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CFNR alleges ‘wrongful trading’ of iron ore

Staff Reporter

BHUBANESWAR: The Centre For Natural Resources (CFNR), a Bhubaneswar-based organisation, has alleged ‘wrongful’ trading of iron ore pointing towards financial irregularities involving several crores of rupees.

Addressing a press conference, CFNR president J. N. Patnaik here on Saturday alleged that Orissa Mineral Development Corporation (OMDC), operating under Steel Ministry, had traded about 58 lakh tonnes of iron ore between 2000 and 2004, during which there was ‘dubious transaction’ valuing over Rs 400 crores.

The CFNR demanded CBI inquiry into the alleged corruption in OMDC. The organisation presented several documents and “secret communication” between top officials over allegation of corruption to establish its charges at the press conference.

An official communication made by Kashi Nath Pandey, Chief Vigilance Officer of Bird Group of Companies, which is under administrative control of the Ministry of Steel, said the allegation of corruption had taken serious proportion in the eyes of local authorities, the officers and employees of OMDC, who felt helpless in front of the established contractors.

"The organised theft is going on to the tune of Rs 100 crores to Rs. 50 crores per annum as per informal estimate of local authorities.

The reckless theft is causing loss to treasury and creating social nuisance and mafia in the area," the copy of the communication handed over to media said.

It said the OMDC was the biggest and richest mining company in the country under non-reserve category and sitting on the best of the iron ore reserves in the country.

Mr. Patnaik alleged that guidelines of Indian Bureau of Mines were also violated in relation to fixation of rates.

After the Orissa Government took a decision not to lease out mines in favour of any one who did not intend to set up manufacturing plants for value addition, the OMDC had taken an easy option and established 100 tonnne per day capacity sponge iron plant, he alleged.

"OMDC could have set up a steel plant. Moreover, there was no clear-cut proof as to the quantum of investment made in setting up this plant.

When the then steel minister was saying it to be Rs 14.67 crore, as per the statement of OMDC authorities, it was Rs 13.82 crore. If the then Chairman cum Managing Director was to be believed, it stood at Rs 11 crore," CFNR President said.

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