Illegal iron units flourish in Jharkhand

A large number of iron ore crushing units have mushroomed in the Noamundi belt of Jharkhand, attracted by rich iron ore reserves. However, the legality of some of these can be questioned.

The lure to mine, transport, crush, and export iron ore is strong enough to attract both big and small traders from neighbouring areas. As a result, it is much easier to spot Toyotas, Hyundais and assorted SUVs in the forests than to spot a deer.

Noamundi, today, is home to 100-110 crusher units, compared with just a handful a few years ago. The state government has decided to step up its vigilance. The state mining secretary has directed district authorities to conduct raids for checking this growth in the un-regularised industry.

"Sixty per cent of the units in the area do not have the mandatory licence from the state pollution control department," said an official in the Jharkhand mining department. An official from the state pollution control department said the government was taking pro-active steps to ensure that all units conform with the standards.

"Abundance of raw material, friendly government policies, and proximity to port towns has led to the mushrooming of these tiny pockets of crushers in the Noamundi region," said a mining expert. Legally, iron ore cannot be sold without a post-mining value-addition process. But still truckloads of iron ore, dubbed "excess", are mined and sold straight to operators.

"Many of the smaller companies and traders do not even have steel plants. They primarily export iron ore," said an executive with a company operating in the area. Then there is the involvement of the mafia, which ensures that the issue does not come out in the open.

Export figures from port towns in India's east coast present an intriguing picture. The Paradip port saw a 68 per cent increase in exports of iron ore to reach 9.05 million tonnes in the last financial year from 5.40 million tonnes in 2003-2004. The port at Haldia exported about 4.97 million tonnes of iron ore in 2004-05, 33 per cent above the previous year.

The vision document of the Singhbhum Chamber of Commerce & Industry suggests the government should take over the under-used mines in the state and redistribute them among those who could add value to the ore and not among traders.