Justice MB Shah Commission, set up to probe allegation of illegal mining in the country, has recommended auctioning all future Iron ore leases in Odisha.
Shah Commission report on illegal mining in Odisha was supposed to be submitted in November 2013. Miners & Manufacturers are keeping fingers crossed as the report would prove decisive on the future of Iron ore mining in India. Seemingly, the commission has probed into a large set of trade transactions of the mining fraternity.
The Commission advocates limiting production in Odisha to 50-55 MnT pa with an annual increase of 7.5 per cent to have room for the projected rise in the domestic Steel sector’s requirement is aimed at preserving mineral resources for the next 50-60 years.
Odisha has some of the country’s largest Iron ore mines, several Steel projects and various works, including those of Tata Steel, POSCO, SAIL JSPL and Bhushan.
According to the Shah Commission, illegal mining in Odisha could have cost the exchequer close to INR 600 billion. Illegalities in Goa pegged the loss to the exchequer at INR 350 billion, had led to mining being halted in the state in September 2012.
According to officials, the Odisha government is open to competitive bidding of future mining leases. It also sought framing laws to abate extraordinary margins of entrepreneurs. who take unjustifiable advantage of the existing law.