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TNN reported that the centre has taken a tougher stand on illegal sale of iron ore. It has asked Odisha and other states to ensure that iron ore extracted from mines leased out for captive use is not sold either in the country or abroad.

 

 A September 19th 2012 communication issued from the ministry of mines to all state governments stated that "The entire ore produced in the mining operation shall be used exclusively for own consumption in iron or steel making and cannot be either sold in India or exported to other countries."

 

 The letter attributed the decision taken by the Centre to a suggestion by the Jharkhand government.

 

 The Jharkhand government had suggested 'imposition of special condition under Rule 27 (3) of the MCR 1960' on sale or export of iron ore for all mining leases proposed to be granted or renewed, who had been given preference in allotment by invoking special reasons under Section 11 (5) of the MMDR Act 1957 or by invoking Rule 35 of MCR 1960 read with Section 11 (3) of the MMDR Act 1957. The mines ministry communication asked the state government to take immediate action to ensure that the special condition is imposed.

 

 Officials said the Centre's letter will have not much bearing on Odisha as the number of iron ore mines so far allocated for captive use is quite less.

 

 A senior official in the mines department said that "Of the nearly 300 iron ore mines, nearly 150 are working. Very few of them have been given for captive use."

 

 He said most of the iron ore mines are used for trading purpose, which violating all laws extracted ore worth thousands of crores of rupees continuously for years with full knowledge of all government agencies resulting in India's mega mining scam.

 

 The letter coming in the backdrop of the recent coal scam is however seen here in the official circle as an attempt on the part of the Centre to appear clean in the matter of large scale siphoning and corruption in natural resources.

 

 A senior official said that "Decision on mining lease involving major mineral resources like iron ore and coal is finally taken by the Centre. But the state cannot abdicate its responsibility in protection of these resources, which have not been done in the state resulting in the scams."