Govt Loses Revenue As Transportation Hit At Keonjhar’s Balda Mines

Keonjhar: Mining and transportation work have been severely affected at Balda iron ore reserves in Keonjhar district’s Joda block following a strike by certain local groups since Tuesday, leading to loss of major revenue for the state government.

Balda mines, which went under the hammer earlier this year, has rich iron ore deposits and is being operated by the Serajuddin Group, one of the oldest miners of Odisha. In February, the company retained the block for 50 years by committing to pay 118.05 per cent of the sale value of ore to the state government.

However, operations at the mines, on which quite a few major steelmaking facilities depend for raw materials, have been suffering owing to labour and transportation related issues, industry insiders said. “Certain vested interest groups have been manipulating some local people and creating disturbances with an intention to arm-twist the management to toe their line,” a company executive said, adding, “More than us the livelihood of genuine workers is hit while the state government is losing an estimated Rs 19 crore mineral royalty daily.”

Around 5000 people directly and indirectly depend on Balda mines for employment. Local mafia control the labour force and dictate terms to transporters in mineral-rich Keonjhar district, notwithstanding government efforts to ensure smooth supply of ore to steel mills.

“The government is determined to remove these bottlenecks so that mineral and steel production gets augmented and our value addition targets are achieved. We are trying to sort out grassroots-level issues through dialogue in larger common good. The whole idea is to give the local as well as the state’s economy a much-needed boost,” pointed out a government officer preferring anonymity.

Locals in Joda area said the mining, which has become a major revenue earner for the state, activities suffer because of the vice-like grip of certain local politicians and businessmen. “It is high time the administration cracks the whip,” an industry insider noted.

Officials of Serajuddin Group, in turn, have lodged a case at the local Bamebari police station against those obstructing transportation and also submitted memorandums to Keonjhar collector and superintendent of police.