Supreme Court order spurs mining dues math

21 Aug 2017

A recent Supreme Court directive has injected the Jharkhand government with fresh enthusiasm to recover penalty running into thousands of crores from 10 companies, including a PSU that heads the list for excessive mineral extraction over and above permitted limits in West Singhbhum’s Saranda and adjoining areas.

On August 2, a Supreme Court order directed Odisha to recover 100 per cent penalty by defaulter companies latest by December 31, 2017, for illegal mining and extraction of minerals above prescribed limits. Only after complying with statutory requirements and paying compensation and other dues in full can the mining lease holders resume extraction, the apex court order stipulated.

In Jharkhand’s West Singhbhum, the glare of excessive extraction of ore – mostly iron and manganese – is on companies such as SAIL, Shah Brothers, Rungta Mines Ltd, Usha Martin, Orissa Manganese and Minerals Ltd (Adhunik), among others, an earlier calculation totalling the penalty to Rs 7,598 crore, with SAIL (Rs 3,470 crore) and Shah Brothers (Rs 1,365 crore) claiming the lion’s share.

But, state mines department secretary Sunil Kumar Barnwal today said these sums would have to be reworked after the Supreme Court order.

“Earlier, we calculated dues to the tune of Rs 7,598 crore from 1994-95 to February 2016 but the Supreme Court order says it should be done from 2000-01 till date. So, the sum will change. We asked West Singhbhum district administration to calculate afresh and forward us the amount for further action. In 10-12 days, we should get it after which we will send payment notices to parties concerned. The Supreme Court set December 31 as the deadline but we should try to recover it before the time limit,” Barnwal said.

West Singhbhum DC Arva Rajkamal said they got the directive today. “We have begun groundwork for fresh calculations and are referring to our old records and logbooks,” Rajkamal said.

Last year, the state mines department submitted a demand of Rs 7,598 crore from 10 companies accused of excess mining to the apex court-constituted Central Empowered Committee looking into mining cases. But, a mines department source said companies thereafter went to various tribunals and got legal stays citing the ongoing case in the Supreme Court on Odisha. Then, Jharkhand had no other option but to wait and watch.

But now that the Supreme Court has given its ruling on Odisha, the scenario is different.

Asked if the state government would have to get those stay orders vacated, Barnwal said it wasn’t required now. “I don’t think we need to approach tribunals or courts to get the stays vacated as the Supreme Court ruling automatically comes into force,” he said.

The apex court also directed the Centre to revisit the National Mineral Policy-2008 which is almost a decade old, particularly on conservation and mineral development, and asked it to complete the exercise by December 31, 2017.

According to existing rules, Indian Bureau of Mines – an apex authority under the Union ministry of mines and minerals – approves an applicant’s plan with details of proposed yearly production. Then, the state pollution control board grants environment clearance. If a mining firm exceeds the capacity sanctioned by the mines bureau, it amounts to violation of Environment (Protection) Act, 1986, and can invite various punitive measures, including scrapped licence.

Excessive production is also dubbed “illegal” under section 21 (5) of Mines and Mineral Development and Regulation (MMDR) Act 1957.

In 2010, the Centre had set up MB Shah Commission to probe mass-scale illegal mining across India. On April 30, 2012, after the Commission’s directives, the Centre wrote to the then Jharkhand government seeking details of companies allegedly engaged in excessive mining in West Singhbhum.

The companies named in that letter were also mentioned in a report of The Telegraph ( Saranda bleeds in illegal ore hunt) published on April 25, 2012. Shah Commission members had also visited Jharkhand.

Source-telegraph