entire compensation amount, compared to only 30 per cent recommended by the Central Empowered Committee (CEC), a panel appointed by the judges to probe allegations of large-scale illegal mining in the state. The court was adjudicating on a petition in this regard by Common Cause, a non-government entity.
Complying with the SC order, the state government issued demand notices for EC violations on 150-odd iron and manganese ore lessees.
Government officials confirmed that miners had started depositing the money. “The companies have (so far) paid Rs 2,000 crore. We expect more payments soon,” said an official.
The funds would accrue to Odisha Mineral Bearing Areas Development Corporation (OMBADC), tasked with periphery development of mined areas.
State-owned Odisha Mining Corporation is saddled with the biggest penalty amount of Rs 2,178 crore. OMC’s managing director R Vineel Krishna said they’d pay latest by Friday. Others with steep penalty burdens include Sharda Mines (Rs 1,983.9 crore), Essel Mining (Rs 1,102 crore), Mesco Steel (Rs 924.7 crore), Orissa Minerals Development Corporation (Rs 642 crore) and Tata Steel (Rs 614 crore).
The Rs 17,576 crore in compensation was calculated by the CEC for excess mining. Its report said illegally extraction was of 215.5 million tonnes of iron and manganese ore between 2000-01 and 2010-11.
Meanwhile, speaking to Orissa Post over phone, Steel and Mines minister Prafulla Mallick said action will be initiated against erring firms as per the apex court order if they fail to comply with the notices.
The minister, however, remained silent to a question as to how many mining firms have complied with the SC order and paid their penalty. He, however, said that a clear picture will emerge after December 31. (PNN)
