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Mining industry in Odisha which is already at a low ebb is destined to suffer further with scores of mines likely to face temporary closure after the Shah Commission’s report on illegal mining in the state is made public, experts said.
In an exhaustive report running into five volumes, the M B Shah Commission is understood to have nailed both the Central and state governments for illegal mining of iron ore and manganese ore. It has also asked the state government to expedite recovery of Rs 59,203 crore from mine owners for raising ore beyond the approved limits.
“The Shah commission’s recommendations are likely to trigger temporary closure of many mines. This in turn would have wide repercussions on the local economy as it would lead to unemployment. The state government will be in a quandary as well since it has allowed mines to operate without environment clearance and also issued permits for transport of excess ore and collected royalty on them. Again, it is the state government that has permitted mines to operate under ‘deemed extension’ for long periods and so the lessee cannot be faulted,” said a mining expert and former director of mines with the state government.
He said, the commission’s recommendation of auctioning of mining leases is not legally tenable since there is no such provision under the Mines and Minerals - Development & Regulation (MMDR) Act.
The state government, however, is not too perturbed with the Shah Commission's report.
“Unlike Karnataka and Goa, the scenario in Odisha is different. We have taken all possible steps to contain illegal mining. More than 200 mines have been suspended for want of statutory clearances. Demand notices to the tune of Rs 65,492.73 crore have been sent to the miners for recovering cost of overproduction. The government has been unable to collect the penalty as some miners have challenged the matter in the revision authority under Union mines ministry,” said an official source.
On the commission’s recommendation for sale of iron ore in the state through e-auctions, he said, the state government has already taken steps in this regard and is awaiting consent of the Supreme Court appointed Central empowered committee (CEC) to enforce the system on private lessees.
The East Zone Miners’ Association (EZMA), recognised by Federation of Indian Mineral Industries (FIMI), declined to comment on the recommendations of Shah Commission report. However, many miners said the remedial measures prescribed by the enquiry panel are not surprising.
“The provisions such as imposing penalty and imprisoning offenders are there in Environmental Protection Law and MMDR Act. The suggestion to recover money from miners on excess mining has already been implemented by the state government. There is nothing new in the report,” said an iron ore miner of the state, without wishing to be named.
“The state government has already shut down most of the 192 iron and manganese ore mines since 2009 on non-availability of forest clearance. Less than 60 iron ore mines are currently under operation since then while production cap has been fixed at 55 million tonne per year. So, I do not think there will be any large impact on the suggestions made by the panel report,” he added.
The commission, in its report, noted 94 mines were operating without environment clearance (EC) while 96 others obtained delayed ECs. In all, 109 lessees worked under ‘deemed extension’ and produced ore in violation of Environment Impact Assessment (EIA), 1994 and 2006.
Referring to illegal mining, the commission’s report said out of 192 leases of iron ore and manganese ore, 130 were engaged in ore production without unlawful authority. The probe panel has also detected large scale violation of environment and forest laws.
On excess mining, the commission has favoured using of the recovered amount for development of Keonjhar and Sundargarh, the two districts that have been badly affected by excess mining.
The commission has recommended that offenders of mining and environmental laws be imprisoned up to six months with or without penalty. Other recommendations included capping of iron ore production and shutting down mines running without necessary clearances.
SHAH COMMISSION TIMELINE
- Nov 22, 2010: Justice M B Shah Commission appointed to probe illegal mining
- Dec 7, 2011: Shah Commission's first visit to Odisha
- Oct 3-11, 2012: Commission visits state for second time
- Oct 31-Nov 11, 2012: Panel's third visit to Odisha
- Feb 27, 2013: Commission's fourth visit, public hearing held
- May 24, 2013: Final visit to verify mining outside lease area
- July 3, 2013: Panel submits first report on Odisha mining
- Oct 15, 2013: Final report submitted
- Jan 3, 2013: Report placed before Union Cabinet
