There is widespread resentment among the people in general and the mines-affected ones in particular as the State Government has failed to realise at least around Rs 20,000-crore fine it has imposed on various mines owners for illegal mining in the State.
The Orissa High Court has also recently asked the State Government to establish special courts at the earliest in consonance with the provision under section 30-B of the Mines & Minerals (Development and Regulation) Act, 1957 for speedy trial of offences related to illegal mining.
The Government has all ready ascertained huge revenue loss due to the underreporting of ex-mines prices of iron ore by some mine owners. The State is benefited from the revenue generated by mining and non-realisation of huge amount of fine for illegal iron ore mining under the MMDR Act has adversely affected the revenues.
Recently, The Indian Bureau of Mines (IBM) pointed out that some of the leaseholders in Odisha are reporting more production and dispatch in the grades less than 55%Fe at very low ex-mines prices. As per the IBM study, malpractices adopted by the lessees showing higher quantities in lower grades and to reduce the ASP published by IBM and thus reduce the payments like premium, royalty, DMF and NMET to be made to the State Governments which is directly linked to ASP.
These facts indicate there is going on another big mining scam by lessees of auctioned mines as happened in 2007-2014 inviting another Shah Commission and Court Matter WPC 114 of 2014 (Common Cause Vs Govt. of Odisha). This will lead to closure of many mines due to huge manipulations and inaction of the State Government.
Writing a letter to the State Principal Secretary, Steel & Mines Department, Jana Adhikar Parisada president Bijay Parida has urged the Government that the fine amounting to over Rs 20,000 crore may be urgently recovered from mines owners. He has demanded that appropriate order be passed under Sections 21(1) and 23 of MMDR Act to ensure scientific development of mineral blocks and sustainable revenue generation for the State.