JAP urged the Govt . to ask Tata Steel to pay premium on the existing leases.

JAP urged the Govt . to ask Tata Steel   to pay  premium on the existing leases.

 - Government loosing Rs.4,20,000 Crores on premium -

By Bijay Mishra
Bhubaneswar, 25-9-21

“Tata Steel , which has placed the highest bid for the Gandhalpada iron ore block in the ongoing mines auctions in Odisha at a premium of 141.25%, most pay the same  premium on the existing leases.” - demanded “Jana Adhikari Parishad”.

Writing a letter to the Chief Minister, Odisha , Mr Bijay Parida , President of JAP told that , the aggressive bidding for the Gandalpada iron ore deposits in the Keonjhar district has surprised all . Gadalpada has attracted a premium of 141.25 % which a definite subject to think of rationality. Gandalpada is a virgin mines which can be operated only after obtaining the forest and environment clearances.

Tata Steel has been enjoying five iron leases in Odisha for almost 100 years holding more than 49 sq.km. Government of Odisha extended these leases in 2015 free of cost i.e. no premium would be paid by TATA Steel for fifteen years. “When Tata Steel is ready to pay 141 % for a virgin mines, they can pay at least the same if not more for a the working mines under their operation.”- told Mr Parida .

Assuming that Tata Steel pays 140% of premium and average IBM price at Rs.5000/t for a combined mining capacity of 40 MTPA of five mines in Odisha, the State exchequer is losing a premium of Rs.28,000 crores annually (40 MT x Rs. 5,000/t x 100%)

In a period of 15 years, the total loss to Government’s exchequer is Rs.4,20,000 Crores

“The State Govt must consider to impose the premium on the captive mines who were granted extension as per MMDR (Amendment) Act, 2015. The present bidding is an eye opener for the society.”- told Dr Sudhi Ranjan Dash , President, “Assured “. Dr Dash questioned that ,  why such huge mines were provided to Tata Steel free of cost?  He urged the Government to ask Tata Steel to pay the premium on the existing leases.