BHUBANESWAR: With the state government admitting under-reporting of high-grade iron by mine owners to depress the average sale price (ASP) determined by the Indian Bureau of Mines (IBM) and wide variance in production of lumps, BJP MP from Bhubaneswar Aparajita Sarangi on Tuesday asked the government to reveal the names who plundered the state exchequer.
Showing a reply she received from Union Coal and Mines Minister Pralhad Joshi on illegal mining and export of huge quantity of higher grade iron ore as fines, Sarangi told a media conference here that the state government has informed the ministry it has constituted a committee under the chairmanship of the director of mines to conduct an inquiry into the irregularities.
Since IBM is the competent authority under Mineral Conservation and Development Rules, 2017, the government has decided to include a member of the central agency in the committee.Sarangi said the state government has not mentioned about the preventive measures that have been taken to check such irregularities in future.
As Sarangi raised the issue in the parliament during winter session seeking action from the Centre, Joshi in his reply said that the IBM reported to the ministry that some mine owners have been reporting higher production of low grade of iron ore (less than 55 per cent Fe).
He said production of iron after auction of mines whose lease expired showed great variation in the production of lumps and fines. The new lease holders have shown maximum production of iron ore of less than 55 grade Fe and as a result the ex-mines price has come down substantially.The union minister said his ministry issued necessary instruction to IBM for verification of iron ore production post auction of mines with the state government.Accordingly, the state government constituted a committee.
Sarangi who blew the lid of the mining scam in September 2022, said the state government lost thousands of crore due to under reporting of high grade iron ore in the 62-65 per cent Fe category which was shown as low grade ore (below 58 per cent Fe) to depress the average sale price and export of higher volume of ore claiming exemption of export duty. Such under reporting has led to collection of less funds for the district mineral foundation (DMF) and National Mineral Exploration Trust (NMET).