Odisha extends mining licence for errant firm
18 December 2017
The Odisha government has granted Serajuddin and Company an extension on its licence to mine iron ore at Balda at a time the company faces penalty for alleged illegal mining practices.
Sushant Kumar Nayak, Deputy Director of Mines, confirmed to The Indian Express that Serajuddin and Company was among 151 mining leaseholders that were issued showcause notice by the state government for alleged illegal extraction of minerals.
The notice was sent to companies that violated one or more conditions, such as operating without environmental clearance or forest clearance or extracting in excess of approvals granted to them, state Mines Department officials said.
“The mining lease was extended, as per Mines and Minerals Development and Regulation Act 1957 Act, up to March 31, 2020,” said Sushant Kumar Nayak, deputy director of mines at Joda mining circle. “The existing mining lease was up to December 2, since 20 years.”
The permission to extend the licence has sparked a debate on the interpretation of a Supreme Court judgment on a writ petition filed by the NGO Common Cause, raising questions on illegal mining in Odisha.
On August 2, the apex court had ordered errant mining companies to pay 100 per cent of the revenue generated from illegal practices.
The order states, “The amounts determined as due from all the mining leaseholders should be deposited by them on or before 31st December, 2017. Subject to and only after compliance with statutory requirements and full payment of compensation and other dues, the mining leaseholders can restart their mining operations.”
Leader of Opposition in Assembly Narasingh Mishra told The Indian Express, “The lease was expiring on December 2 and was renewed in a hurry on the evening of December 1. How could the lease be renewed when a penalty of Rs 750 crore has been imposed on the company, and when the (M B) Shah Commission has held it guilty for violating different laws?”
“Obviously, the SC order means a lease, which is in existence, will continue up to December 31, provided the lease is valid, Mishra said. “Renewal or extension is a new licence. Which court has given this extension? The SC has not given extension on any lease which is expiring,” Mishra said.
Director of Mines Deepak Kumar Mohanty said, “Whichever mine is in operation, they can be stopped only after December 31 if they don’t pay. There has been no categorical order from the SC that the running mines should be stopped forthwith.”
Nayak also confirmed that the extension was granted on “second renewal of their (Serajuddin’s) licence”.
Prashant Bhushan, counsel for Common Cause, clarified that he was not aware of the specifics of the extension to the company. However, he said “Suppose the second renewal period is over, and they have granted an extension beyond, that may be illegal.”
Nayak also said that the company is not required to submit fresh environmental and forest clearances for the extension.
Bhushan said, “That is not correct. The SC has clarified that every renewal requires a fresh environmental clearance.”
Source: Indian Express