Govt orders fast execution of new mines renewal policy

The state government, which recently came out with new guidelines for renewal of mining leases saying that steel and aluminium plants having captive mines with excess area must return the surplus area during the renewal process, wants fast execution of the policy order.

The government has directed the state mines director to prepare a list of all mining leases, whose validity have been lapsed and also of those who are running under deemed extension clause within seven days.

“You are directed to take immediate steps for implementation of the policy decision of the state government and furnish a list of all leases awaiting second and subsequent renewal with all requisite details to government within a week,” the state steel and mines secretary has told the mines director.

“Excess land occupied by such lessee can also be taken over by the state government after assessing the captive requirement. You are directed to do this exercise and report the details of such cases, if any, to government after proper verification within a week,” he added.

The government, meanwhile, has constituted an inter-departmental committee with 12 members including Chief Secretary as its head to consider the cases of mining leases renewal. As per the guidelines, the director of mines should refer renewal application to the committee and the committee would give its final recommendation for lease renewal.

The government has pulled its socks to expedite the cases of mining lease renewals after it was criticised by the central government, opposition party Congress and by Shah Commission for long delays in disposal of renewal applications.

Union minister of state Srikant Jena, a Congress MP from Balasore, had last month alleged that the deliberate silence of the government over the renewals is allowing miners to operate their mines under deemed extension clause and facilitated indiscriminate extraction of minerals.

In the new guidelines, the government has said that the mines directorate should ensure that captive mines operating under deemed extension must produce minerals only as per their consumption requirement and should not use mineral for non-captive use.

Though a very few company in Odisha have captive mines, Jena said that around 83 iron ore mines , 53 manganese mines, five bauxite mines and nine chromite mines are still awaiting renewal of leases and are operating their mines under deemed extension clause.

According to clause 24, sub-clause 6 of Mineral Concession Rules, 1960, if an application for the renewal of a mining lease is not disposed of by the state government before the date of expiry of the lease, the period of the lease is deemed to have been extended by a further period till the imposition of a new order.