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Shah Commission slams miners for not sharing profit

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BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jan 21 2013 | 1:22 AM IST

Echoing the sentiments of the Orissa government, the Justice M B Shah Commission on Sunday criticised mine owners for not taking steps for peripheral development in the mineral rich Keonjhar district and took a dig at their lavish life style.

“You are earning millions of rupees, even having helicopters. Then why should you not provide medical aid in this state, in this district,” Justice Shah asked the mine owners during the commission’s interaction with various stake holders of the mining industry at Keonjhar on the third day of their field probe about illegal mining in the area.

“The principle of economy is when you are earning sufficiently, there is some share of labour also,” he added justifying his demand for profit sharing.

The commission also favoured the idea of collecting special mining royalty for the mineral rich districts, in line with the state government demand to levy mineral resource rent tax for the betterment of the mining areas.

The eight-member team led by retired Supreme Court judge M B Shah also held the miners responsible for damaging the environment of the mining area.

“Conditions which are required (to get mining lease), specifically provides that you shall not pollute the air, you shall not pollute the water and you shall provide better infrastructure and roads. We have seen a number of places, where pollution has affected the entire area including the trees at both sides of the road,” he said.

The commission on Saturday had visited four mines in the area which included Sarada Mines, Joda (east) mines of Tata Steel, Kasia iron ore and dolomite mines of Essel Mining & Industries and Mideast Integrated Steel's (Mesco) Barbil mines.

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The probe panel grilled these four lessees on various aspects including violation of Mineral Concession Rules-1960, whether the miners have raised excess ore during 2001-10 and if the same has been ratified by the Indian Bureau of Mines (IBM) and whether they have obtained the due forest clearance from the Union ministry of environment & forests (MoEF).

The national level illegal mining investigating agency expressed its displeasure against Essel Mining for absence of statutory clearances and on Sarada Mines for excess lifting of ores. It also questioned the lax attitude shown by the IBM regarding enforcement of mining rules and laws.

The team had to skip its visit to Koira in Sundergarh district on Saturday as about 3,000 mining labourers blocked NH 215 demanding operation of mines without any hindrance.

Shah Commission members said they are not against the mines which are following the rules.

“We have never said legal mining should stop. We only inspected the mines that violated the environmental and mining laws,” Justice Shah said at the interaction meeting on Sunday.

On Friday, the commission had inspected five mines- Unchabali iron ore & manganese ore mines of Indrani Patnaik, Patnaik Minerals Pvt Ltd under Joda circle, Jajang mines of the Rungtas, Mala Ray mines and B D Patnaik's Kalapahad mine. The Shah Commission's probe will culminate with meeting the state Chief Secretary on Monday at 10 am at the state secretariat. The secretaries of steel & mines, commerce & transport and revenue and disaster management departments will also participate in the meeting.

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First Published: Dec 12 2011 | 12:24 AM IST

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