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Odisha govt fines Tata Steel Rs 6,000 crore for illegal and excess mining: Report

06 Nov 2012 Evaluate

Due to Tata Steel’s alleged involvement in illegal and excess mining at its captive mines, it is believed that the Odisha government has slapped a fine on the company. The Deputy Director of Mines (DDM) of Joda mining circle has slapped a fine of about Rs 6,000 crore on the steelmaker and on several other iron ore producers on charges of illegal and excess mining.

The company has however denied this stating that the charges levied at the most could be termed as excessive mining and certainly not illegal mining. The company will make a representation to the state government soon and is confident of resolving the issue amicably. The company has presently stopped the operations at the mines.

Besides, the company has clarified that it has paid royalty and taxes for whatever ore have been mined over and above the permissible limit. It also added that the company has always undertaken mining in Odisha and in other states and operates with strict conformity with the existing laws.

In Odisha state, the company has got manganese mines and dolomite quarries and has also got captive iron ore mines in Joda and Katamati. All the material is currently used for company’s steel-making plant at Jamshedpur, which is about 150 km away from the mining sites.

Odisha accounts for a third of country's iron ore -- a vital steel making raw material-- production. Of late, it has also witnessed several controversies on illegal mining and currently a Centre-appointed Justice M B Shah Commission is probing the cases of illegal mining in the state.

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