Odisha govt sets up panel to probe duty evasion in iron ore export

A representative of the Nagpur-headquartered Indian Bureau of Mines is also part of the inquiry panel formed by the Odisha governnment.

Published on: Jan 25, 2023, 19:50:44 IST

By Debabrata Mohanty

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Bhubaneswar: The Odisha government has set up a committee headed by director of mines to inquire into allegations that iron ore from auctioned mines in the state was downgraded to evade export duty and cess payable to the Centre and state government.

A committee was set up by the Odisha government to look into allegations that iron ore exported by mining leaseholders was downgraded to evade export duty (REUTERS/Representative Image)

Officials said a representative of the Nagpur-headquartered Indian Bureau of Mines is also part of the inquiry panel.

Officials said the inquiry was ordered following allegations by BJP MP Aparajita Sarangi in September last year that mining leaseholders in connivance with mining officials, laboratory samplers and laboratories were passing off high grade iron ore as low grade ore.

The MP alleged that this malpractice also reflected in Odisha’s share of low-grade iron ore (with iron content of less than 58%) in exports increasing from 23.4% in 2018-2019 to 70% in the next three fiscals ending in 2021-22.

Leaseholders do not need to pay export duty for selling low-grade ore outside the country.

Mining department officials said the certificates submitted by the leaseholders indicate the possibility of underreporting the iron ore grade. “There is also an anomaly in the ratio of lumps and fines that the leaseholders submitted in their documents which violates the IBM guidelines in this regard,” said a mining department official.

The officials said a report will be sent to the mines ministry in Delhi after the probe is completed.

ABOUT THE AUTHOR
Debabrata Mohanty
Debabrata Mohanty is a senior assistant editor of Hindustan Times who works as state correspondent from Odisha covering the state's politics, governance, public policy, natural disasters, environment and its society for close to three decades. With his long years of reporting from the state capital of Bhubaneswar, Mohanty has been known as one of the most experienced and credible journalists covering Odisha for the national English dailies. His reporting combines on-ground detail with deep institutional knowledge detailing the state's changing politics, governance issues, administrative reforms and the functioning of its public institutions. He has regularly reported on issues ranging from legislative developments and public policy implementation. Politics is his core areas of expertise as he closely tracks Odisha's political landscape, including the rise and transformation of the Bharatiya Janata Party (BJP), the Biju Janata Dal (BJD), the two principal political parties in Odisha. His long association with the state's political establishment enables him to write on contemporary developments in a larger political context. Mohanty takes a deep interest in writing human interest stories, environmental issues and documenting the impact of cyclones, floods, heatwaves, and other climate-related events in one of the most disaster-prone states. His coverage extends to public health, governance reforms and stories on accountability of government institutions. Before joining Hindustan Times, Mohanty worked with The Indian Express, Mail Today, and The Telegraph, where he covered at least six general elections and as many assembly elections. In 2007, he was selected for the prestigious Chevening Young Indian Print Journalist Programme at the University of Lincoln, United Kingdom, where he received advanced training in print journalism. In 2009 he won the Press Institute of India-International Committee of Red Cross award on conflict reporting for his on-ground reportage of 2008 Kandhamal riots.Read More

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