Odisha Mining Scam - CEC held Odisha Govt. responsible

It seems the mining scam in Odisha going to be a big political issue both at the center and state level, considering the gravity of the issue. 

We all know that there were large scale irregularities in licensing of mining activities by the government and at the same time there were gross misuse by the companies involved in the mining activities. With all the mining activities stopped, now the question arise how the state will move ahead with its developmental activities. 

But saying that, we also need to keep in mind that Odisha's economic development has already slowed down in the recent years and if the mining remains blocked, its going to hurt the state further. At this juncture, CEC has thrown literately bomb against the Naveen Patnaik government. 

A Central Empowered Committee (CEC) appointed by the Supreme Court to probe the Odisha mining scam has held the state government responsible for alleged illegal mining from 2000 to 2011.

Submitting its report to the apex court Friday, the CEC said mining companies illegally produced more than 2131 lakh metric tonnes (mt) of iron ore and 24 mt of manganese with a notional value of Rs. 17,576 crore during these eleven years.

The CEC said mining operations in Odisha had been taken up almost by all the lessees without environmental clearance.

 

“It is most disturbing to note that the entire production without or in excess of the statutory approvals has been transported under the transit permits (TPs) issued by the officers concerned of the state government after payment of royalty at applicable rates,” the CEC headed by PV Jayakrishnan said in its 178-page report.

The report added that the state-owned Odisha Mining Corporation (OMC) was a major violator and headed the pack whioh included government of India undertakings and companies belonging to reputed corporate groups.

“The senior officers of the state government from the chief secretary downwards cannot escape responsibility for such wholesale and brazen violation of the acts, rules and guidelines and the directions of this Hon’ble Court and also points towards lax governance,” the CEC said.

This is the second indictment of the Naveen Patnaik government, with Justice MB Shah commission that probed the multi-crore mining scam having recommended an investigation by the Central Bureau of Investigation in February.

After the opposition first raised it in the Odisha assembly in 2009, the Patnaik government ordered a vigilance probe. But opposition parties and social activists have been demanding a CBI inquiry saying the state vigilance department is remote-controlled by the government.

Now it has to be seen how the Odisha government is handling its mining policies, especially under the Modi's developmental policies at the center.  May the time has just come for Naveen to shake hands with BJP !

Odisha discusses about Angul-Talcher-Chhendipada Common Corridor Project despite protests

Despite huge resentment from the local people against the mining activities in the Chendipada block of Angul district, the State Government recently decided to take up the proposed Angul-Talcher-Chhendipada Common Corridor Project in partnership with the Railways.

Located in Angul district, home to one of the country’s largest coal deposits, the proposed coal block contains an estimated 12 million tonnes of coal and a life of 48 years. The mineral lies beneath 7,500 acres of a thriving agrarian economy across nine villages. These are home to more than 10,000 people, whose education and relative prosperity put them in the rural middle class, with capabilities and resources to assert their rights.

The tract was marked out as the Machhakata Coal Block by the Ministry of Coal, one of several coal blocks created in this area, and was allotted in 2006 to MahaGuj Collieries Ltd, a public sector power company jointly formed by the Maharashtra and Gujarat state governments.

Click on this link for details about the protests reported on 11 September 2014 at the Chendipada block.

The proposed project discussed at a meeting at the Secretariat was presided over by Chief Secretary GC Pati and attended by officials of the railways and State Government.

The financial feasibility report of the 162 km  common corridor project was also discussed. “It has been decided that the project will be taken up in partnership between the State Government and the Indian Railways,” Pati said and directed the officials to prepare a definite proposal for approval of the State Government.

The Rs 1,240 crore project which will be implemented by IDCO will require 6,200 acres of land. The corridor will cater to the transport requirement of 32 coal blocks in the area besides saving substantial amount as transportation expenditure. Official sources said the corridor will handle coal traffic in excess of 100 million tonnes a year. The corridor will be connected with the rail heads at Jharpada, Angul and Budhapanka. As many as 55 industries, including steel plants and power projects, would be benefited by the project.

The meeting also reviewed the progress of different railway projects in the State keeping in view Nabakalebar festival next year.

Pati asked the Collectors and SPs of districts concerned to provide required assistance in distribution of compensation and ground-level operations.

The projects included doubling of Delang-Puri, Khurda-Barang (3rd line), Cuttack-Barang, Raja Athagarh-Barang, Titilagarh-Raipur, Sambalpur-Titilagarh, Sambalpur-Talcher and Bansapani-Tomka-Jakhapura rail lines. Budget allocations have been made against all these projects during  2014-15.  As per the decision taken at the meeting, the antisocial elements creating bottlenecks in implementation of the projects would be  strongly dealt with.

Supreme Court order on Coal Mines going to affect Odisha

On 25th Aug 2014 (Monday), India's Supreme Court ruled that all coal mining licences awarded between 1993 and 2010 are illegal and will now examine whether some or all 218 permits should be revoked. In the ruling, the high court said that successive governments gave rights to mine coal to state and private companies in a style that was “not fair and transparent” and without competitive bidding.

The court is also expected to rule on possible fines on firms currently holding those permits, most of which have not been developed, as mines in remote rural areas proved too costly to bring into operation.

But in the process of allocating those licences, India has become tangled in accusations of corruption and mishandling.In the past twenty years India has granted coal blocks to a range of companies in sectors such as power and steelmaking, partly to overcome fuel shortages stemming from its inefficient and state-dominated mining sector.

Coal dependent Odisha

India is one of the largest producers of coal in the world and more than half of its commercial energy needs are met by the fossil fuel. The coal-rich regions include huge swathes of eastern states like Odisha, Jharkhand and Chhattisgarh, and pockets in the central and southern parts of the country. 

Coal mines in Odisha are already reeling under regular protests by the local populations who are demanding compensations against the damages caused to their lifestyles due to mining activities. In Talcher area of Angul, there was a 3 days protest by locals that was brought under control after assurance by the management from the coal mining companies to compensate the people suitably. However, sources reports that still people are not happy and may go for protests soon.

Under such circumstances, state like Odisha that very much depends on the revenue for mining activities will go down for sure that will affect developmental activities in the state. This opinion by SC is definitely a headache for the naveen Patnaik government in Odisha.