Former Finance Minister and trade union leader Prafulla Chandra Ghadai has urged that mining of precious chromite ore in the Sukinda of Jajpur district be within the control of the Government.
In a letter to Chief Minister Naveen Patnaik, Ghadai said that instead of going for auctioning of both the merchant and captive mines, which would facilitate private companies to participate in bidding and take over the mining operations, these mines should be handed over to State PSU like the Odisha Mining Corporation (OMC) or Industrial Development Corporation Limited (IDCOL).
Notably, as per amendment of the MMDR Act made in the year 2015, the lease period of merchant mines have been extended up to March 31, 2020 and captive mines up to March 31, 2030. In this context, the State Government has started processing auction of 34 merchant mines in Odisha before March 31, 2020.
Among them three chromite mines of Sukinda Chrome Valley namely Sukinda Chromite Mines of Tata Steel, M/s Mishrilal Mines, M/s BC Mohanty and Sons Pvt. Ltd will also be auctioned.
Ghadai told that chromite is a very rare mineral in India and more than 96 per cent of chrome ore of our country is deposited in Sukinda Chrome Valley of Jajpur district. As on April 1, 2015, a total of 344 million tonnes of chrome ore is available in India out of which Odisha has 330.714 million tonnes of deposit.
The chrome ore deposited at Tata Mines, Mishrilal Mines and BC Mohanty and Sons Private Limited’s mines will be approximately 60 million tonnes and these mines can continue up to 60-70 years, if the present raising limit is maintained.
“But if the Government goes for auction process, private companies will come forward for bidding and they will look to their own interest. They will raise the chrome ore in a higher quantity for export and profit of their own, as a result of which chrome deposit of these mines will be exhausted within 30-40 years,” said Ghadai.