Business Standard reported that Indian mining companies have trashed the MB Shah panel report on Odisha, saying the government had received taxes and royalties from the mining companies and it will be improper for the government to go back on contracts as old as 1994.

 

While TATA Steel and Birla’s Essel Mining declined to comment, saying the report is not public, insiders say the mines had deemed status and they were paying all taxes and royalties to the government in time.

 

An official of a mining company was quoted as saying that “The new investments in steel sector and mining sector will come down if mining is stopped. Odisha’s mines are very important for the country as it creates many jobs in the region. The entire Indian steel industry will be in trouble if the government implements the recommendations.”

 

The MB Shah commission has submitted its report to the Indian government which has, in turn, set up a Committee of Secretaries to study the report and take action, wherever necessary. The report said that TATA Steel, Birla’s unlisted company Essel Mining and government owned SAIL are among 70 companies that have violated environment and forest laws. The report has called for stopping production in some of the Odisha’s mines which do not have clearances, capping production in some mines and stopping production where the mines are near rivers.

 

The Commission has estimated iron ore worth INR 45,453 crore and manganese worth INR 3,089 crore have been extracted by miners illegally and without lawful authority by violating environment conditions. The report has not been made public as yet.