BHUBANESWAR: Even the Government-owned mines do not abide by the law of the land, let alone the privately-owned ones. An inquiry by the Deputy Director of Mines, Joda Circle, has brought this to light.The Orissa Mining Corporation (OMC) which has leased out the Kolha Rodhokela Iron and Manganese Mines has entered into an agreement with IDC and it is the latter which operates the mines. Although both OMC and IDC are State PSUs, no permission has been accorded by the Centre for the arrangement which violates Rule 37 of the Mineral Concession Rules, 1960. As per the clause, the lease-holder cannot assign, sublet, mortgage or in any manner transfer lease or any other right without the consent of the State Government and in case of certain minerals, the Centre’s permission. It also stipulates that the lessee cannot enter into any agreement or contract under which it will be directly or indirectly financed to a substantial extent by or under which its operations or undertakings will be controlled by another person.According to the report submitted by the DD of Mines, Joda Circle, to the Director of Mines, OMC is not the only one to have made such an agreement which violated the norms, lease-holders of four private mines too have done the same. Sarada Mines which has the lease for Thakurani Block-B allowed Jindal Steel and Power Ltd to put up a crusher unit within the leasehold area and sells ‘run of the mines’ to the latter at throwaway price. Although JSPL obtained permission from the Director of Mines, it has not secured the same from the Centre in this connection since the mineral in question is included in the Schedule I of MM (D&R) Act, 1957.In case of Guali Iron Ore Mines lease of which has been granted to RP Sao, the entire transaction of the sale of minerals is done by M/s TP Sao and Sons. Although both belong to the same family, such an arrangement would still necessitate permission of the State or the Centre, the report stated. Similar was the story with Thakurani Iron Ore Mines of OMDC and Jurudi Iron Ore Mines of Mala Roy. OMDC has entered into an agreement with East Indian Company to raise, crush and sell ore without approval, while in case of Jurudi, the lessee has inked a pact with Emars Mining Pvt Ltd. The report which called for probe by a group of CAG empanelled chartered accounts also questioned as to how five other lease-holders issued work order to a contractor for raising ore. The price quoted by the contractor in the order is well above others.
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