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Zee exposes Rs60,000 crore mining scam

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An exclusive Zee Business investigation into illegal coal mining in Orissa has exposed a Rs 60,000 crore scam involving the Naveen Patnaik government and companies including Tata Steel andAditya Birla group companies.

The report shows how rules and laws have been manipulated by many such companies with the connivance of the Patnaik government.

These and other details of the massive coal mining scam, some of which find mention in the MBShah commission appointed by the Union government, were mentioned in the Zee report.

According to the commission , about Rs60,000 crore should be recovered from miners for illegally mined iron and manganese ores. The Shah Commission has severely indicted both the Centre and the Odisha government on illegal mining of iron and manganese ores in its five-volume report and has asked the state government to recover over Rs59,203 crore from the miners.

“All modes of illegal mining” are being carried out in the state and “it appears that law has been made helpless because of its systematic non-implementation,” the Commission said.

It also recommended using the recovered amount for the development of two districts, Keonjhar and Sundergarh, “which are badly affected by illegal mining”.

It also found large-scale violation of environment and forest laws, rules and notifications.

Out of 192 mining leases of iron and manganese ores in the state, “130 lessees are/were noted to be doing production without lawful authority” in violation of Environment Impact Assessment (EIA) notifications 1994 and 2006.

Moreover, 94 mines were found to be operating without environment clearance (EC), while 96 obtained delayed ECs, the Commission said. “Overall, 109 mining leases are/were working under deemed extension and doing production in violation of EIA, 1994 and 2006.”

According to the Commission, iron ore worth over Rs45,453 crore and manganese ore worth over Rs3,089 crore have been extracted “illegally and without lawful authority” by miners in Odisha in violation of EC conditions alone.

Free booty
Close to Rs60 thousand crore illegal mining in Odisha
These activities took place from 2000 to 2010
Illegal mining is still going on in the state
The Shah Commission report has revealed these details
Zee Business is in possession of the report

The rules on hold
Forest and environmental laws were ignored
Mining took place beyond the permitted limit
It was carried out after the companies’ leases had expired

Companies Recovery Notice
Essel Mining (Aditya Birla Group) 4369cr
SAIL 4,123cr
Sarda Mines 2,846cr
Tata Steel 2376cr
OMC Ltd 1,416cr
KJS Ahluwalia 1201cr
FACOR 38.68cr.

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