The recent Supreme Court order for realising penalty on illegal iron ore mining is sure to bring down the compensation coming to Jharkhand in a big way.
As per the tentative demand list, which is still under preparation, at maximum Rs 3000 crore can be generated against Rs 7,598 crore that was calculated earlier as fines to be recovered from the Jharkhand-based miners.
As per the direction, the office of District Mining Officer of Chaibasa has arrived at a preliminary estimate which reaches up to Rs 2,549 crore. “The exercise is cumbersome and we are still calculating. Demands from 18 companies have been calculated while data of companies like Tata Steel and owned by Anil Kumar Khirwal are yet to be compiled. It is expected that the entire demand would reach nearly Rs 3,000 crore,” said an official.
As per the earlier calculation based on the MB Shah Commission’s figures and formula set for recovery, demand to the tune of Rs 7,598 was raised from iron ore mining defaulters. largest share was of Government-owned SAIl, Rs 3,470 crore, along with private majors like Rungta Mines, Usha Martin, Adhunik and Shah Brothers and several others.
When asked about the quantum of slip in monetary terms, the official said it was expected. “This was bound to happen since the Supreme Court in its direction has changed the whole formula of calculation. Now, there is no provision of interest to be charged which was, say, two times of the principal demand. Also, base year has been brought down from 1994-1995 to 2000-01,” he added.
Moreover, Director of Mines SI Minz said that the demand raised was open to audit and reassessment. “We have not got any final figure as of now. Directions have been issued to local mining offices to do the calculation based on the data with them and raise the demand from the companies. Yet, the estimation being done can be re-examined and audited based on the facts in hand,” said Minz, admitting to the “loss” having taken place to the State in the comparison of the last figures.
On the other, the companies on the wrong side of the regulations are also not satisfied with the figures coming out. “No demand notice so far has reached to us and we are finger-crossed. If at all we see the tentative demand list there is no case for Kiriburu, Meghahatuburu and Gua and only Dhobil and Sukriluturburu would fall into that category. We have done our own calculations but let them come up with their figures first,” said a SAIl official. The PSU as per the recent list has been held liable for fine to the tune of Rs 1300 crore.
Inputs say that differences between the DMO and companies’ calculations may be mainly because of difference of opinion about whether to take dumped or dispatched ore into consideration. “They are free to challenge the demand paper in a competent court. But as per the ruling of the Supreme Court there is not going to be much misappropriation or change at our level,” said an official.
The Government, on its part, has directed to realise the penalty from the companies before December 31 this year. “The Supreme Court has fixed December 2017 deadline for making the recovery from the mining companies. Additional Chief Secretary Amit Khare has directed the Department in this regard,” said an official.
As per the guidelines of the apex court the money recovered against the illegal mining is to be spent on wellbeing of the locals residing around the leased area who are directly affected by the violations having taken place of the set environmental norms.