Bhubaneswar, Feb. 21: Justice M.B. Shah Commission’s recommendation for a CBI probe into mining scam has begun to haunt the state government with the Congress deciding to raise the issue as one of its poll slogans.

However, the state government, in its action taken report, said there was no need of investigation by the CBI as the vigilance department had properly done the investigation.

Justice Shah, in his report, said minerals worth of Rs 2,000 crore were mined between 2003 and 2010 from the Joda mining area alone. “The illegal mining can be visualised from the pits, dumps and other materials. Apart from it, the iron and manganese ores have been extracted and sold from government forestland without any authority or permission. The offenders should be prosecuted by holding necessary investigation by the CBI,” Justice Shah observed.

The commission further said that because of super normal profit due to export of iron ore, large-scale of illegal mining activities had taken place. “Such illegal mining activities cannot take place without the support of the officers or collusion between the officers and mine owners,” Justice Shah observed.

However, the state government said: “It is not a fact the CBI alone has the expertise to investigate the cases related to mining scam, violation of forest, environment pollution control law and arms act. There is no constraint for the vigilance department owing to shortage of logistics or expertise,” said the state government in its action report and argued that the state vigilance had already chargesheeted 25 persons.

The commission observed that there was a collapse of government machinery and it looked to be ineffective and helpless in front of mining mafia, politicians, mighty lessees and some corrupt officials. Large-scale mining went on during 2008 to 2010. However, the state government said there was no collapse of government machinery and huge quantity of iron ore seized and the accused were arrested. It has further argued that demand has been raised against the lessee to pay the price for the excess ore.

The commission also raised the issue of how the mines were being operated under the deemed extension provision. Out of 192 mines, 147 are running under deemed extension for reasons best known to the concerned authorities, the applications for renewal are not dealt with and decided within prescribed time, the commission said.

But, the state argued that only 41 iron and manganese ore mines, which are having requisite clearances, were in working condition. Steps will be taken for refusal of renewal of mining lease. The state government said there was no systemic failure in implementing the MMDR Act, 1957.

With a view to reducing the impact of large-scale mining on the environment and infrastructure, the state government has decided to put a provisional cap in Joda and Koira Mining circles 44MTPA and 13MTPA during 2013-14 for production and despatch of minerals.

The state government also said it would go for e-auction of iron ore.

The Society of Geoscientists and Allied Technologists today came out in support of the state government and said unlike in other states, a system of mineral administration was in place in Odisha.

Advisor to the society B.K. Mohanty said: “There should not be any ban on mining operation — which would jeopardise the mineral-based industries.”

The association argued that the conduct of the gram sabha should not be considered as the ultimate deciding factor for the operation of the mines. “All efforts should be made to continue mining operation, taking timely decision to obtain all required statutory approvals,” he said.