ROURKELA: High-grade iron ore fines from Barsuan Iron Mine (BIM) of Rourkela Steel Plant (RSP) sold off allegedly as low-grade, causing losses to SAIL, has come under the scanner of the Central Bureau of Investigation (CBI).
The national agency conducted searches at BIM for the fourth consecutive day on Thursday, taking forward the investigation initiated by SAIL’s internal vigilance team.
Sources informed SAIL had started selling iron fines from its mines to private parties after it was authorised to sell 25 percent of surplus iron ores to mitigate ore shortage in the market.
However, unscrupulous officers in collusion with local authorities used to sell high grade (with 62 per cent iron content) iron ore fines as low grade (58 per cent) at low price to certain private parties from the BIM in Koida block of Sundargarh district causing massive loss to SAIL and the state exchequer in terms of reduced mineral royalty, they said.
In fact, the Internal Vigilance of RSP had begun inquiry into the matter last year, sources said. The sources in SAIL informed that the iron ore fines were stocked at the BIM in heaps with each weighing 20,000 tonne. The Vigilance inquiry found, between March and May 2023, the iron ore fines tested at SAIL’s testing laboratory had 62 percent iron content, but the same tested at the laboratory of the Mines Department showed 58 percent iron content result.
Despite prescribed procedures, these sales were facilitated. Sources said the Internal Vigilance of SAIL subsequently wrote to CBI for a wider investigation and in a parallel action, the SAIL in April this year issued ‘major charge-sheets’ to two general managers (GMs) and one assistant general manager (AGM) posted at the BIM.
They said the CBI team, on Monday, spoke to the authorities of the Internal Vigilance and proceeded to BIM. Apparently the CBI is delving deep into the root of the scam and those involved in it. While some heads are certain to roll in SAIL, the outside actors and private beneficiaries are also likely to face the music, sources added. President of Rourkela Ispat Karkhana Karmachari Sangh and BMS’ state secretary HS Bal demanded stern and exemplary action against the guilty for causing loss to SAIL and also denting the brand image of the company.