Bhubaneswar: Senior BJP leader and Bhubaneswar MP Aparajita Sarangi on Monday alleged that Odisha is losing crores of rupees due large scale corruption in manganese mining in collusion between state government machinery and private miners.
Addressing a press meet in Bhubaneswar, the parliamentarian said corruption seen in an unusual increase in the volume of low-grade iron ore had been raised earlier, and similar lowering of grades has been found in chrome ore and manganese (mn) ore from Odisha.
It has been seen that there has been an unusual spurt in the volume of low-grade manganese ore (below 25% mn) from Odisha. This results in low payment of auction premium as Average Sale Price (ASP) notified by IBM is much less for low grade ore, the BJP leader claimed.
The modus operandi has been to sale manganese ore to trading companies at low rates and subsequently selling the same ore at much higher price without any further value addition or beneficiation, she claimed.
Aparajita said the Union Ministry of Mines had in a letter to the state government on April 6, 2023, mentioned about alleged dispatches of low-grade manganese ore from Odisha mines to traders for sale as high grade ore without processing. Indian Bureau of Mines (IBM) had written to the Mines Ministry about these irregularities, she said.
The Mines Ministry has intimated the state of how rampant under reporting and sale through trading companies is taking place in newly auctioned manganese mines in Odisha to avoid bid premium, royalty and contribution to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET), Aparajita said.
The investigation done by the IBM clearly indicates an effort to reduce the average sale price by showing a much higher percentage of production of low grade ore, she said, adding that before auction, the low grade manganese ore ranged from a low of 4.86% to a maximum of 40%. However, this has been raised to 98% and 96% respectively in last two years. This lowering of grade of ore have led to a huge loss to the state exchequer, the MP claimed.
The BJP leader alleged that the Odisha government has failed to enforce the rules mandated under the MMRD Act, National Mineral Concession &Development Rules 2017 on multiple counts and needs to take demonstrative action including cancellation of lease of such leaseholders who are doing grave injustice to the people of Odisha.
It is the responsibility of the state government to establish the correct grade of material being dispatched and charge auction premium, royalty and other payments, she said.
In spite of repeated efforts on the part of Ministry of Mines, the state government seems to have turned a blind eye to the rampant corruption in iron ore, chrome ore and manganese, Aparajita said.
No standard operating procedure (SOP) has been developed to prevent recurrence of such theft through downgrading the ore.
Instead of initiating steps for cancellation of the lease, the state government has given a window of opportunity to the mine owners by raising a demand and allowing them to get a stay order from the High Court or the Mines Tribunal, she claimed.
The BJP leader sought to know as to why procedure for cancellation of lease of such mine holders who are actively cheating the state and the people of Odisha is not understood.
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