BJP accuses Odisha govt of delaying liquidation of 16.5 MT iron ore

BJD targets saffron party for making baseless statements on mine auction
For representational purposes (Photo | EPS)
For representational purposes (Photo | EPS)

BHUBANESWAR: The BJP on Wednesday targeted the State government for not selling the iron ore lying in leasehold areas for nearly a year when there is a huge demand for the metal in the open market.
Around 16.5 million tonnes (MT) of the 39 MT iron ore extracted before expiry of leases of 19 iron ore mines on March 31, 2020 are still lying in the leasehold areas of the erstwhile mine owners. The estimated cost of the stock will be around Rs 10,000 crore.

“We have been demanding the State government to liquidate the reconciled stock as the previous lease holders failed to evacuate the ore within the stipulated seven months time from the date of expiry of their leases. The silence of the State government is baffling,” said Opposition BJP chief whip Mohan Majhi.
The government had stipulated that the erstwhile mining lease holders will have seven months time from the date of expiry of leases to evacuate and liquidate all iron ore stocks extracted before the end of their lease terms.

The previous lessees had moved the Orissa High Court for further extension of time beyond October 2020 for evacuation of the stock in view of the Covid-19 pandemic situation. The Court, however, directed the State government to take a decision on it as per the law.

After examining the case, the Steel and Mines Secretary held that the non-removal of the iron ore stock could be attributed to the pandemic. The 16.5 MT of iron ore extracted by the old lessees but not evacuated before November 1, 2020 is deemed to be the property of the State.

Despite this decision of the Steel and Mines Secretary, the State government has no reason to sell the iron ore which will bring revenue to the tune of Rs 10,000 crore to the State exchequer when it needs the money most to fight the pandemic, Majhi said. Smelling fish, the BJP MLA from Keonjhar said the ruling BJD is trying hard to pave way for the old lessees to lift their stock. 

Claiming that the existing stock of iron ore is of high Fe grade, the BJP MLA said that efforts are on to liquidate the stock by showing it as lower grade ore. In a memorandum, six BJP MLAs have sought the intervention of Union Ministers Pralhad Joshi and Dharmendra Pradhan into the matter. 

The BJD, on the other hand, accused the BJP for making baseless and politically motivated statements on auction of mines in Odisha. Describing the allegation of Majhi as ‘baseless and politically motivated’, BJD spokesperson Lenin Mohanty said that Odisha is the only state in the country where the auction of mines has been done in a transparent manner and for which the State has received accolades from the Centre and various quarters.

Mohanty said if the BJP leader has any doubt about any irregularity over the process of auction he can request to order a probe into the matter as BJD has nothing to hide. 

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