BHUBANESWAR: The state government has imposed a fine of Rs 341.07 crore on three mining leaseholders for allegedly downgrading iron ore quality. Replying to an unstarred question, Steel and Mines Minister Prafulla Kumar Mallik informed the Assembly that a penalty of Rs 298.54 crore has been imposed on JSW Steel Ltd, Rs 37.1 crore on Patnaik Minerals Private Ltd and Rs 5.42 crore on Yazdani Steel and Power Ltd. The three mines are located in Koira circle.
After the state government asked to pay the differential dues, the leaseholders have filed appeals before the Revisional Authority (RA) seeking re-examination. The minister said of the 19 mines, which were auctioned in 2020, a three-member committee, including the director of mines and a representative of the Indian Bureau of Mines had found the involvement of three lessees in downgrading the ore quality.
As per the findings of the committee, drop of grade was observed in Narayanposhi iron and manganese ore block of JSW Steel Ltd. Though the crusher was not shown as running since November 2021 during inspection, but from the circumstantial evidence the crusher seemed to be in operation, the committee report stated. In case of Patnaik Minerals Pvt Ltd, the committee observed the drop of grade in its Mahulsukha iron and manganese ore block in 2021-22 and the screening plant was found to be in operation violating the conditions of mining plan and CTO.
Similar discrepancies were also found in Kolmong iron ore and manganese ore block of Yazdani Steel and Power Limited. The minister informed that the three-member committee has been reconstituted on February 14 as per the recommendation of director of mines and geology. The penalty, however, came after BJP MP Aparajita Sarangi levelled allegations against 20 mining leaseholders for deliberately downgrading the ore to evade export duty as well as tax payable to the Centre and the state.