BS reported that the union ministry of mines has turned the heat on the Orissa government over the issue of alleged under reporting of pit mouth value of ore prices by some unscrupulous miners.
Holding the Indian Bureau of Mines responsible for its faulty procedures adopted in fixing sale value of iron ore, the state government had earlier sought the intervention of the union mines ministry in the matter.
The ministry, in turn has stated that the IBM has been publishing the average sale value based on the PMV which is reported to them by the lease holders. Substantiating its claim the ministry said the average price of iron ore for all grades for April 2011 for grades that are mostly mined in Orissa compare favorably with the all India prices.
This in stark contrast to the contention of the state government which had alleged that there was a glaring difference in prices of sale value of iron ore in Orissa compared to that of other states as well as all India average.
In a recent letter to the state Mr Naveen Patnaik Chief Minister, the Union minister of state for mines Mr Dinsha Patel urged the state government to develop adequate systems to ensure correct reporting by the lease holders by benchmarking the expenses that are allowed to be deducted from the market value of mineral for the purpose of calculating PMV.
Mr Patel has said in his letter to Mr Patnaik that “In a recent initiative taken by the Government, Rule 45 of Mineral Conservation and Development Rules-1988 have been amended to allow the state to ensure end to end accounting of minerals where the state government could check the prices at each point of sale to avoid under-reporting or any circular trading. You may like to direct your mining department to harmonize their work flow processes especially issue of transport permits around this system.”
The Union minister letter has come in response to the Chief Minister letter to him regarding concerns on systematic under-reporting of sale value of iron ore by IBM on which royalty is chargeable on ad-valorem basis.
According to the Union minister letter, the price of iron ore fines with Fe content of 62% to 65% in Orissa for April stood at INR 2,513 per tonne higher than the all-India average of INR 2,393 per tonne.
(sourced from BS)