Closure notice to seven mines for not paying penalty

BHUBANESWAR: Taking prompt action against defaulting mining lease holders, the State Government on Monday issued closure notices to seven working mines that failed to comply with the Supreme Court order to pay penalty for excess mining without statutory clearances by December 31, 2017.
The lessees, who have been asked to suspend mining operation forthwith, include State-run PSU Industrial Development Corporation of Odisha Limited (IDCOL). The other defaulting companies are Essel Mining and Industries Limited, Mideast Integrated Steel Limited, Serajuddin and Company, National Enterprises, Krop Resources Pvt Ltd and Odisha Mines and Minerals (OM&M).

“The State Government had issued demand notice to 131 mines as per the August 2 Supreme Court order. Only 72 lease holders including 30 non-working mines have paid compensation amounting to `8,223 crore by December 31,” Director of Mines Deepak Mohanty told reporters.Of 49 working mines, 42 lease holders have paid the penalty imposed on them. Adjudicating a writ petition filed by Common Cause, a voluntary organisation, the Supreme Court on August 2, 2017 had directed the State Government to recover 100 per cent compensation for the minerals extracted illegally during 2000 to 2010. As per the report of the Central Empowered Committee (CEC) submitted to the court, 2155.117 million tonnes of iron and manganese ore were extracted without environment clearance and the notional value of the ore was determined at `17,576.16 crore.

The State Government will submit a status report on the payment made by the defaulting lease holders to the CEC within a day or two. The CEC will  submit the status report to the apex court on or before January 4, Mohanty said.Asked what action the State Government is contemplating against the lessees who did not comply with the apex court order, Minister of State for Steel and Mines Prafulla Mallick said January 17 is next date of hearing on the case. It is for the Supreme Court to decide what action should be taken against the non-compliant leases holders, he said.

Responding to a query, secretary of Eastern Zone Mining Association (EZMA) Prabodh Mohanty said some of the mining lease holders including a few of the seven working mines have made part payment. They may approach the court to give them more time as they are not in a position to pay the compensation amount due to non-operation of their mines.