As many as 17 lessees in Orissa have been found to be selling iron ore lumps and fines at prices lower than the all-India average resulting in huge loss of revenue to the state government towards royalty.
The miners in the list include Serajuddin & Company, Sarda Mines Pvt Ltd, Kalinga Mining Corporation Ltd, Tarini Minerals Ltd, Penguin Trading & Agencies Ltd, K C Pradhan and Lal Traders & Agencies to name a few.
"It is not clear as to why the lessees are quoting prices of iron ore prices and lumps at prices lower than the all-India average. Location of the mine and high transportation cost can be one of the reasons for under reporting of prices but a thorough enquiry is needed. We have asked the mines directorate to probe into the matter and cross check prices”, a top official source told Business Standard.
It may be noted that against the all-India average price of Rs 4,407 per tonne for iron ore lumps with Fe content of 65 per cent and beyond, the price quoted by Serajuddin & Company stood at only Rs 1,100 per tonne, Tarini Minerals Ltd at Rs 3,494 per tonne, Kalinga Mining Corporation at Rs 3,028 per tonne and that of Ghanshyam Mishra & Sons at Rs 2,774 per tonne.
For iron ore fines with Fe content in the range of 60-62 per cent, the price quoted by Sarda Mines Pvt Ltd stood at only Rs 1,248 per tonne compared to the all-India average of Rs 1,973 per tonne.
Similarly, for iron ore fines with Fe content of 62-65 per cent, while the average all-India price stands at Rs 1,978 per tonne, Sarda Mines and Tarini Minerals Ltd are selling it at Rs 1,248 per tonne and Rs 1,099 per tonne respectively.
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On review of the IBM sale prices of iron ore for March 2011, it has been observed that while the rate of iron ore lumps having Fe content of 58-60 per cent, 62-65 per cent and above 65 per cent are higher than the all-India average, the rate for lumps with 58 per cent Fe content is nearly one-fourth of the all-India average.
In case of iron ore fines, it is seen that 60-62 per cent Fe fines, 62-65 fines and 65 per cent above Fe fines rate for Orissa is the same whereas it should be increasing with Fe percentage.
The prices for these categories are below all-India average and in case of below 55 per cent Fe fines; the price is only one-fifth of all-India average.