Apprehending a huge loss of revenue in mining sector during the current financial year due to closer of a number of mines, the State Government has decided to formulate a special policy to continue the mining activities without affecting the probe and the Supreme Court observation, said Steel and Mines Minister Prafulla Kumar Mallick.
Mallick said that the loss towards the mining revenue during the year was likely to increase from present Rs 300 crore to Rs 500 crore per month due to decline of mineral production. The loss would have a direct impact on the State’s finances and developmental activities, he said.
The Minister asserted that a draft policy would be prepared very soon how to ensure perpetuating the mineral activities to help increase the mining revenue. As part of the initiative, he said that he had discussed the matter in detail with the Chief Secretary, the Steel and Mining Secretary and the Director of Mines. All necessary precautionary measures would be taken to framing and implementing the policy provisions which would not affect the ongoing case in the Supreme Court and the probe by the Vigilance, he assured.
The mining activities in the State have virtually come to a standstill due to the probe into the multi-crore mining scam by the Supreme Court monitored Shah Commission. The apex court in May last had asked the State Government to halt mining operations at 26 mines which were waiting for second and subsequent renewal of their leases. The court had also told the State to take steps to expedite the renewal process of all the mines, especially the captive mines of some industrial units including SAIl within six months.
Meanwhile, the Minister said that the State Government had allowed operations of 8 iron ore mines through an express order including one mine of the OMC, invoking special provision of the Mines and Mineral Development Regulation Act. “The Government is considering to resume operation in 18 other mines through the express order within next fifteen days and cases are being examined individually,” the Minister said.
Mallick said that while the forest and environment clearances had already been granted for exploration of 102 MT of minerals, the operation was limited to around 40 per cent. Besides, he said that the Government also had decided to increase the operation capacity of the OMC form the present 2 MT to 5 MT. The OMC would be strengthened technically to carry out more mining activities, he said.