Odisha government not in favour of illegal mining probe by CBI

New Delhi: The Odisha government is not in favour of holding a CBI inquiry into cases of illegal mining in the state, as recommended by the Justice M B Shah Commission.

"The government of Odisha is of the view that as the trial of nine criminal cases has already started, and the trial courts have taken cognisance of the offences, there is no need of investigation by Central Bureau of Investigation (CBI)," according to the Action Taken Report (ATR) on the first part of the Shah Commission's report.

The ATR is likely to be considered by the Cabinet at its meeting tomorrow.

The ATR, prepared by a Committee of Secretaries headed by Cabinet Secretary Ajit Kumar Seth, said the Odisha government has conveyed it has taken action against the lessee and power of attorney holder for illegal mining in Joda circle.

"They have informed that six public interest litigation (PIL) petitions have been filed in the High Court of Orissa in this regard, including a petition for transfer of the cases to CBI. These PILs are still pending," the ATR added.

The Shah Commission, which submitted its report in two parts, said "all modes of illegal mining" were being carried out in Odisha and "it appears that law has been made helpless because of its systematic non-implementation."

Recommending the recovery of over Rs 59,203 crore from miners in the state for extracting iron ore "illegally and without lawful authority," the Commission said there was a collapse of government machinery during 2008-2011.

It "looked to be ineffective and helpless in front of mining mafia, persons in political life, mighty lessees and some corrupt officials," it said.

The Shah Commission had recommended CBI inquiry into all cases where FIRs have been registered by the police and the Vigilance Department and cases reported by Mines, Police, Revenue, Forest and other departments from 2008 to 2011.

Sources said the UPA government may not make the full report of the Shah Commission public and only the first part, which was submitted in July, will be tabled during the current session of Parliament, along with the ATR.

The second part of the report on Odisha, a separate report on illegal mining in Jharkhand, and a third and final report on Goa on the same matter, would not be made public at the moment, they said. The three reports were submitted by the Shah Commission in October last year.

The ATR, prepared for consideration of the Cabinet, said the Environment Ministry will conduct a study of the carrying capacity of the mining areas through an institute of repute, looking into depletion of groundwater and pollution of the Baitarni river, among others, the ATR said.

The ATR said the Environment Ministry has proposed forming guidelines for cases involving violation of various forest laws and the penal net present value of forest land used for non-forest purposes will be raised.

According to the ATR, the issue of auctioning iron ore will be decided after consulting stakeholders, including state governments and central ministries, following differences between the mines and steel ministries.

The steel ministry has said that while it welcomes a more transparent mechanism, priority should be accorded to the long-term interests of the steel sector and "e-auction may not be resorted to."

The mines ministry was of the opinion that "there are potential advantages in the e-auction procedure."

The ATR said the Odisha government has raised payment demands on producers where cases of excess output of iron and manganese ores have come to its notice and "these cases will be finalised as early as possible."

Moreover, the Centre has directed the Indian Bureau of Mines to fix responsibility on officials who failed to comply with laws and rules while processing cases for approval for increase in production, the ATR said.

However, the Central government is not in favour of a blanket ban on export of iron ore, the ATR said.

On the recommendation to grant mining leases through public auction or on the basis of product-sharing, the ATR said the Mines and Minerals (Development and Regulation) Bill, 2011, proposes granting prospecting licences and mining leases through bids.

On the issue of railway freight evasion, the ATR said a CBI inquiry is already under way and part of the matter is also sub-judice.

The railway administration has "progressively strengthened its control, monitoring and verification mechanisms" and has served "17 demand-cum-show cause notices for recovery of punitive charges," the ATR said.

The government has also agreed to grant two-year deemed extension of mining leases with prospective effect if a renewal application is not decided by the state government concerned within a stipulated time, the ATR said.

The Environment Ministry will amend section 26 of the Indian Forest Act, 1927, and extend its provisions to all categories of forests so that it can work as a deterrent and make mining in a forest area without approval a cognisable offence.