Mining industry body urges ministry to extend non-captive leases till 2030

The validity of such leases is to expire on March 31, 2020 as stipulated by the amended MMDR Act, 2015

Fearing the availability of limited iron ore blocks for auctions, the Federation of Indian Mineral Industries (Fimi) has appealed to the Union ministry of mines to extend validity of non-captive leases till March 31, 2030.

The validity of such mining leases is to expire on March 31, 2020 as stipulated by the amended Mines and Minerals (Development & Regulation) MMDR Act, 2015.

According to Auction Rules, only those mineral blocks explored up to the G2 level can be put to auction. State-run mining PSUs, which have been authorised to undertake prospecting have to gear themselves to explore areas to be allocated to them. Besides, the dependency on reports of exploration agencies like Mineral Exploration Corporation Ltd (MECL) and Geological Survey of India (GSI) is in doubt, pointed out Fimi.

"If explored blocks (up to G2 level) are not available and the term of existing leases comes to an end on March 31, 2020, only the captive mines in operations will be able to feed their plants. This is a scary situation for the country's manufacturing industry, which do not have captive mines. This will also have cascading effect on the downstream industries since one man's production is another man's raw material," Fimi secretary general R K Sharma said in a letter to Union steel & mines minister Narendra Singh Tomar.

Since the leaseholders of non-captive leases need time to remove plant, machinery and mines out material, Fimi suggested they should be given the right of first refusal.

The Odisha government has so far extended the lease validity of 58 mines, both captive and non-captive leases. More than 100 mines are still awaiting extension of lease validity.

"There are many mines whose lease validity need to be extended. Their cases will be taken up by the inter-departmental committee of the government", said Deepak Mohanty, director (mines).