Bhubaneswar: The Odisha government has fallen short of the target of realising Rs 17,576 crore as "compensation" from mine owners guilty of violating forest and environment laws.

The total amount it could manage till December 31, the deadline stipulated by the Supreme Court, was Rs 8,223 crore. The shortage is to the tune of Rs 9,353 crore.

These mining lessees had illegally extracted iron and manganese ore between 2000-01 and 2010-11. The Odisha government on Monday issued notices to seven mine leaseholders, who had failed to pay the fine, to stop operations in tune with the court order.

Odisha steel and mines minister Prafulla Mallick said: "The Supreme Court is directly monitoring the case. We have already issued notice to these mines to stop operations." He also made it clear that the money collected from the lessees would be used to develop the mining areas.

Following a petition about rampant loot of minerals, the apex court had taken up the case and concluded that there was mining in violation of environmental and forest laws. According to the court-appointed Central Empowered Committee report, the miners had illegally extracted 215.5 million tonnes of iron and manganese ore between 2000-01 and 2010-11.

Mines director Deepak Mohanty said: "We have asked 131 leaseholders to pay penalty. Of them, 72 mine leaseholders, including 43 with working mines, paid the fine. Seven working mines that had failed to pay the fine stopped operations since Monday morning following orders."

The mines that have stopped working include the state-run PSU Idcol's Roida mine, Essel's Koira mine, Mideast's Roida Mine, Serajuddin Co's Balda mine and mines of Omm, Crop Resources, National Enterprises and Nesco. These seven had arrear dues to the tune of around Rs 4,000 crore to the Odisha exchequer.

Mohanty said: "We will submit the status report with the committee within two to three days. Later, the report will be placed before the apex court. The court has listed January 17 for hearing. Whatever the Supreme Court says will be followed."

Eastern Zone Mining Association general secretary Prabodh Mohanty said: "Many mine owners have not been able to pay their dues as their mines have already been closed. They are passing through hard times. Despite being closed, the owners are still paying their workers and hopeful that they would again be able to open their mines. We are quite hopeful of a favourable order from the court."

The association also urged the Odisha government to take a "positive stand" on the issue. "Closure of mines will not solve the issue. Livelihood of thousand of people, who depend on mining, will be jeopardised. We are hopeful that mining leases of closed mines will be renewed," said Mohanty.