Bhubaneswar: The Odisha government has issued showcause notices to owners of 65 mines to determine their mining lease after detecting massive grade manipulation of iron ore.
The State Level Enforcement Squads (SLES) recently inspected various mines and reported a consistent grade manipulation by the lessees in deviation from the annual average grade that is approved in the mining plan.
The Director of Mines & Geology, Odisha has detailed the leases that have consistently followed downgrading of ores resulting in substantial loss to the state exchequer.
The owners of these mines have been directed to explain why legal action shall not be initiated under Rule 12 (8) of MCR, 2016 for termination of the mining lease and forfeiture of performance security to the state 3xchequer.
Various irregularities such as illegal sub-leasing, excess production beyond permitted limits and unauthorised extraction of minerals have been pointed out.
The letter emphasised that grade manipulation, dilution, misclassification or mis-declaration of mineral grades intended to influence valuation, realisation of royalty as well as auction premium and other dues payable are detrimental to the interest of the state and bad in the eyes of law.
Advocate CR Sahu, secretary of ‘Janmat’, and Bijay Parida, president of ‘Jana Adhikar Parisada’, have demanded termination of lease and forfeiture of performance security by the government.
