Opposition smells scam in Mundas decision on iron ore

The Arjun Munda governments decision earlier this month to lift the ban on sale of iron ore fines,created as a result of crushing and processing larger pieces of ore.

Listen to this article

00:00

1x 1.5x 1.8x

The Arjun Munda governments decision earlier this month to lift the ban on sale of iron ore fines,created as a result of crushing and processing larger pieces of ore,has raised eyebrows in Jharkhand with opposition parties alleging that it smacks of a big scam.

It will open doors for the mine owners to make fortunes and cause a huge loss of revenue to this state, said Arvind Jha,former Director of the state Department of Mines and Geology,echoing the views of a section of social activists and lawyers.

In Jharkhand,three steel companies,Tata Steel,SAIL and Usha Martin Industries Ltd,have the licence to mine the ore of fines and lump types for use in their plants.

Story continues below this ad

As per provisions in the Mineral Conservation and Development Rules (MCDR) 1988,the sale of fines was banned by the state on the ground that these companies do value addition,generate employment and add to state revenue.

Tata Steel had the technology and plant to use both ore types,but SAIL and UMIL lacked them,causing their stocks of fines to increase over the years. SAIL and UMIL had reportedly gathered tonnes of fines (each tonne fetches Rs 2,500 to Rs 3,000 in the market).

Instead of making investments to acquire technology and set up plants,SAIL and UMIL approached the government to lift the ban and permit sale of fines. During Presidents Rule (2009-10) the state government declined to provide relief.

After the Arjun Munda government was formed in September 2010,the state government took a U-turn. The mines ministry headed by Deputy CM Hemant Soren,armed with a go-ahead from the law department,cleared the proposal. Subsequently,the Cabinet in its meeting presided by Chief Minister Munda on August 11 adopted a resolution.

Story continues below this ad

In view of the prospective danger to environment and in view of the opinion of the learned Advocate General,the Government of Jharkhand has taken the following decision to accord permission for disposal of iron ore fines (-10 mm to +10 mm size)…, states the resolution that was published in the gazette on August 13.

Since size of the fines mentioned in the gazette resolution does not figure in the resolution (a copy of which is with The Indian Express) approved by the Cabinet,fraud cannot be ruled out,more so as many companies use ore of the 5-18 mm size,said critics. Additional Chief Secretary A K Sarkar,incharge of mines department,said this was being examined.

Opposition parties including Congress and Jharkhand Vikas Morcha are up in arms. This smacks of a big scam. It will make the companies sell lump in the name of fines and encourage other companies who are in the process to set up plants to do so, said JVM MLA Pradeep Yadav echoing the sentiments of more than two dozen Opposition MLAs,who stalled proceedings in the Assembly twice over the issue on Tuesday.