Bhubaneswar

Prolonged mines closure: Revenue collection dips in Koira

AUROBINDA DAS

Mining, ore-based firms’ woes worsen

Perhaps after Joda division, Koira mining area of Sundargarh district is the second largest revenue generating mining division of the State. That is why for the 2013-14 fiscal, the Government had fixed a target for revenue worth `900 crore. But due to prolonged closure of many mines in the region, the revenue collection dropped to `725 crore, said sources.

Koira Deputy Director of Mines (DDM) Mihir Kumar Senapaty admitted that there was a fall in the collection of revenue due to certain problems in the mines.

It is learnt that there are 70 iron and manganese mines in the area, but only 17 mines were in operation and till mid-May, 10 more mines were made operational. On an order of the Supreme Court on May 16, two mines of the SAIl, one mine of the OMC and 11 private sector mines were closed on technical grounds. After the intervention of the State Government, the mines of the SAIl and the OMC again started functioning in June.

In fact, a majority of the mines were closed on technical grounds by the Steel and Mines Department since 2011 keeping in view the visit of the Justice Shah Commission. Ever since, the mines continue to be closed, seriously affecting production of iron ore. The prolonged closure of the mines has not only hit the revenue but also has directly influenced the economy of thousands of locals and young entrepreneurs.

Though Justice Shah Commission has already submitted its report of findings but no decision on the closed mines has yet been taken up as another body, the Central Empowered Committee (CEC), appointed by the Supreme Court is also probing the illegal mining in the State and during last couple of days a four-member team has visited to different mining areas of Joda and Koira region along with State officials and district administrations of Keonjhar and Sundargarh. The CEC has to undertake an independent assessment of status of mining activities in the State following an order of the Supreme Court on March 21 last.

The apex court has directed the CEC to make a list of lessees who are operating without clearances under the Environment (Protection) Act, 1986, Forest (Conservation) Act, 1980 and renewal of mining lease. The committee has been asked to prepare the list of mines without referring to the Justice Shah Commission’s report. So early decision on the fate of closed mines is very remote, feel many.

However, during his visit here on July 5, State Mines Minister Prafulla Kumar Mallick was apprised of the problems faced by the local mining office and mining industries during his review of the functioning of the Mining Department and the Minister had assured that a meeting would be held at Bhubaneswar on July 19 where officials of various stakeholder departments would be present to resolve the issues. So all eyes now lie on 19 July meeting.

Meanwhile, State Mines department sources reveal that the limit on sale of iron ore at Koira could be modified to 15 million tonnes per annum from 13 million tonnes.