Odisha’s iron ore transportation loss gets bigger; State govt slaps Rs 716 crore demand notice to JSW, Rs 6028 crore to Sirajuddin mines for non-fulfilment of target .

Iron ore mine in Odisha

TBN Desk

Bhubaneswar, 17/08/2021 : Shortfall of mining revenue due to non-fulfilment of Iron ore transportation target has become a major headache for Odisha government. Most of the major mining lessees have defaulted in meeting the iron ore transportation target causing the revenue deficit to the tune of Rs 10,000 crore. Recently the state mining department has issued demand notice of Rs 716 crore to JSW for non-compliance with the iron ore transport target. Besides JSW, notice amounting thousands of crores of rupees have been issued to multiple mining companies, including Mittal, Sirajuddani and Nerveram.

A total of 19 iron ore and manganese mines were auctioned last year in Kendujhar and Sundargarh districts. It involved multiple leaseholders who managed to take over the mines. Leaseholders offered premium of 93 percent to 160 percent of the base price to get the mines. Now the leaseholders have not been able to transport iron ores from their mines as per the target mutually agreed by the mining lessees and government of Odisha. As a result the accumulated  revenue deficit due to non-compliance of the transportation target has gone up to the tune of around Rs 10 thousand crores. In addition to JSW’s Jajang mine, the state government has issued demand notice of Rs 145 crore to ArcelorMittal and the Nipon-owned Thakurani Mining Company for failing to transport iron ore as per the government target.

The Mittal Company has a total target of 42.02 lakh tonnes of iron ore from the mine, while 1.97 lakh tonnes of iron ore has not been transported yet. As a result, under the MDPPA (Model Mines Development and Production Agreement). the state government has reportedly issued notice for revenue on Royalties, DMF and NMET. Not just JSW or Mittal, multiple mining leaseholders have failed to meet the transportation targets. Norveram Steel has been able to transport only 28.56 percent of the ore from the Roida-2 mine. The mining company has been fined Rs 1483.74 crore. Sirajuddin’s company, the biggest defaulter, has been able to  transport only 16.41 per cent of the iron ore from the Balda iron ore mine. The company has been given a demand notice of Rs 6,028.22 crore as the government’s transport target has not been met. Similarly, Jagatjani Services has achieved only 5.06 per cent of the target from the Jaribahal mine. The mining company has been given a demand notice of Rs 287.23 crore. Large mining companies, such as JSW, on the other hand, have now written to the government to surrender few of iron ore mines. Following multiple mining companies failing to meet their transportation targets have raised government concern as how to manage the huge revenue loss. (TN)

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