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LATEST NEWS UPDATES | Iron Ore Scam: Jena Wants Exclusive Rights Over Minerals

Iron Ore Scam: Jena Wants Exclusive Rights Over Minerals

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published Published on Sep 18, 2012   modified Modified on Sep 18, 2012
-Outlook

Alleging a Rs four lakh crore scam in iron ore mining as the state government kept renewal of licenses in abeyance, Union Minister Srikant Jena today demanded exclusive rights to Odisha Mining Corporation (OMC) over minerals.

"The scam relates to renewal of licenses. Official documents show of the 107 iron ore mines in Odisha, 83 are operating by using 'deemed to' clause of the mining law," the senior Congress leader told reporters here, describing the mining scam in Odisha as much bigger than the ones in Goa and Karnataka.

A license for a lease should be renewed if the conditions linked to it are met, which is in the domain of the state government, he said adding since the licenses are not renewed, things are obviously not in order and even public sector companies are also operating on "deemed to" status.

"Is it not a deliberate excuse of the government to keep the renewal of public sector companies in abeyance in order to justify the continued operation by private mine owners on 'deemed to' status," the Union Minister of State for Statistics and Programme Implementation and Chemicals and Fertilisers said.

Jena said he has written a letter to Chief Minister Naveen Patnaik drawing his attention to the matter.

Claiming that nearly 50 crore tons of iron ore have been extracted in Odisha since 2003-04, he said a handful of mine owners have raked in profits worth over Rs two lakh crore during the period.

"If we take into account clandestine mining and the money minted by unscrupulous mine owners, it will not be less than another 50 crore tonnes and another Rs two lakh crore," Jena said in his letter to the chief minister.

In the interest of the state and its people, the state-run OMC should be given exclusive mining rights over iron ore, manganese, bauxite and chromite and to sell them at prevailing market price, he said.

Ores should be given at a concessional rate, as an incentive, to industries investing in the growth and development of Odisha, he said.

Had a genuine sale of iron ore taken place through OMC, the state exchequer would have got non-tax revenue of at least Rs 30,000 crore per annum, Jena said.

This could have been used to alleviate acute poverty, hunger, unemployment, and backwardness under which the entire state is reeling, he said claiming if the profit is taken into account each family of Odisha would have benefitted by at least Rs 40,000 per annum during this period.

Claiming that the loss could not have been possible without connivance of the state with private mine owners, the union minister said "deliberate silence of the government on renewal and letting the private companies operate on 'deemed to' basis allows them to swindle away minerals."

Another serious concern is that Odisha government is yet to impose mining cess on minerals extracted, unlike other states, on various pleas, he said.

On other minerals, the minister said as per 'Economic Survey' of Odisha Government, 2011-12, 41.47 lakh tonnes of chromite have been extracted and there has been an annual profit to private mine owners of at least Rs 5000 crore.

Jena said he has urged the chief minister to stop the "plundering of valuable mineral resources by private mine owners by disallowing the renewals and outright cancellation of their leases."

Outlook, 18 September, 2012, http://news.outlookindia.com/items.aspx?artid=775583


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