Slapped with Rs 1.6K cr fine, NMDC refutes reports of mining laws violation

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Slapped with Rs 1.6K cr fine, NMDC refutes reports of mining laws violation



RAIPUR : A day after the Dantewara district administration slapped a fine of Rs 1,620 crore on the nation’s largest iron-ore enterprise, National Mineral Development Corporation(NMDC), for allegedly violating mining laws, the State-run company on Saturday termed the move “inappropriate, being done blindly without considering the facts and circumstances”.Responding to the notice on alleged violation of iron ore transportation without a railway transport pass, the Navratna enterprise asserted that it has been operating with a valid mining lease, approved mining plan, consent to establish and operate, and environment and forest clearances from the ministry concerned.The NMDC stated that it would submit a suitable reply to the Dantewada collector. In addition to the two iron-ore complexes in Dantewada (south Chhattisgarh), the NMDC operates one at Donimalai in Karnataka.In the notice served to the NMDC, Dantewada collector Mayank Chaturvedi directed it to deposit the penalty and compensation amount within 15 days, saying the mining giant’s clarifications to the show cause notices issued by the district administration on August 12, 2024 were unsatisfactory.As per the notice, the NMDC violated the Section (4)(1) of the Chhattisgarh Minerals (Mining, Transportation and Storage) Rules 2009. Consequently, as per Rule (5) of the said rule and under Section 21 (5) of Mines and Minerals (Development and Regulation) Act 1957, the penalty based on the market value and royalty of the mineral amounted to `1620.49 crore.The NMDC contended that as per Rule-2, sub-rule 1(d) of Chhattisgarh Mineral (Mining, Transportation and Storage) Rules 2009, the deposit-wise, grade and product advance royalty is being paid through the khanij-online portal to the Chhattisgarh government, following which the e-permit numbers are being generated. “There is no violation of any mining rules,” the firm said.



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