Ask The Government 2

Director of Mines, /DDM Joda/PCCF/Secretary Forest & Environment

1. Letter No 8147 / SM dt 21st Dec 2010 from Steel & Mines Secretary, Govt of Orissa writes to Director of Mines, Orissa for finding out details violation of Rule 37 of MC Rules 1960.

2. In point No (vii) of Page 3 of the above said letter, the Secretary clearly writes that the violation of Rule 37 of MC Rules 1960 also includes "Installation of Crushers and Beneficiation Units within ML area and the agency operating these and the agreements if any with the lessee"

3 M/s Thriveni Earth Movers Private Ltd has set up and owns 13 ( Thirteen Nos) Nos of Iron Ore crusher and Screening units within the mineral lease hold area of T Soy / R P Soy in Guali Iron ore mines and that of Nuagoan Iron Ore Mines of M/s K J S Alhuwalia in Keonjhar district of Orissa. Does this setting up 13 such units by Thriveni Earth Movers has the consent of Forest & Environment department of Govt of Orissa. This is a clear case of violation of Rule 37 of MC Rules 1960. What action Govt of Orissa is taking in case of this violation ? Is there any time frame of action ?

Questions Below

1). M/s Essel Mining and Industries Ltd's mine named Jilling-Langalota has been recommended from your office for re newal . Please let us know the conditions under which Renewal has been recomended when it has forest violation, environmental violations and surface right violations ( Sanatan Mahakud has built a house on the leasehold area without permission) ?

2. On 17 Aug 2010, your office had issued a letter addressed to the Vice President, Essel Mining
For eviction of Mr. Sanatan Mahakuda, unauthorisedly residing at their mining lease land. Why he has not been evicted till date?What action you are taking against the Company for willfull disobeying of your order? 

3) M/s Jindal Steel and Power Ltd (JSPL) has set up a crushing and screening plant within the leasehold premises of M/s S L Sharda and M L Sharda in their Thakurani –B mineral lease hold without requisite permission from authorties in Government of India and further the entire minerals produced from the said mines is being dispatched to JSPL. This is clear case of violation of Rule 37 of MMDR ACT 

a) What action Steel and Mine department is taking over the above said violation ? 

b) What date the Crushing and Screening Plant of JSPL in the above said lease is being closed and evicted from the said land.. 

4) Ms Rungta Mines (P) ( Jajang lease) Ltd have serious MMDR Act violations like that of Surface Right, usage of TP Passes, FC ACT 1980 Violations. What action has been initiated against them ? Even the production of Rungta Mines is beyond their Envrionment Clearance limit. What action has been taken against M/s Rungta Mines. 

For more details, visit us at Mining Scam in Odisha

Ask The Government I

Secretary, Steel & Mines

In the show cause notices issued to the mine owners dt 22nd Sept 2011 namely M/s Indrani Patnaik, M/s R P Sao and M/s Kamaljeet Singh Ahluwallia with regard to breach of Rule 37 of Mineral Concessions Rule 1960, there is one thing is common, which is given detailed below:-

M/s Triveni Earth Movers Ltd is the main and key raising contractor and partner in the above said three mines.

Earlier Honble MLAs of Various parties of Odisha have written letters to Chief Minister ( 3 Nos copies enclosed) that M/s Triveni Earth Movers limited in collusion with one Sanatan Mahakud is forcibly taking of over mines in Keonjhar district.

From above, it is clear that Triveni Earth Movers Ltd is the main cluprit of Orissa Mining Scam and the same has also been telecast in CNN-IBN ( a CD copy attached).

RTI questions

1. What action has been taken against Triveni Earth Movers with regard to illegal mining in Orissa as detailed above ?

2. Why the Govt is not advicing Triveni Earth Movers to close their operations in various mining leases of Orissa inspite of their massive involvement in illegal mining in Odisha ?

For more details, visit us at Mining Scam in Odisha

Ask The Government

RTI Questions

For Collector , Keonjhar Secretary Home

1. On 16th Oct 2011, Sanatana Mahakuda has given an advertisement in Odia daily "The Samaj" confirming that he is distributing " Unemployment Allowance' to youths in the locality of Balda, Palasa, Badakalimati and Nayagarh Panchayats in Champua MLA constituency of Keonjhar district 

2. The above has also been alleged by various MLAs as published in the news papers copies and this "Unemployment Allowance" is basically being paid to build up and maintain Private Army of Sanatana Mahakud ( as per news paper reports and petitions of MLAs 

3. This private army is running a private kingdom in the locality and forcibly taking over various business and mining operations and is also disturbing the operations / public hearings of government mining companies like that of SAIL, OMC and Nilachal Ispat Nigam Limited etc

Questions Below

a. Is the district administration aware of these activities of Sanatana Mahakuda’s Private army?

b. What is the source of this unemployment allowance? Is it from the ill-gotten money that Sanatana Mahakuda has received by way of illegal mining?

c.What are the FIR’s and cases pending against Sanatana Mahakuda of Joda? What is their status?

10 MLAs of Odisha Legislative Assembly have written letters to Chief Minister of Odisha with a copy to Collector, Keonjhar about the illegal and mafia activities carried out by Sanatan Mahakud and Thriveni Earth Movers in Keonjhar district. Copies of the letters are being attached ( 3 letters). 

1. Kindly let us know the action initiated by Collector and other district authorities of Keonjhar on Sanatan Mahakud and Thriveni Earth Movers on the complains of MLAs of Odisha.

For more details, visit us at Odisha Mining Scam

Pattnaik Minerals dragged to court for illegal mining

Following direction by the State Government to the Deputy Director of Mines (DDM), Joda senior mining officer Samir Kumar Mishra has filed a case against Pattnaik Minerals Pvt Ltd (PMPL) in the Barbil JMFC court for illegal mining. The case is filed against PMPL directors Saroj Pattnaik, Akhilendra Pattnaik and Ajay Pattnaik under Sections 4 and 21 of the MMDR Act.

The petitioner has alleged that the Joribahal mines, spread over an area of 106.534 hectares, of Pattnaik Mineral was involved in illegal mining outside its lease area, encroaching into the adjacent area of BPJ lease of the Odisha Mining Corporation (OMC), Besides, the company is also alleged to have constructed buildings outside its lease area, broken the safety zone of the lease area and dumped overburden from the mines outside the lease area without obtaining required permission from authorities.

For more details, visit us at Mining Scam In Orissa

Is mining law different for different companies ?

'State Govt’s involvement in mining scam exposed’

All trails of the mega mining scam in Odisha lead to the State Government Offices. Involvement of top authorities in this maze of corruptions has raised suspicion over the Government’s integrity. The slogan of ‘clean image’ of the Government by the ruling BJD is only a hoax and the dark spots of corruption are very well visible to the public, say BJP leaders.

Recently, the State Mining Department issued notice to Sharada Mines for violation of Rule 37 of the Mineral Concession Rules (MCR), 1960. “There is prima facie evidence of violation of Rule 37 of the Mineral Concession Rules, 1960, by the lessee… Violation of provisions of Rule 37 entails termination of mining lease,” the notice issued by Under Secretary of Steel and Mines Department Ds Jena said.

The matter had come to the notice of the Deputy Director of Mine (DDM), Joda when Jindal Steel and Power established two iron crushers inside the Sarada mines in 1997-98.

Being aware that it was a violation of the MCR, it was surprising how the DDM allowed the crusher to be set up. Sarada Mines, the lease holder of the Soyaballi Thakurani Iron ore mines spread over 947.04 hectares in Keonjhar district, has been found selling its entire run of mine (ROM) produce to Jindal Steel and Power Ltd (JSPL) at a much lower price than the IBM mineral rate without an agreement since then.

In 2002, the lessee of this iron ore mines, Mohanlal Sharda and Sunderlal Sharda, had applied for renewal of their lease in the name of a new company, Sharda Mines Pvt Limited, for a period of 20 years. The RML application was granted in the name of Sharda Mines (P) Ltd in 2004-05 in spite of the fact that the then Chief Secretary, DP Bagchi, in his note sheet had remarked, “It is well known that the mines is operated unofficially by Jindal and would it not amount to fraud ?” But for unknown reasons, the State Government allowed this violation to continue until the Shah Commission visited this mine last year.

After repeated allegations, a five-member committee formed to inquire into the violation of Rule 37 of the MCR, submitted a report to the Government of November 9, 2011. The report mentioned about major benefit of the mine flowing to the JSPL. The present arrangement between the Sarda Mines and the JSPL unbelievably reduces the value added tax (VAT) collection by the State Government on account of law pricing of ROM in comparison to the value derived by the JSPL from the product vis-à-vis the market price.

The Shah Commission during its visit also had suspicion over Sharda Mines selling all it produce to JSPL at such low price. also the commission reaised objection on illegal extraction of Minerals beyond permissible limits, establishment of conveyor belts violating forest laws and wondered how and why Sharda mines allowed JSPL to establish the crushers in its area etc. The State Government, in order to show that it is clean and has no forvour for this mining company, has only issued a show cause notice but allowed the mining operations to continue as usual. The officials and the top bureaucrats with whose connivance the illegal operations continued are yet to be booked.

For more details, visit us at Scam in Orissa

Ordinance on mining regulator

Perturbed by the cases of illegal mining in mineral rich states like Karnataka, Orissa and Goa the Union government plans to set up the National Mining Regulatory Authority (NMRA) through an ordinance under the existing Mines and Mineral (Development and Regulation) Act. 

The proposal of an independent regulatory authority is seen as a response to the increased allegations of illegal mining in as many as seven states. The mining regulator will have the powers to investigate and prosecute those involved in illegal mining. 

The independent regulator proposed to be set up, will be able to take stringent measures to curb illegal mining such as blacklisting those found guilty and holding special courts. A draft prepared by the Group of Ministers (GoM) in this regard intends to invest the authority with the powers of a civil court and its officials will have responsibilities similar to the state police. NMRA will be authorized to impose Rs 5 lakh fine for the first violation and for subsequent violations, the fine could be as high as Rs 10 lakh. 

For more details, visit us at Mining Regulator

Societal Impact of illegal mining:

Illegal mining helped some vested interests to reap rich benefit out of the process. Some unscrupulous people and mafias became rich overnight. Even some local people involved in the nexus between the illegal miners, transporters and traders, pocketing a part of this fortune.

So in a sense, it has created a social imbalance with the people involved in these illegal activities owning disproportionate assets compared to those people having their income from known sources.

Mines mafias had a field day in the backdrop of laxity in the government supervision and tacit approval of the field officers posted in the mineral belt. The officers posted at these lucrative mining sites prospered at the cost of society and the nation at large. Consequently, there is concentration of wealth and income in the hands of few people creating societal tensions.

The involvement of small mining companies in such illegal activities earned a bad name for the mining companies as a whole even though all weren’t involved in such undesirable activities.

On the other hand, the clampdown on illegal mining has resulted in collateral damage by way of loss of jobs particularly for those who were employed in transport of minerals like drivers, helpers among others. Consequently, the sale of specialized trucks and tippers that are used to ferry minerals from pit heads to ports has fallen sharply.

For more details, visit us at illegal Mining

Observations of CEC

The green bench of the Supreme Court has directed the Orissa government to implement the recommendations of the Central Empowered Committee (CEC).The direction of the court followed the submission made by the Orissa government that the CEC recommendations in general are acceptable to it. 

CEC submitted its interim report to Supreme Court on 26 April 2010 with a set of recommendations pertaining to illegal mining activities in the state. Among the recommendations, it suggested that the Renewal Mining Lease (RML) cases should be disposed of expeditiously. 

Deemed extension clauses should only be used in contingency situation and shouldn’t be availed indefinitely. Similarly, it suggested that the mining in non-forest areas can be allowed only after obtaining all the environmental and other statutory clearances by the lease holder.

The lessees would have to pay the Net Present Value (NPV) of the forests for the entire lease area as per the Supreme Court direction of 2002, both in Renewal Mining Lease (RML) and Mining Lease (ML) cases.

Since continuing mining over a long period without renewal of mining lease becomes a potential source of irregularity, CEC suggested it to be decided in a time bound manner, which the state government has accepted.

CEC suggested that apart from the payment of NPV, for mining operations, the mining plan need to be approved by the competent authority. For the forest areas identified by District Level Committees, mining can be taken up only in the broken up portion of the land subject to payment of NPV for the entire DLC forest area.

However, mining in un-broken (virgin) land can be allowed only after all the statutory clearances are obtained and NPV is paid. Besides, 50 percent of the NPV collected would be spent by the Special Purpose Vehicle (SPV) to be formed for the development of the local areas.

It may be noted, the matter of illegal mining was referred to CEC by the Supreme Court. The CEC had detailed meetings with the representatives of state government and the petitioner Ravi Das, a senior journalist. 

For more details, visit us at Scam in Odisha

Measures taken to check illegal mining

In the aftermath of allegations of illegal mining activities in the state, the Orissa government has taken a series of measures to check the illegal mines. This included revamping the mineral administration, formation of State Level Task Force (SLTF) and District Level Task Force (DLTF), Digitization of the map of the lease area, streamlining the ore transport and export using the Railways and Port network, introduction of the new transit pass (TP) with hologram among others.

The Orissa government has constituted a State Level Task Force (SLTF) under the chairmanship of the Chief Secretary, which is regularly meeting and discussing various issues concerning the illegal mining and transportation of minerals among others. 

Detail discussions are held with various agencies and organizations to check illegal mining, transportation and theft of minerals in the state. Similarly, a District Level Task Force (DLTF) has been formed under the chairmanship of the concerned district collectors to check this menace within that district.

To check illegal transportation of minerals using the network of Railways and Ports, a detailed regulatory system has been put in place following the request of the Hon’ble Chief Minister Sri Naveen Patnaik to the Hon’ble Prime Minister Dr. Manmohan Singh. 

The Railway authorities have agreed to measures like verifying the transit pass issued for the consignment before allowing its stocking at the rail siding and subsequent loading on to the rakes, to check illegal transportation of minerals in Orissa. The entry and exit restrictions have been put in place which is applicable to the private railways siding of Tata and SAIL.

To get rid of the fake TPs which were detected on certain occasions, the government has introduced new Transit Pass (TP) for the transport of minerals with watermark and new hologram from April, 2010.

The digital mapping of the lease areas are being prepared using the latest technology used by the revenue and disaster management department through the National Remote Sensing Agency (NRSA) and ORSAC. This is expected to help in the demarcation of lease boundary lines and thereby check illegal mining.

The genuineness of the license issued for storage and trade of minerals under the OMPTS (Orissa Mineral Prevention of Theft, Smuggling), Rules 2007 is also being reviewed on a regular basis. More than 680 such licenses have been suspended and show cause notice has been served under the rule.

The Police in the districts of Sundergarh, Mayurbhanj and Keonjhar districts have been given special powers to search and seize the minerals transported illegally, the vehicles and the persons engaged in such illegal activities.

To check illegal trade of minerals in the border areas, the state government has sent a proposal to the Jharkhand chief minister for constitution of a joint committee consisting of the officials of both the state. The Chief Minister Sri Naveen Patnaik has already sent a letter to his Jharkhand counterpart seeking his co-operation in the matter.

Regular raids are being conducted by the SLTF and DLTF in different mining belts of the state. As a result, the government has seized around four lakh tons of illegally mined minerals including iron ore, manganese and bauxite from the Joda-Barbil and Koira regions of Keonjhar district from April 2009 to May 2010.

In the aftermath of the multi crore mining scam which had caught the state government in a tight spot, 384 illegal activities were detected during this period which includes 292 activities in the Joda-Barbil belt and 92 activities in the Koira region. The value of these seized minerals has been estimated at Rs 17.65 crore. As many as 222 vehicles involved in illegal mining activities were also seized.

The state government has realized Rs 6.91crore from the seizure operations which includes the penalty imposed on illegally mined ores and the costs realized from the disposal of confiscated ores and minerals. Of the total value of the seized minerals of Rs 17.65crore, minerals worth Rs 16.68crore have been seized from the Joda-Barbil belt while the balance Rs 96.43lakh from the Koira region. 

The seizure operations include 3.63 lakh tons of iron ore, 6879 tons of manganese and 270 tons of bauxite. More than 75 per cent of the minerals have been seized from the Joda-Barbil belt.

An inter-departmental committee headed by the Commissioner, Commercial Taxes, Government of Orissa has been constituted for automation and modernization of check gates in the state. Simultaneously, the weigh bridges in locations like Keonjhar and Joda are being rationalized.

With a view to bring in administrative reforms using the Information Technology, an Inter-Organizational Group (IOG) has been formed. A Revenue Intelligence Group (RIG) has been formed under the Chairmanship of Transport Commissioner which is sitting regularly.The Centre has also agreed to strengthen the regional office of the Indian Bureau of Mines (IBM) located in the state.

A committee headed by the director of mines (group leader) to monitor the verification of records of all the mining leases (ML) or renewal mining leases (RML) has already submitted its report to the government. 

It may be noted, Orissa government has already issued guidelines for the movement of minerals by the Railways in a bid to check illegal transportation of ore through this route. The guideline, which has been issued in consultation with the Railways, mainly focuses on authentication of the consignment to restrict the shady traders from sending illegally mined ores to different destinations.

The new guideline broadly has two check points. First, at the time of indenting for rail rakes, the person wanting to send the minerals has to get the signature of the local state mining official on the document authenticating the source of the material. Second, after the material reaches the rail siding, it has been made mandatory for the railway officials to verify the transit pass issued for the consignment before allowing its stocking at the rail siding and subsequent loading on to the rakes.

This two pronged strategy would go a long way in checking illegal mining, stocking and transportation of minerals considering the fact nearly 50 per cent of the minerals raised in the state are transported through the Railways.

Faced with a barrage of criticism over the mining scam, the state government cancelled the mining license of Ram Bahadur Thakur Limited (RBTL) and the administrative enquiry is underway for Arjun Ladha and B C Dev Mines.

Due to the flouting of norms by the miners in the state, the mining operations of as many as 220 mines were suspended in the state in the wake of the multi- crore mining scam. Besides, the Indian Bureau of Mines also suspended the operations of eight more mines last month.

IBM has served notices to five mines in the Joda-Barbil belt and three mines in the Koira region to suspend operations. The mining operations of these mines were suspended for the failure of the miners to comply with the provisions of the 'Mining Plan' of IBM.

For more details, visit us at Odisha mining scam

Common man's perception

The common man perceived illegal mining as willful action by the mining companies to extract ore beyond their approved quantity and beyond the lease area allotted to them. A part of this increased extraction was diverted to the parallel black market which was not accounted for.

A nexus between the mining officials at the field level, officials of forest and revenue department and some company officials were involved in those activities. These activities were going on in the knowledge of the government with some political leaders of the Ruling Party being the beneficiary from such activities.

Situation on the ground

Though common men viewed illegal mining as something new which has just happened over last 1-2 years, the ground reality suggested that it has been going on for a long time. Only the steel boom that was observed during the last decade accelerated those activities.

Higher value of minerals in the international market compared to the previous years encouraged the vested interests, dishonest mineral traders and some company officials to resort to illegal mining, sale, export of minerals.

Some major areas were identified as contributing to the illegal mining in the states. Those included allowing deemed extension to the mining lease (ML) holders to operate in the non-forest areas, absence of proper verification of the sources of procurement of raw- materials at the ports and the railway sidings, mining without the approved mining plan, mining without the statutory forest and environment clearances, weakness in the mineral administration and theft of minerals among others.


For More details, visit us at Orissa Mining Scam

Factors contributing to the illegal mining

Several factors contributed to the alleged illegal mining activities in the mineral belts of Orissa. One major factor was mining beyond the lease area by the Mining Lease (ML) holders. 

Taking advantage of the remote locations mostly in the forest, they were resorting to mining beyond their lease areas. Since there was no effective system for demarcation of the lease boundaries, overlapping of the lease areas were there. 

Since the mining areas were located mostly in forest land and the government didn’t have effective system for supervision, this was suiting the interest of some unscrupulous the miners who tried to exploit the situation to their advantage by mining beyond their lease area.

Statutory clearances are pre-requisites for staring mining activities by the lease holders. However, some of those mining companies were resorting to mining even without obtaining statutory clearances like forest and environmental clearances.

As per the MMDR Act, mining can’t take place without the approval of the mining plan by the statutory body like Indian Bureau of Mines (IBM). 

Since the amount that a particular mining company can raise was fixed by the IBM authorities, mining without the approval of the mining plan was often resulting in excess mining beyond what could be reasonably allowed.

Delay in disposal of Renewal Mining Lease (RML) also contributed to the menace of illegal mining in the state. Pending the disposal of such applications, the lessee was allowed to continue mining under the Deemed Extension Provision.

Acute shortage of manpower at the field level both under the directorate of mines and other departments like forest and revenue made the supervision almost non-existent. In certain cases, there was official connivance with the dishonest miners. Lack of co-ordination between the directorate of mines, IBM, various departments of the state government like forest and revenue helped in continuation of illegal mining.

Further, the mining activity also exceeded the production level approved in the mining plan (MP). A large number of mines remained operational for long period of time, even after the expiry of the mining leases due to the delay in taking decisions on renewal applications filed by the mining lease holders.

Similarly, in large number of cases, the forest areas approved under the Forest Conservation Act (FCA) were lesser than the forest areas included in the approved mining plan. Lack of co-ordination between steel and mines department and forest department resulted in inadequate enforcement.

On close examination of the issues relating to the system weakness in the mineral administration, it was found that though the transportation of minerals are being done by the Railways, there is no proper verification of the sources of procurement of these raw- materials.

Persons intending to transport minerals through railways book space near the railway siding and arrange transportation through its network. Though the railway authorities have siding facilities at different railway stations for transportation of minerals, the minerals transported through this route were not verified for authencity and bonafideness.

In the absence of such verification of the source of procurement, it is not possible to establish whether the ores transported to various destinations outside the state were legally or illegally mined. It was in this backdrop that the guidelines on the transport of minerals were issued.

While there was connivance of officials posted at the field level particularly in the mineral rich districts like Keonjhar and Sundergarh, the transport of the illegally mined minerals were facilitated by the local people. 

The people involved in illegal transport of minerals were avoiding the main road route and taking their minerals through the rural and forest areas. The locals were actively co-operating in these illegal activities for some money.

Besides, there were cases where the mining companies were lacking effective supervision over the minerals extracted. Media reports suggested that a part of the extracted minerals was finding its way to the black market through connivance of some security persons of the mining companies with mafias.

For more details, visit us at Scam in Odisha

White Paper on Illegal Mining in Orissa

Introduction

The illegal mining in the rich mineral bearing states like Orissa, Karnataka, Goa, Chhatishgarh and Andhra Pradesh has turned out to be a major issue with various political parties going to the extent of demanding an enquiry by the Central Bureau of Investigations (CBI) into the matter. 

It created ripples in the political circle with major political parties highlighting the issue and involvement of the government in the matter. Issue of alleged illegal mining rocked Orissa during last one year with a Bench headed by Chief Justice of Supreme Court Justice K G Balakrishnan directing the Central Empowered Committee (CEC) to submit a report on the alleged mining scam in the state. 

The directions were issued on an application filed by a senior journalist Rabi Das from Orissa. The CEC, appointed by the Supreme Court of India, submitted the report to the Apex Court, after completion of the hearing from the side of Orissa government and the Petitioner. The CEC’s report found that the mining companies violated various environmental and statutory norms and the illegal mining was going on for a long time.

Orissa Assembly also witnessed acrimonious scenes and disruptions in the proceedings over the issue. The state government categorically ruled out the possibility of an enquiry by the Central Bureau Of Investigation (CBI), even though the opposition members in the state assembly made strong demand for it both inside and outside of the house. 

Figure :  Odisha State

Genesis of illegal mining

As the Central Empowered Committee (CEC) appointed by the Supreme Court of India pointed out the illegal mining activities has been going on in Orissa for a long time.

Even before the issue illegal mining was raised in the floors of the Orissa Legislative Assembly (OLA), the government in the steel and mines department had received complaint pertaining to illegal mining by private companies from Mr Prahalad Prusty, an ex-MLA, in December 2008. 

The complainant alleged illegal mining operations in Kasiabeda mines in Mayurbhanj district in Orissa. The steel and mines department had constituted a team of officers led by CVO of the department and based on its report legal action was initiated.

The actions included suspension of the Deputy Director of Mines (DDM), Baripada and Senior Inspector of Mines, Baripada (ii) and recovery of the cost of 64000 tons of excess iron ore extracted from outside the lease hold area by Mr B K Das, the ML holder. Besides, administrative enquiry into the alleged violation of rule 37 of the Mineral Concession Rule (MCR), 1960 was also initiated by the department.

Then, on August 26th, 2008, the Union ministry of mines enclosing a letter from the Office of the Hon’ble Prime Minister along with representation of allegations dated 20th July 2009 was sent to the Orissa government in the Steel and Mines department.

Next day, on 27th August 2009, the state government received another letter from the Union Ministry of Mines enclosing a letter from the Rajya Sabha Secretariat regarding mentioning of the matter of urgent importance by Sri Rama Chandra Khuntia, MP on 21st July, 2009 in Rajya Sabha.

Similarly, the Union Ministry of Mines, in a letter on 2nd September 2009, enclosing a representation from Dr Giridhar Gomango, the former Hon’ble Union Minister and Chief Minister addressed to the Union minister of Mines and a joint representation signed by Sri Narasingha Misra and others addressed to the Union Minister of Mines. Finally, on 7th September 2009, the Union Mines secretary sent a Demi-Official (DO) letter to the Orissa Chief Secretary on the mater.

The representations in its totality suggested that a joint team of India Bureau of Mines (IBM), Directorate General of Mines Safety (DGMS) and Department of Environment and Forests, Government of India be deputed to the state to ascertain the same. Secondly, Central Bureau of Investigations (CBI) be directed to take up investigations into the matter of illegal mining.

Essentially these complaints pertained to the alleged illegal mining of manganese ore by a private company called M/s Ram Bahadur Thakur Ltd. (RBTL) in over Rudukela and Katasahi manganese mines located in Keonjhar district. The alleged illegal mining and mining scam resulted in the suspension of seven officials and arrest of one power of attorney holder. 

For More details, Visit us at Odisha Mining Scam

All About 3,00,000 Crores Odisha Mining Scam

Synopsis of illegal mining in Odisha

The illegal mining in the rich mineral bearing states like Orissa, Karnataka, Goa, Chhatishgarh and Andhra Pradesh turned out to be a major issue during last year with various political parties demanding an enquiry by the Central Bureau of Investigations (CBI) into the matter.The issue rocked Orissa with a Bench headed by Chief Justice of Supreme Court Justice K G Balakrishnan directing the Central Empowered Committee (CEC) to submit a report on the alleged mining scam in the state.

Issues in illegal mining

• Mining beyond the lease area by the Mining Lease (ML) holders.
• Mining without the statutory clearances like forest and environmental clearances.
• Mining without the approval of the mining plan by the statutory body like Indian Bureau of Mines (IBM) in clear violation of the MMDR Act.
• Mining beyond the quantity approved by IBM.
• Delay in disposal of Renewal Mining Lease (RML) and mining under the Deemed Extension Provision contributing to the menace of illegal mining
• Acute shortage of manpower at the field level both under the directorate of mines and other departments like forest and revenue making supervision almost non-existent.
• Official connivance with the dishonest miners and mafias.
• Forest areas approved under the Forest Conservation Act (FCA) being lesser than the forest areas included in the approved mining plan.
• Though the transportation of minerals was being done by the Railways, there was no proper verification of the sources of procurement of minerals.

Steps taken to check illegal mining

• Formation of State Level Task Force (SLTF) headed by Chief Secretary and District Level Task Force (DLTF) headed by the District Collector.
• The digital mapping of the lease areas are being prepared using the latest technology used by the revenue and disaster management department through the National Remote Sensing Agency (NRSA) and ORSAC.
• Verification of the transit pass issued for the consignment by the Railway authorities before allowing its stocking at the rail siding and subsequent loading on to the rakes, to check illegal transportation of minerals in Orissa. The entry and exit restrictions have been put in place which is applicable to the private railways siding of Tata and SAIL.
• To get rid of the fake TPs which were detected on certain occasions, the government has introduced new Transit Pass (TP) for the transport of minerals with watermark and new hologram from April, 2010.
• The Police in Sundergarh, Mayurbhanj and Keonjhar districts have been given special powers to search and seize the minerals transported illegally, the vehicles and the persons engaged in such illegal activities.
• To check illegal trade of minerals in the border areas, the Orissa government has sent a proposal to the Jharkhand government for constitution of a joint committee consisting of the officials of both the state.
• An inter-departmental committee headed by the Commissioner, Commercial Taxes, Government of Orissa has been constituted for automation and modernization of check gates in the state. Simultaneously, the weigh bridges in locations like Keonjhar and Joda are being rationalized.
• With a view to bring in administrative reforms using the Information Technology, an Inter-Organizational Group (IOG) has been formed. A Revenue Intelligence Group (RIG) has been formed under the Chairmanship of Transport Commissioner which is sitting regularly.
• The Centre has also agreed to strengthen the regional office of the Indian Bureau of Mines (IBM) located in the state.
• A committee headed by the director of mines (group leader) to monitor the verification of records of all the mining leases (ML) or renewal mining leases (RML) has already submitted its report to the government. Eighty seven mines have been found to have resorted to excess raising of minerals beyond the IBM approved quantity.
• Revamping the mineral administration in the state.

Observations of CEC
The green bench of the Supreme Court has directed the Orissa government to implement the recommendations of the Central Empowered Committee (CEC). Recommendations included:

• Deemed extension clauses should only be used in contingency situation and shouldn’t be availed indefinitely.
• The mining in non-forest areas can be allowed only after obtaining all the environmental and other statutory clearances by the lease holder.
• The lessees would have to pay the Net Present Value (NPV) of the forests for the entire lease area as per the Supreme Court direction of 2002, both in Renewal Mining Lease (RML) and Mining Lease (ML) cases.
• Since continuing mining over a long period without renewal of mining lease becomes a potential source of irregularity, CEC suggested it to be decided in a time bound manner.

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