In a damning observation, the Justice M B Shah Commission in its comprehensive report on illegal mining in Odisha, Goa and Jharkhand - which was laid in Parliament on Monday - suggested that a Rs 2 crore fine on each hectare of encroachment by mining firms like Tata Steel and Aditya Birla Group’s Essel Mining in the ecologically sensitive parts of Odisha, should be imposed.
In Goa, it observed that illegal exports of ore during 2000-2010 is worth Rs 2,747 crore and this amount should be recovered with interest from firms in addition to imposing penal action on them. The panel in its observation regarding the state of Jharkhand, said that companies like SAIl, Tata Steel and JSW Steel “illegally” extracted iron ore and manganese worth Rs 14,541 crore, and this amount should be recovered from them.
The Commission, which probed illegal iron and manganese ore mining, also suggested that mining leases could also be cancelled in cases where the encroachment is more than 15 per cent of the leased area in Odisha.
The report, also said assessment of the ore removed from illegal encroached quarry pits should be done and its value should be recovered along with appropriate penalty from lessees.
“For other kind of encroachments (due to various mining activities in Odisha), an amount of Rs 2 crore per hectare should be charged,” the Commission in its report, tabled in Parliament, said.
The Supreme Court had directed the Karnataka Government to recover the cost of damages due to the encroachment outside the leased area at the rate of Rs 1 crore per hectare in Odisha.
“But in Odisha, the ecosystem is very sensitive, high forest, best elephant habitat and corridor, hence, considered to impose Rs 2 crore per hectare,” it said.
Quoting survey done by the state government, Commission found that Tata Steel encroached 13.255 hectares or 1.98 per cent of the total leased area in its Joda-East Iron Ore and Manmora Manganese mines.
The survey found two cases of violation by Essel Mining and Industries and in once case, the encroachment is more than 10 per cent.
Citing a 2013 order of the Supreme Court in which it had ordered cancellation of leases, which encroached more than 15 per cent beyond the lease area in Karnataka, it said, “similar action should be taken in the case of Orissa state also.”
Illegal exports of ore during 2000-2010 is worth Rs 2,747 crore and this amount should be recovered with interest from firms in addition to imposing penal action on them, the Justice M B Shah Commission report on illegal mining of iron and manganese ores in Goa has said. Considering an average price of $40 per tonne, the value of illegal exports that has been undertaken (non-royalty paid iron ore) during the period 2000-2010 works out to be Rs 2,747 crore, pegged at the exchange rate of Rs 43 per dollar, the report observed.
“Hence the amount is required to be recovered...In addition to penal actions arising out of as theft of iron ore outside the country and other actions,” it said.
The major exporters from Goa includes Sesa Goa ltd and Sesa Resources ltd. It also said there were large differences in the production/export data given by customs, port and Goan Mineral Ore Exporters’ Association.
Accordingly, there would be difference in the royalty and custom duty collection.
Further, there was a large difference between the total quantity of ore exported and produced. The difference is taken as illegal export and corresponding loss to the exchequer, it said.