The Central Empowered Committee (CEC) report on illegal iron ore mining in Odisha has said that the State Government ignored the observations made by the State’s top- most bureaucrat on Jindal Steel & Power Ltd indulging in illicit activities by indirectly owning the smaller mines.
The CEC report, seen by BusinessLine, quotes the then Odisha Chief Secretary’s observations in 2002 saying that “It is well known that the mine is being operated by the Jindals. Would this not amount to a fraud?” The CEC was appointed by the Supreme Court.
The Odisha Government ignored the bureaucrat’s noting when Sarada Mines Private Ltd’s (SMPL) lease for Thakurani-B iron ore block was renewed in 2002.
“The illegalities that have subsequently been found to have taken place indicate that the remark of the Chief Secretary, Odisha, was not without basis and should have been taken note of seriously,” the CEC report said.
Whether this observation of the CEC will have a bearing on the ongoing case in the Supreme Court remains to be seen. The CEC report was submitted on October 16.
While the CEC had sought documents from the State Government, SMPL and JSPL, it has not made any observations and recommendations on the actual ownership/beneficiary of the mining lease. The CEC said that this is in view of the Supreme Court’s January 13 order, which restricted the scope of the investigation.
With regard to violations of Rule 37 of the Mineral Concessions Rule, 1960, the CEC has asked the State Government to enquire into the matter afresh by considering all relevant details and take immediate follow-up action. The Rule states that mining lease-holders cannot enter into any arrangement or contract whereby the lessee’s operations will be substantially controlled by any person or body other than the lessee.
The CEC’s recommendations are based on the findings of a Odisha Government-constituted committee, which found that the major benefit of the iron ore block of SMPL flowing to JSPL. It noted the finding by a committee constituted by the State Government in 2011 which stated that “The present arrangement of sale of iron ore in run-of-mine form at a fraction of the market value by SMPL to JSPL amounts to transferring the interest in mining lease to JSPL which is violation of Rule 37, of MCR, 1960.”