Surjagarh mining starts, truck caught for non-payment of royalty | Nagpur News

View of the mining area at Surjagarh hills in Gadchiroli

Nagpur: Iron ore mining, which had finally resumed at Surjagarh hills of Gadchiroli district without police protection, ended up with a consignment being caught by authorities for non-payment of royalty. The project which is expected to change the socio-economic situation of the area has been mired in troubles for years.
On last Friday, local villagers intercepted a truck carrying 19 tonne iron ore and reported the matter to district administration. It was found that the material was being taken away without paying royalty. Papers with the driver said the ore was being taken for sampling purpose. Sampling is done to ascertain the grade, on the basis of which royalty is paid. However, questions are being raised about need of taking as much has 19 tonne ore merely for sampling.
Gadchiroli collector Deepak Singla, who confirmed the development, said the company has been fined and the management has assured to comply. The consignment was being taken away without filing the mandatory online details.
An official in the district’s mining office said a fine of Rs25,000 has been levied on the company, also confirming that the truck was intercepted by the locals.
Iron ore mining in Surjagarh area of Naxalite-infested Gadchiroli has always been a controversial issue. The mining lease has been granted to Lloyds Metals and Energy Limited (LMEL). The company could not start full-fledged operations, mainly due to Naxal threat. Over the years, there have been incidents of burning of equipment and also killing of a company officer.
Lately, LMEL, which continues to hold the mining licence (ML), had outsourced the contract to mine the ore to Odisha’s Triveni Earth Movers.
When LMEL did the mining on its own, it required police protection at the site, which could be not be made available in continuity. This stopped mining operations for long periods. Triveni Earth Movers had started mining a month ago.
Sources said Triveni Earth Movers had agreed to carry out mining without police protection as it had experience of operations in other Naxal areas like Odisha.
Officials said LMEL also has earlier royalty dues of Rs2.65 crore. This is expected to be cleared soon. The operators have also agreed to repair the weigh-bridge so that material taken out can be measured properly.