318 mining lease proposals still stuck

The government might face a massive increase in litigation, with companies knocking on the doors of various courts

Re-awarding of licences for 318 mines across the country law are stuck at various levels of the central and state governments.

If these are not granted by January 2017, the government might have to face a massive increase in litigation, with companies knocking on the doors of various courts.

Licences for these mines were given under the earlier law; a new one, taking effect in January 2015, stipulated that all licences be granted through only auctions by respective state governments. However, if any company was issued a letter of intent by the state government under the old law, the licence for that block should be granted by January 2017.

Similarly, if any mining proposal had been given a green light by a state government under the earlier law but was then stuck with the central government, the licence must be issued by January 2017. The deadline of two years has been mentioned in the new law itself, the Mines and Minerals (Development and Regulation) Amendment Act, 2015.

In all, 98 proposals are stuck with the Union ministry of environment and forests. The mines ministry has been repeatedly pressing the former to grant the clearances before the deadline. Another 48 proposals are yet to be given the statutory mining plan approval by the Indian Bureau of Mines, a body reporting to the Union mines ministry.

Another 172 mining proposals are stuck with state governments, yet to provide land clearances, etc.

The Madhya Pradesh government, for instance, is yet to grant a licence for 48 blocks. The Odisha and Jharkhand governments are yet to decide on 35 and 30 blocks, respectively.

The Centre had written to states in March to expedite such clearances.