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In Goa, which is the largest exporter of iron ore in the country, most operations are carried out from Mormugao and Panaji ports. The Mormugao port is one of the busiest in the country and a substantial portion of the iron ore exported is sourced from Karnataka.
The iron ore from Karnataka is blended with that from Goa to improve its Fe (iron) content and thus its grade. While studying the mining scam, the Karnataka Lokayukta found some discrepancies in the data obtained from the customs offices in Mormugao and Panaji.
It was found that manual as well as electronic shipping bills were issued from Mormugao and many of the manual bills could not be traced. Moreover, it was observed that the figures of exports of iron ore of Karnataka origin, as depicted in shipping bill data of both the ports, were grossly underreported. This may be due to the fact that a major portion of blended iron ore has been shown to be originated from Goa. Hence, the custom data cannot be relied on, as it does not accurately reflect the quantum of iron ore of Karnataka origin exported from Goa.
Iron ore is transported from Karnataka to Goa for both domestic consumption as well as export. But, the Department of Mines and Geology permits do not clearly specify domestic and export destinations, Therefore, this data also fails to point out the quantity of iron ore for which permits were issued.
Further, a few large exporters have mining leases in Karnataka as well as in Goa. Besides, some exporters also have steel units in Goa. Because of this it is difficult to accurately identify whether the issued permit is for export or for domestic consumption in Goa.
The permits issued by DMG do not clearly indicate the mode used for transport. However, it is observed that a major quantity of the iron ore is transported to Goa by train.
Two major rail destinations in this regard are Tinaighat and Soverdem, and a report points to iron ore received at these stations from April 2006 to March 2011. It shows monthly permits issued to the consignor with Goa as destination and also the quantity of iron ore transported.
To crack this nexus between Karnataka and Goa there is a need to compare the records of railway and the permits issued by the mines department. But it is amply clear that there is no mechanism to verify the legality of iron ore received at these railway stations.
Action should be taken by railway authorities to verify documents with regards to transportation of iron ore. It is computed that prima facie 45,59,365 metric tonne of illicit iron ore was transported through railways during the period 2006-07 to 2010- 11.