Odisha to defend mines reservation for OMC

The state decided to reserve areas bearing iron ore, manganese ore, chromite ore and bauxite for undertaking prospecting or mining operations through OMC

The Odisha government will defend its stand to reserve all balance mineral bearing areas of the state not already held under any prospecting licence (PL) or mining lease (ML) in favour of its mine PSU Odisha Mining Corporation (OMC).

"We are going to write to the Union mines ministry soon that the state government would stick to its resolution for reservation of all balance mineral bearing areas for OMC. The reservation for OMC will be on a case-to-case basis and for every reservation, we will take approval from the Centre”, said a top official of steel & mines department.

Through its resolution dated September 18 last year, the state government decided to reserve areas bearing iron ore, manganese ore, chromite ore and bauxite for undertaking prospecting or mining operations through OMC.

But the resolution was struck down by the Centre pointing out that it does not conform to mining laws.

"The state government cannot reserve any area not already held under any PL or ML for undertaking prospecting or mining operations through a government company or corporation owned or controlled by it, unless it has the approval of the Central government as laid down in Section 17 (A) (2) of Mines and Minerals (Development & Regulation) Act-1957. The decision to reserve the area in question in favour of OMC without seeking approval of the Central government is not in consonance with Section 17 (A) (2) of MMDR Act”, Rokhum Lalremruata, director, Union mines ministryhad written to the Odisha steel & mines secretary in February this year.

The ministry had also advised the state government to decide all pending applications as per provisions of MMDR Act and rules framed there under.

The Society for Geoscientists and Allied Technologists (SGAT) a body dedicated to promotion of mineral development had opined that reservation of mineral bearing areas in favour of the state controlled miner will dampen mineral development and shy away potential investors.

In a memorandum submitted to the M B Shah Commission of inquiry probing into large scale mining of iron ore and manganese without lawful authority, SGAT said, “Laying bare large mineral areas through reservation will encourage illegal mining, destruction of forest growth and provide safe haven for mafia elements and Naxals which the state government will certainly not like to happen.”

The reservation of mineral bearing areas in favour of OMC is beingplanned to ensure value addition and also maximum benefit for thelocal communities from extraction of minerals. The state government isemphasizing on value addition as it is expected to create employmentopportunities, generation of revenues and setting up of ancillary anddownstream industries.

It may be noted that the expert committee constituted by the stategovernment to broad base revenue had recommended leasing out of allmines containing iron ore, chrome ore, manganese and bauxite in favourof OMC. OMC, in turn, would supply the required quantum of rawmaterials to various industries, the expert panel suggested in itsreport.