CEC meet today to discuss Rule-37 amendment

States including Odisha yet to submit comments

Amid non-submission of comments by all mineral bearing states including Odisha on the proposed amendment to Rule-37 of Mineral Concession Rules (MCR)-1960, the Central mines ministry has convened a meeting of the central coordination cum empowered committee (CEC) to deliberate on the matter.

The amendment to Rule-37 of MCR-1960 assumes significance in the context of Odisha where eight mine owners have been issued show cause notices on the statutory violation. The eight mining lessees that have been found guilty of violating Rule-37 are Indrani Patnaik, KJS Ahluwalia, RP Sao, Sarada Mines, Aryan Mines (Koira), Mala Ray Mines (Keonjhar), Kabita Agrawal (Koira) and Mideast Integrated Steel’s (Mesco) Barbil mines.

Six of these eight lessees have already moved the revision authority under the Central mines ministry and secured orders that have barred the state steel & mines department to pass any order in their cases.

The Central mines ministry has asked all mineral bearing states to submit their comments to the proposed amendment immediately.

Presently, Rule-37 of Mineral Concession Rules debars any lessee to assign, sub-let, mortgage or in any other manner transfer the mining lease or any right, title or interest therein without previous written consent of the state government.

According to the proposed amendment, which is expected to dilute some of the strongholds of the rule, a bonafide arrangement, contract or understanding between the lessee and any other person or body of persons or a company shall not be construed as financing to a substantial extent or substantial control of lease if four conditions are fulfilled. First - the arrangement between the lessee and any other person or body of persons is duly registered. Second- any financing by a person or a body of persons other than lessee in the arrangement does not exceed 50 per cent.

Third- the arrangement for undertaking any mining or exploration activities does not allow sale or consumption of the minerals won in mining operations by such person or body of persons or a company in the arrangement. Lastly, the person or a body of persons or a company who has entered into the arrangement with the lessee is paying service tax. Besides Rule-37 amendment, steps taken by states to prevent illegal mining, implementation of Rule-45 of Mineral Conservation Development Rules (MCDR)-1988, mining tenement system, framing of model state mineral policies and royalty issues also figure in the agenda of the CEC meet.