Odisha Govt incurred heavy loss due to non-fulfilment of minimum production requirement of Iron Ore .  -Balada iron ore mine despatched a mere 6.82% of its target-

By Bijay Mishra
Bhubaneswar, 30-7-22

  Serajuddin & Co,  which was slapped with a penalty of INR 6028 crore for producing only 16% of its MDPA target for the Balada iron ore mine last year,  has  despatched a mere 6.82% of its target in its second year of production.
   Attaching details of the dispatch statement , Director , Mines in a letter to The Principal Secretary to Govt., Department of Steel & Mincs, Odisha, seeks action against non-fulfilment ofminimum production requirement as per MDPA and under Rule-12(A) of M.C. Rules, 2016 to the Lease holders in respect of expired leases granted through auction.
    The Director Mines enclosed the statement containing information relating to the despatch position of minerals by the new lessees ,granted through auction reflecting the total annual target for despatch as well as actual despatch against the target under Rule-12(A) of M.C. Rules, 2016 for the period for 1s year and 2nd year. It is observed that some lessees including   Serajuddin & Co
have failed to achieve the target and allegedly violated the MDPA agreement having shortfall of required quantity of mineral despatch. The Rule-12A(IB) ofMCRules, 2016 amended in the Gazette Notification dated 10.06.2021 reads -
"where the lessee does not maintain minimum dispatch required under sub-rule(1) for the year as a whole, the State Govt. may terminate such lease after giving the lessee a reasonable opportunity of being heard"
In view of above, the Director requested the Principal Secretary to take necessary action as deemed proper against the defaulting lessees and asked for necessary permission for issue of Demand Notice against the violating lessecs for MDPA shortfall during the2 year.
      Writing a letter to the Principal Secretary, Mr C R Sahu , Advocate & Secretary , “ Citizen Action Forum “ told that   Serajuddin & Co
has  despatched a mere 6.82% of its target in its second year of production. As per MDPA rule , Mines acquired through auction must despatch 80 per cent of their pre-auction annual rate of production to ensure the government doesn't lose promised revenues.
 But by this act of Serajuddin & co, Odisha Government incurred heavy revenue loss . 
In view of this , Mr Sahu  requested  the Govt  to take stern action against this company and urged termination of defaulting leases as per amended MC Rules 2016.
   While contacted , Official of the Balada iron ore mine told that “ We have nothing to speak to you , as everything on this subject is in Public domain “