Shah panel recommends fines, prison terms for Orissa mining violations

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The Union Cabinet referred the MB Shah commission’s report on illegal mining in Orissa to a CoS to scrutinise the report. The Union Cabinet referred the MB Shah commission’s report on illegal mining in Orissa to a CoS to scrutinise the report.
SummaryThe inquiry panel has asked the Patnaik government to auction iron ore mining leases.

to trick the railways into believing that their cargo was meant for domestic use, the commission has asked it to entrust the CBI to investigate the matter. The railways says it has served recovery-cum-show-cause notice to 14 such firms to recover an amount of over Rs 8,000 crore.

A senior Orissa government official said the state has served 146 notices to various companies for indulging in over-extraction by flouting the approved mining plans. Firms that have been served such notices include Essel Mining (an Aditya Birla Group firm) for Rs 3,387 crore, state-run SAIL for Rs 3,990 crore, Rungta Mines for Rs 1,046 crore and two notices to Tata Steel for Rs 6,693 crore and Rs 2,997 crore.

Recommending stiff penalties for miners violating green norms under the Forest Conservation Act, the commission suggested the violators should be imprisoned for six months, which could be extended to seven years. Heavy financial penalties should be imposed on them as well, it said.

The commission said it was disturbing to find that although most mines are located in tribal-dominated zones, the tribals have remained a deprived lot. Unless the miners operating in those zones are mandated to spend half of their profits locally, their lot would not be improved. Till recently the ministry of corporate affairs was toying with a proposal to give non-transferable shares of the mining companies to the eldest woman member of each family living near the iron ore mines.

The inquiry panel has asked the Patnaik government to auction iron ore mining leases to enable it ensure large profits to the state treasury. The commission said half the profits from mining operations mining leases should be used by the state on welfare activities.

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