Govt's ore distribution policy gets HC nod

Odisha govt had asked mine owners in the state to supply half of their mine lumps to local standalone units

In a significant ruling, Orissa High Court has upheld the state government's circular of December 2012 in which it had asked mine owners in the state to supply half of their mine lumps to local standalone units.

Dismissing a batch of petitions, including that of Federation of Indian Mining Industries (FIMI), a division bench of Chief Justice A K Goel and Justice A K Rath yesterday observed that the step taken by the state government was valid as a right of pre-emption.

Odisha Government had on December 5, 2012 issued the circular asking mine owners to allocate 50% of their produce to the units without captive power as an attempt to regulate the mining activities in the State.

The circular issued by the Director of Mines had authorised the competent mining officials to monitor and implement the directives with immediate effect.

However, FIMI-the apex mining industry body of the country had termed the directive as 'restrictive' and challenged it before the central government.

Entertaining the FIMI plea, the Centre had asked the state to withdraw the directive on February 2013.

When the Odisha government did not pay heed to the Centre's instruction, FIMI and few other mines owners had approached the Orissa High Court seeking judicial intervention to quash the state government's 'impugned' order.