Koida: Show-cause notices have been issued to as many as 65 iron ore mining leaseholders in Odisha for allegedly violating approved mining plans and manipulating ore grades.

According to official sources, a state-level enforcement squad carried out inspections which revealed that several mine operators were consistently downgrading the quality of extracted iron ore. This alleged malpractice led to reduced royalty payments and other statutory dues, resulting in significant losses to the state exchequer.

The notices ask the leaseholders to explain why their mining leases should not be terminated and their performance security forfeited. Inspections also flagged other alleged violations, including illegal sub-leasing and production beyond approved limits.

During the Budget session of the Odisha Legislative Assembly, Steel and Mines Minister Bibhuti Bhushan Jena informed the House that audit findings had pegged the revenue loss at ₹4,162.79 crore due to under-assessment of iron ore grades. He noted multiple instances of “grade reduction” were detected across iron ore and manganese mining blocks, leading to differential royalty claims worth hundreds of crores.

The minister further stated major cases of grade manipulation were reported from the Koida and Joda mining circles. He also acknowledged audit observations indicating that some operators misclassified high-grade minerals as low-grade ones to evade royalty and other statutory payments.