State to recover Rs 20K cr from erring mining firms

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The State Government is expected to recover over Rs 20,000 crore from the erring mining companies, including the State-owned Odisha Mining

Corporation (OMC), while implementing the Supreme Court’s order.

Over Rs 2,000 crore would be recovered only from the OMC, which would be a major financial burden for the State PSU, said sources.

This is being worked out in the Directorate of Mines as Chief Secretary AP Padhi has asked officials to adhere to strict implementation of the apex court’s order and stick to the timeline provided in the judgment.

While notices would be issued to the mining leaseholders for recovery of Rs 17,576.16 crore for excess extraction of minerals in violation of environmental clearance, the OMC would bear the major brunt of over Rs 2,000 crore.

Rs 17,001.24 crore for iron ore and Rs 484.97 crore for manganese, making a total of Rs 17,576.16 crore, would be collected as per the recommendations of the Supreme Court-appointed Centrally-Empowered Committee (CEC).

Since this amount does not include mining without forest clearance, a fresh evaluation would be made for minerals extracted without the statutory clearance.

Further demand notices would be issued for 100-per cent recovery of the cost of minerals from the lessees who have violated the mining plan and are operating their mines with consent to operate required under the Air and Water Acts. The amount would be more than Rs 2,000 crore.

Accordingly, the Director of Mines is in touch with the Deputy Directors of Mines in this regard as they would be raising demand on the pricing formula adopted by the CEC for recoveries from the erring companies.

These notices are to be issued soon as the Deputy Directors and Mining Officers are working out fresh demands.

The State Government has also decided to make recovery under Section 21(5) for mining in forest areas without forest clearances. Accordingly, joint meetings are being held among officials of Forest and Mines Departments to work out details of violation of FCA and also mineral exploration.

There are 16 cases of FCA violations; and the pricing formula adopted by the CEC would also be adhered to in these cases.

Now, there are 102 closed mines. Restarting of mining activities would be considered only after compliance with statutory requirements and full payment of compensation and other dues within December 31, 2017.

However, it was noted that the working mines have not been disallowed from working until the payment of demand is fully made within December 31. 

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