Odisha approves lease extension of 26 mines

24 Apr 2017

Miners are required to execute lease deeds with the state government within a span of 90 days

The state government has approved the lease extension of 26 mines under the new Mines and Minerals (Development & Regulation) Amendment Act, 2015 imposing certain conditions on the lessees for compliance. The renewal of operations of these mines, which includes 22 iron and manganese ore mines, can add up to 32 million tonne of iron ore output.

“On the basis of recommendations made by an inter-departmental panel, the chief minister’s office has approved the extension of 26 mine leases in the state. The government will shortly come out with a notification to this effect,” said a senior official at steel & mines department.

The extension of operations of the 26 mines has come with some riders. All such lessees have to comply with the Supreme Court order to be pronounced in the final disposal of the cases relating to these mines as well as pending orders on recommendations of the MB Shah Commission of enquiry and the central empowered committee (CEC) on illegal mining in the state.

Further, the lessees have to act in compliance with the relevant order of the Odisha High Court (HC) in cases pertaining to the 26 mines. The HC had directed the state government to extend the operations of these leases on or before April 27. The next hearing on the case is scheduled on April 29.

Mine owners, who stand to be benefited from the government decision, are Tata Steel, KJS Ahluwalia, Mid East Integrated Steel Ltd, Kaypee Enterprises, Kalinga Mining Corporation and K N Ram Ltd to name a few.

The recommendation for reopening of these mines was made by an inter-departmental committee headed by development commissioner U N Behera with secretary, steel & mines and director of mines as its members. In the list of 26 mines, there are 22 iron and manganese ore mines that were affected by the Supreme Court order in May last year. The remaining four mines whose cases were recommended are limestone and dolomite leases.

The apex court had ordered closure of 26 mines in the state which were operating under the deemed lease extension clause of the Mineral Concession Rules (MCR), 1960. While the government had passed express orders for eight mines (including four leases of Tata Steel, three held by SAIL and one of state owned Odisha Mining Corporation), similar orders were not issued for 18 other mines Out of eight mines, four had obtained all clearances. However, statutory clearances were pending in case of four of the mines of Tata Steel- Bamebari, Katamati, Joda East and Joda West.

In that May 16 order, the top court had asked the Odisha government to take decision on the fate of 26 iron and manganese ore leases within six months. The state government had sought two extensions from the apex court to decide on the cases of these mines, the latest being in February this year. The government pleaded that due to the changed provisions of the new MMDR Amendment Bill (now an Act), 2015, more time was needed to dispose of the cases.

The new law has done away with the provision of renewal of mining lease and instead, all leases awaiting renewal were automatically allowed to operate till 2020 in case of merchant mines and up to 2030 for captive mines, as per Section 8(A)5 and 8(A)6.

Source – business-standard