Bhubaneswar FICCI seeks nod to restart closed mines
Orissa Post reported that Bhubaneswar Chapter of Federation of Indian Chambers of Commerce and Industry has requested the state government to urge the Centre to formulate a regulatory framework, if required through an ordinance, to allow the non operational iron ore mines to restart operations under a deferred penalty payment mechanism.
Mr Manish Kharbanda, Executive Director, Jindal Steel and Power Limited, said at a one-day seminar on ‘Odisha Mining Industry-The Way Forward’ that “We have requested the state government to go lenient on closed mines so that they resume working and repay compensation in instalments. The 56 mines that received statutory clearances for operation were able to pay compensation as they were in operation.” He said restarting closed mines will strengthen people who are unemployed as a result.
While reminding the gathering that the deadline to achieve targets for 2020 was approaching, he said any decision on mining should be taken by the last quarter of this year. Mr Kharbanda said that “Iron ore production will fall if the government does not intervene. And it will affect the steel industry the most. G2 level drilling has already fallen greatly. The state government can discuss all these issues with the central government and take proactive measures to solve problems miners are facing at the earliest.”
Principal secretary, mines, RK Sharma in turn said the state will adhere to the Supreme Court decision and continue to collect penalties to the tune of INR 10,000 crore against INR 17,576 crore from mine leaseholders for illegal mining.
Mr Sharma said that “Miners will not be affected by closure of a few mines because in the past they have successfully handled more problematic situations when large numbers of mines closed down.”
Mr Sharma said miners have to comply with all provisions of law to do business smoothly. To overcome legal hurdles, miners can file curative petitions before the Supreme Court. Mr Sharma said that “As mines are a central government subject, state governments can do little on many things and so miners should approach the appropriate forum.”
The meeting resolved that there was a shortfall of about 25 million tonne per annum of iron ore in the state, which is likely to go up further as the installed capacity utilisation of the state-based steel industries increases.
FICCI added that “[Increased installed capacity utilisation] has resulted in a steep increase of iron ore prices in the state (59 % in last 2 months and approximately 100 % increase in last 6 months). This price rise has driven input costs of the state-based steel industries to unviable levels.”
Owing to the closure of seven mines, there has been a shortfall in dispatch of 18 million tonnes of iron ore, which has resulted in an annual loss of revenue amounting to `900 crore towards royalty. Ficci said 1 lakh direct and 2.5 lakh indirect jobs were lost in the state.
Mr Manish Kharbanda, Executive Director, Jindal Steel and Power Limited, said at a one-day seminar on ‘Odisha Mining Industry-The Way Forward’ that “We have requested the state government to go lenient on closed mines so that they resume working and repay compensation in instalments. The 56 mines that received statutory clearances for operation were able to pay compensation as they were in operation.” He said restarting closed mines will strengthen people who are unemployed as a result.
While reminding the gathering that the deadline to achieve targets for 2020 was approaching, he said any decision on mining should be taken by the last quarter of this year. Mr Kharbanda said that “Iron ore production will fall if the government does not intervene. And it will affect the steel industry the most. G2 level drilling has already fallen greatly. The state government can discuss all these issues with the central government and take proactive measures to solve problems miners are facing at the earliest.”
Principal secretary, mines, RK Sharma in turn said the state will adhere to the Supreme Court decision and continue to collect penalties to the tune of INR 10,000 crore against INR 17,576 crore from mine leaseholders for illegal mining.
Mr Sharma said that “Miners will not be affected by closure of a few mines because in the past they have successfully handled more problematic situations when large numbers of mines closed down.”
Mr Sharma said miners have to comply with all provisions of law to do business smoothly. To overcome legal hurdles, miners can file curative petitions before the Supreme Court. Mr Sharma said that “As mines are a central government subject, state governments can do little on many things and so miners should approach the appropriate forum.”
The meeting resolved that there was a shortfall of about 25 million tonne per annum of iron ore in the state, which is likely to go up further as the installed capacity utilisation of the state-based steel industries increases.
FICCI added that “[Increased installed capacity utilisation] has resulted in a steep increase of iron ore prices in the state (59 % in last 2 months and approximately 100 % increase in last 6 months). This price rise has driven input costs of the state-based steel industries to unviable levels.”
Owing to the closure of seven mines, there has been a shortfall in dispatch of 18 million tonnes of iron ore, which has resulted in an annual loss of revenue amounting to `900 crore towards royalty. Ficci said 1 lakh direct and 2.5 lakh indirect jobs were lost in the state.
Posted By : Amom Remju on Thu, 08 Feb 2018