BHUBANESWAR: The state government has issued show-cause notices to 65 iron ore mine leaseholders for allegedly manipulating ore grades in violation of approved mining plans.
The action follows inspections by state-level enforcement squads, which found that several mine operators had consistently downgraded the quality of extracted iron ore. The alleged practice reduced royalty and other statutory payments, resulting in substantial losses to the state exchequer.
The mine owners have been asked to explain why their mining leases should not be terminated and their performance security forfeited. The notices also cite other alleged violations, including illegal sub-leasing of mines and production beyond approved limits.
During the budget session of the Assembly, Steel and Mines minister Bibhuti Bhushan Jena informed the House that audit findings had estimated a revenue loss of Rs 4,162.79 crore due to the undervaluation of iron ore. He said cases of ‘drop in grade’ had been detected in several iron ore and manganese mining blocks leading to differential royalty demands worth hundreds of crores of rupees.
According to the minister, major instances of grade manipulation were reported from the Koira and Joda mining circles. Jena had acknowledged audit observations indicating that some mining operators had misclassified high-grade minerals as low-grade ore to evade royalty and other statutory levies.