Joda: Miners will have to pay more to the government than the proceedings from their sale of extracted minerals, a report said Monday.
Such a situation arises as several mining firms quoted over 150 per cent more than the actual bidding price to acquire the mines during the auction.
It is claimed that some firms which have acquired the mines will use the extracted minerals in their plants and will somehow be able to pay a part of their bidding price to the government. Moreover, the firms having integrated steel plants will somehow be able to pay to the government.
However, mining experts apprehended that those firms which will only sell the extracted minerals in the open market might not be able to pay the revenue to the government.
As a result, such firms will try to manipulate and adopt unfair means to evade payment to the government.
Mining experts alleged non-fixation of highest bidding price before the start of the auction process by MSTC (Metal Scrap Trading Corporation Ltd), the Centre’s nodal agency managing the auction, has given rise to such fear.
The auction of 19 mines under various mining divisions is in progress in the state. The maximum competition is being seen in auction of iron ore and manganese mines under Joda division in Keonjhar district.
Many national and international firms have participated in the auction and acquired various mines by quoting 100 per cent or more than the actual bidding price. Even some firms went to the extent of quoting their bidding price over 150 per cent. The auction of Siljoda Kalimati iron ore mine and manganese mine at the highest price 154 per cent is a case in point.
The MSTC, a subsidiary of Union Ministry of Mines, invited online applications from interested bidders for auction of 19 mines whose lease period will expire March 31, 2020. Subsequently, the auction was started from January 31 and concluded February 18. During the auction many some mining firms acquired multiple mines while many big companies have been left frustrated.
However, the question arises here that how could the firms pay 150 per cent to the government while selling the extracted minerals. According to rules, the successful bidders will receive the letter of intent for mining after they pay 10 per cent upfront payment to the government.
Later, the leaseholders will apply before the Centre and the state government for statutory clearance to make their mines operational within 90 days. The new leaseholders will have to enter into a lease deed execution to start mining as the deadline for change in the name of old leaseholder to new leaseholder is two years.
The mining firms will also have to extract 80 per cent of the minerals of the specified mining limits. In case of failure, the firms will have pay penalty to the government. However, it is apprehended that the mining firms which have entered into such costly mining business may not be able to follow every rule of the government and might resort to wrongdoings and manipulation.
PNN