Dantewada administration imposes Rs 1,620.5 crore fine on NMDC for mining law violations

The Dantewada administration has imposed a Rs 1,620.5 crore penalty on the National Mineral Development Corporation (NMDC), a central PSU, for alleged violation of mining laws, officials said on August 31. 

The PSU has termed the move “completely inappropriate” and claimed the penalty was imposed “solely and blindly without considering the facts and circumstances in the case”, PTI reported. 

The NMDC has mining operations in Bailadila hills in Kirandul and the Bacheli area of Dantewada in the Bastar region in Chhattisgarh. 

Dantewada collector Mayank Chaturvedi directed the NMDC to deposit the penalty amount within 15 days. 

The letter, dated August 29, stated that iron ore mining leases have been approved for Deposit No 14 ML in an area of 322.368 hectares, Deposit No 14 NMZ in 506.742 hectares and Deposit No 11 in 874.924 hectares in Kirandul village under Bacheli tehsil of Dantewada to the NMDC. 

Chaturvedi wrote that the NMDC’s clarifications to the show cause notices issued by district administration were unsatisfactory. 

NMDC has violated section (4)(1) of the Chhattisgarh Mineral (Mining Transportation and Storage) Rules, 2009, and as per Rule (5) of the Chhattisgarh Mineral (Excavation, Transportation and Storage) Rules, 2009 and section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957, a total penalty of Rs 1,620.5 based on market value and royalty of the mineral is imposed, the letter said.