BHUBANESWAR: Penalty in excess of Rs 18,000 crore imposed by the state government on merchant miners for their failure to adhere to mine development and production agreement (MDPA) has remained unrealised as the cases have been mired in litigation.
The government had issued demand notice in July 2021 to 13 lease holders for payment of penalty of Rs 10,158. 29 crore for shortfall in mineral production, mostly iron ore, manganese and chromite during 2020-21 and Rs 8,520.94 crore to four mining companies for violating MDPA for the period 2021-22.
Of the total penalty of Rs 18,679.23 crore imposed on these merchant mines, only Rs 726.69 crore has been realised leaving an outstanding balance of Rs 17,952.54 crore.
Except four, all other miners have challenged the demand notices of the state government in different courts or the revisional authority of the Ministry of Mines. Tata Steel and Mining Limited which received a demand notice for payment of Rs 670.13 crore as penalty for its chromite mines at Saurabil, Kamarda and Sukinda had got a relief from the Orissa High Court and paid Rs 200 crore as penalty as per the court order.
Even after five years of the Supreme Court order (August 2, 2017) for collection of full compensation from mining lease holders who have had extracted mineral in excess of the mining plan and in violation of statutory rules from 2000-01 to 2010-11, some of the miners have not cleared their dues.
On the basis of the assessment of the central empower committee (CEC) and approval of the Supreme Court, the state government raised demand notice of about Rs 17,576.16 crore - Rs 1,7091.24 crore for iron ore and Rs 484.92 crore for manganese ore - against 144 mining lease holders.
According to the CEC report, miners illegally extracted 215.5 million tonne of iron and manganese ore since 2000-01. The state government has so far realised Rs 15,333.34 crore leaving an outstanding balance of Rs 2,242.82 crore. The government has also filed certified cases against the defaulters. Three merchant mines are yet to pay Rs 341.07 crore towards differential amount for downgrading higher grade ore to low grade.