OMBADC Fund – Where it is available today ?

 

OMBADC Fund – Where it is available  today ?

• ·         Only 1% of total fund has been utilized  for  development of tribals in the mineral  bearing districts within 4 years.

• ·         Rest 99% of amount has been withdrawn and invested without legislative sanction.

• ·         State Govt. has taken Rs. 3000 crore  as loan  during COVID period.

• ·         No proper  transparency  is maintained  in the  functioning of OMBADC.

• ·         OMBADC  does not  have  any robust mechanism  for  effective  planning  for  utilization of  fund.

• ·         Fund  simply  transferred  to line  Dept.  to spend  on their  wish.

Odisha Mineral Bearing Areas Development Corporation (OMBADC), an SPV, is initially supported by A-NPV portion (about 40%) of ‘Adhoc CAMPA’ created by Hon’ble Supreme Court for the damage done to the Forests and Environment, mainly due to Mining Related activities. Large tracts of forestlands were handed over for ‘Non-Forest’ use to the mine lease holders, which in Kendujhar alone rose to over 24000 Ha out of a total of over 33000 Ha of mining Lease areas. While the main portion of CAMPA was to be mainly utilized for ‘rejuvenation of denuded forests, creation of new forests (CA), and protection of wild life (and thus moderate the moisture and temperature, raise the u/g water table, hold the soil tight against erosion, and restore the homes for ants/ avian to elephants, simultaneously, producing oxygen for all animal life through photo synthesis); the smaller portion was to be for “Tribal Welfare and Area Development” as mandated by SC, both of which  were most seriously affected by the most irresponsible exponential growth of Mining industry.

 Hon’ble SC, while approving the creation of the above SPV named OMBADC on 30 Dec 2014, had thoughtfully specified 8 items to be targeted for integrated development (of tribal Welfare and Area Development), which did NOT include Housing, and forestry which were to be financed from otherwise by PMAY, CAMPA, and even DMF. On 15 Jan 2015, SC released Rs 869 Crs (50% of a Total A-NPV collection, from out of gross CAMPA fund), in what is treated as ‘First Phase’ by GOO and OMBADC.

 Subsequently, SC Court in their judgment dated 02 Aug 1917,, after 4 years of prolonged hearing, listening to the finest legal minds of India, representing the miners of Odisha, decided to impose a compensatory penalty, under Sec 21(5) of MMDR Act 1957.  SC held that the minerals raised by the offending Iron Ore Mine Lease holders of Odisha, violating or outside the limits of “Environmental Laws”, actually belonged to the State. This unlawfully raised minerals to be returned to the Nation, or if the same has been sold, the proceeds of the same to be refunded.

 Thus a frightening figure of 22.55 crore metric tons ‘unlawfully raised’ mineral (Iron ore + Manganese), was carefully quantified mine-wise by CEC, and accepted by Govt of Odisha as well by the miners and SC. For some unknown reason, the proposal of Indian Bureau of Mines to arrive at a ‘Weighted Average Price’ of Rs 819/ton, (when prevailing ‘Pithead Price was around Rs 4500/-per ton), was accepted and thus the Penalty amount limited to RS 17,576.16 Crs. However, SC, in their wisdom, ordered that the penalty thus collected, also be entrusted to OMBADC, for the broad target of “Tribal Welfare and area development”, which GOO has treated as ‘SECOND PHASE’ programme of OMBADC.

1.   RTI queries revealed that by 30.9.20 , total penalty  amount  collected  and deposited in OMBADC is  Rs. 18,710.22 crores as  follows.

(Rs. In Crores)

Total  receipt  of funds  from 1.12.2017  to 30.9.20	16,528.65
Interest received  till 30.9.20	2,181.57
Total Fund  ( Fund + Interest)	18,710.00
Amount given to State Govt. on loan	3,205.00
Amount  invested  in ATB	13,250.00
Cost  value  of  investment  of fund  as on 30.9.20	16,455.36   (3,205.00+ 13,250.00)
Release  to different line  Dept	2,223.87
Advise  for  investment to the  Finance  Dept.  as  on 16.11.2019	380.00
Fund available in P & L A/C as on 31.12.2019	31.00

 

 In their order dated 29 Nov 18, SC also directed that this amount be utilized on priority in the districts of Kendujhar, Sundargarh and Mayurbhanj, under close scrutiny of their appointed ‘Over Sight’ authority and their officers. SC Order was possibly, both because almost the entire penalty amount was collected from the miners of these districts where maximum damage was done to the physical and social environment. This damage had to be restored/rehabilitated through an already established legal body like OMBADC, whose Memorandum and Article of Association were specifically approved by SC in Dec 2014.

2. Unfortunately, even in the PHASE I activities, the BOD of OMBADC spent the largest portion of their fund, Rs 402 Crs out of a total of Rs 869 crs  in BPGY (Biju Pucca Ghar Yojana) in early 2016, where the Citizens of Keonjhar district  observed gross distortion against Court direction of ‘Tribal Welfare and Area Dev’. Keonjhar Citizens’ Forum   has pointed out this in-equality in a letter to ‘Over Sight’ authorities on 04^th  dec 18.  

  In all these, the Citizens systematically observe that:-

a.     Govt. of Odisha has, with some initial hesitation, accepted the appointment of justice AK Patnaik as an ‘Over Sight authority’ to OMBADC (see para 9(a) of their affidavit dated 20 Oct 18.

b.   On 29 Oct 18, learned counsels were heard by SC before appointing Justice AK Patnaik as the  ‘Over Sight’ authority and directing a set of procedure including engaging few officers to assist him in his tasks.

c.    A reading of the  affidavit  of Chief secretary, Govt of Odisha , who also happens to be the chairman of OMBADC, shows an abnormal dependence on the suggestion of the Senior Defense Counsel who had led the defense the Mining Lease holders, responsible for bringing about such massive violation of ‘Environmental Laws’.

d.   While generally agreeing with the list of development activities   the Citizens, have the following additional suggestion:-

·         Phase 1 activities included Pucca houses (designated as Biju Pucca Ghar Yojana, mining, of Rs 1.3 lakh each) is avoidable since adequate funds are made available from PMAY.

·         Similarly, Phase I included ‘Afforestation’, which actually funded by CAMPA through Annual Plan of Operation by Forest Deptt. Even compensatory afforestation being undertaken in far off districts like Kalahandi, when actually forests are lost to non-forest activities here in our districts with multiple adverse consequences.

·         Assistance to ESI to make an ESI Hospital in Joda- Barbil- koida area where our bulk of mine workers, needing health care, are located.

·         Ambulance/ Sick reporting vehicles are to be positioned in each village, out sourced to one youth in the village.

·         OUAT campus at Kendujhar, is to be established in their present 272 acres of ‘Extension Centre’ with short knowledge-courses on floriculture, Horticulture, sericulture, medicinal plantation, cash crops, optimization of water use, farm machineries, organic farming, and adequate knowledge on plant medicine, GM Crops, soil health, cold storage etc.

·         Veterinary and animal Science Institution to spread current knowledge on dairy farming, poultry farming, goatery, Piggery, inland fishery and such other skill for our youth

·         A Institution for Heavy Earth Moving and Mine machinery training in operation and maintenance to create avenue of employment for our youth.

·         Revival of ‘Odisha Tea Plantation ltd OTPL’ in Banspal Block, which produced best quality leaf tea, 16 years ago, with our own skilled ‘Adivasi’ labour.

·         Institute of Earth science with faculty in Soil Science, forestry, climatology, meteorology and atmospheric Science, Hydrology in both surface and underground resources in either NOU campus or in GCE, Kendujhar, and thus ctreae ‘Centre of Excellance’ in these fields.

·         Incentivize commercially viable Rail projects by ‘Parking’ some funds through ‘Odisha Rail Projects ltd’ for Kendujhar, Mayurbhanj and Sundargarh Iron ore belts.

·         Completion of Kanupur major Irrigation project for Upper Baitarani basin, not only supporting Irrigation of over 48000 Ha, but also provide adequate source of water for the ambitious ‘Tap Water’ project to rural areas.

·         Upgrading the power distribution system as well as bring in solar power generation in a bigger way. Citizens suggest that the entire irrigation canals be given to installation of Solar panels, like in  Gujurat.

·         Modify one secondary school in each block, as skill dev school, to utilize the existing infrastructure, and if possible, out source them.

·         Incentivize cottage industry: bamboo, pottery/ceramics, Bodi, pickle etc

·         Forest products (NTFP) marketing facility, mainly honey, lac, Sal leaves and seeds, orchids, mahua etc.

·         Crematoriums, preferably ‘electric’, in every village/ GPs, to save our forests, and creation of ‘Smriti Vatika s’.

·         A guest house cum village community hall in each village., and restore Tribal culture.

·          Replacement of current ‘Huttings’ by proper ‘Mining Villages’, with ideal health and education and other facilities.

·         Planned Urbanization with proper and adequate civic facilities.

·         All weather roads to all villages.

 

3.    On another RTI query, the  PIO, Director  of  Mines, Govt. of Odisha  has provided  information dated 31.1.20 list of Mining lease  holders  with address who paid  compensatory penalty  as per order  of  Supreme Court during 2017, amount paid  each of them with date of payments.  The  details  of information is  available  in the  following  link.   A total amount of Rs. 15326,63,88,256 has been  collected  as compensation and  penalty  as per  direction of the Supreme  Court.

 https://odishasoochana.blogspot.com/2020/03/compensation-and-penalty-collected-from.html

 

4.   As per  press  release  made  from the  Chief  Secretary’s office  ( reported  in media TOI dt. 17.9.20) , the Projects  worth  Rs.1080.92  crore  has so far been sanctioned  under OMBADC  in sectors  like housing, drinking water, skill  development etc.  Counter  to  this press  release, it was found that   as per RTI  information provided  from the  office  of OMBADC  dt. 28.8.20,  total amount  of Rs. 1143.11  crore  has already  been released  to  different line departments  which is  as follows  in details.

 

Sl.No	Sector	Name of the Deptt	Amount released
1	Drinking water Supply  through piped water ( Rs. 4229.05 +  Rs.115.59)= Rs.4344.64  crore	Panchayat Raj Dept.	Rs. 445.25  crore
		Housing and Urban Development  Department	Rs. 5.72 crore
2	Education (  including training  & Education for Skill Development) Rs. 1941.10 crore	School and Mass Education Department ( State Project  Director, Odisha Adarsh Vidyalaya Sangathan )	Rs.72.88  crore
		ST & SC Development ( Odisha Tribal Development Society )	Rs. 18.015 crore
		Skill  Development & Technical Education  Dept. ( Odisha Skill  Deeelopment  Authority – SANKALP and DTET, Odisha	Rs. 14.17 crore
3	Health ( including Anganwadi centres ) Rs. 2749.65 crore	WCD &MS ( Strengthening  ICDS  in different  districts	Rs. 275.65 crore
4	Livelihood  promotion (Rs. 53.50  crore)	Panchayat Raj & WR ( OLM)	Rs. 10.43  crore
		Dept. of  Agriculture	Rs. 3.86 crore
5	Rural Connectivity (Rs. 524.54 crore)	Rural Development	Rs. 30.11. crore
6	Environment  Protection and  pollution control Rs. 21.65  crore	State  pollution Control Board	Rs. 1.914  crore
7	Water Conservation  & Ground Water Recharge  and SMC ( Rs. 379.25 crore )	Forest & Environment  Dept.	Rs. 64.94  crore
		Housing & Urban Development  Dept.	Rs. 2.13. crore
		Total	Rs. 1143.11 crore

 

5.    On RTI Query about    details of  decision taken  by OMBADC  for  fixed Deposits ,  amount  of fixed  deposit in the  Bank  or  others  with  name of the  Bank ,  the  following information dt. 27.10.20  was  provided as  follows.

 

In the  meeting of BoD  of OMBADC , the administrator  of the Personal Deposit Account  will  work out  the investible surplus  and advise  Finance Department  for  investment  of the  surplus balance  in 91 days or 182 days  or 364 day Auction Treasury Bill ( ATB) . Accordingly  total amount  of Rs. 16,455.36 crore  has been  invested  through ATB.

6.   Issues  relating  to OMBADC  raised  by Keonjhar Citizens’’ Forum.

 

·      There is absolutely no ‘People’s  participation’ or ‘Bottoms up’ approach in the perspective planning and development; as specifically mandated in the Hon’ble SCs’ order on 02 Aug 17.

·       OMBADC does not have any group within itself for Planning for the future and all its actions are bases on adhoc requirement from Govt Depts. Financial planning is without any discipline without any legislative approval.

·      There  is no transparency  in the functioning of OMBADC and  implementation of programme,. From the inception OMBADC was treated by Govt of Odisha as just another Public sector SPV like OMC  or any other. The sanctity of an SPV created by Hon’ble Supreme Court was lost basically for two reasons. Firstly, Govt. of Odisha directed the offending Miners to deposit the penalty amount in Khorda treasury, instead of in a Public Sector Bank, as directed in the ‘A & M of Association ‘of OMBADC, specifically approved by Hon’ble SC. Secondly because the Chairman and Members of the Board of Directors were only the Senior Secretary level bureaucrats, with NO representation from the affected districts. Besides, all high level managers of OMBADC were from Govt of Odisha on short term deputation. Thirdly, as per the Finance Secretary of Govt of Odisha, a cheaply available loan/investment from this big SPV into Govt coffers does not need ‘Lagislative Sanction’.

Pradip Pradhan

M-9937843482

Date- 28.5.21