Panel pegs illegal Orissa mining at Rs59,000 cr

The commission has advised the government to adopt auctioning of iron ore and manganese for maximisation of revenue.

Bhubaneswar | Updated: January 29, 2014 4:42:13 am

If the value of the iron ore and manganese mined in Sundargarh and Keonjhar districts for one year is given to the tribal families of the two Orissa districts, each of the tribals would be richer by Rs 9.43 lakh, says justice MB Shah Commission in its report on Orissa mining irregularities. The commission has put the Orissa illegal mining figure at Rs 59,000 crore.

Keonjhar and Sundargarh are among the most poorest districts of Orissa with a majority population living below poverty line.

In the two districts, where 79 companies including Tata Steel, Essel Mining, Orissa Mining Coorporation and M/s Serajuddin dug up iron ore and manganese much beyond the permissible level, the total amount of iron ore extracted from those between 2005-06 to 2011-12 was 5,24,142 million tonne. Its total sale value at Rs 19,99,847.5 crore.

The commission in its report said that even if 10 per cent of the average income from the sale of iron ore between 2004-05 to 2011-12 is utilised for providing basic facilities such as drinking water, roads, hospitals and schools, the districts would have well-knit basic facilities.

“If 8 years average yearly income from 2004-05 to 2011-12 is computed in the same manner, 10 per cent of yearly income would be Rs 2,498 crore. If the income is used for development for the two districts, those two districts would be par excellence for stay and would be equal to well-developed districts of any developed states,” the commission noted.

“Until now nobody has bothered for Corporate Social Responsibility even though lessee or their raising contractors have pocketed the entire income from the non-renewable resources without any hinderance. Undoubtedly, they have earned super-normal profit,” the commission noted.

The commission has advised the government to adopt auctioning of iron ore and manganese for maximisation of revenue.

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