SC grants time for lapsed mines

The apex court allows an extension of two months to Odisha govt for deciding upon the cases of 18 lapsed iron and manganese ore mines

The Supreme Court has allowed an extension of two months to the Odisha government for deciding upon the cases of 18 lapsed iron and manganese ore mines.

Last week, the state government had requested the top court for grant of additional time of two months to dispose off the cases of these mines, citing introduction of new provisions in the Mines and Minerals Development and Regulation (MMDR) Amendment Ordinance, 2015. This is the second time the government pleaded for extension to dispose off the cases of these mines after the previous extension granted by the apex court expired on February 20.

In its interim order dated May 16 last year, the top court had asked the Odisha government to take decision regarding renewal of 26 iron and manganese ore leases within six months and had suspended operations of these mines. At the time of the apex court's order, these leases were awaiting second and subsequent renewal.

Complying with the Supreme Court's (SC) order, the state government passed express orders to facilitate resumption of mining activity at eight mines. But no decision was taken on cases of the balance 18 mines for which the state government had sought more time. Responding to the state government's request, the top court had extended the deadline till February 20.

In the latest petition filed this month, the state government said it had taken enough steps to comply with the SC order and had even sent show cause notices to leaseholders for cancellation of the leases. However, the new provisions in the MMDR Amendment Ordinance had crippled its hands, the government stated.

In the Mining Ordinance that came into effect on January 12, the provision of renewal of mining lease was done away with and instead, all leases awaiting renewal were automatically allowed to operate till 2020 in case of merchant mines and up to 2030 for industrial users having captive mines, as per Section 8 (A) 5 and 8 (A) 6 of the Ordinance, subject to fulfillment of lease conditions.

In the petition, the state government said it needs at least two months to scrutinise whether lease conditions of the remaining 18 mines were violated or not as per the MMDR Ordinance.

Ahead of the promulgation of the Mining Ordinance, the state government through a Cabinet decision, decided to auction all mining leases awaiting second and subsequent renewal to shore up revenue from the mining sector.

But the state government's decision was contested by a few mining lessees in the Odisha High Court that has granted stay on the move till March 11.