HC directs state to allow operation of lapsed mines

The Orissa High Court today directed the state government to allow operation of lapsed mine leases, as per the provisions mentioned in the Mines and Minerals (Development and Regulation Amendment) Ordinance, 2015.

The state government had halted operation of several iron ore leases which were seeking renewal and had decided to auction them off. The court today said, it must adhere to the ordinance, which has removed the renewal process.

"Take necessary steps to allow mining operations and take steps to insert addendum in the existing lease deed. Report compliance of the ordinance by 29 April," said the court order.

The state cabinet on January 5 had taken a decision to auction all lapsed mining leases, except coal. The decision was in accordance with a Supreme Court order in May 2014, which had directed the Odisha government to either renew the leases or cancel their renewal applications since they have completed 50 years of mining.

The state government had later passed a resolution based on the Cabinet decision on January 9.

However, the state government today conceded that its decision has lost its force in view of the ordinance, which has removed renewal provision and allows operation of lapsed leases till 2020 in case of merchant mines and 2030 in case of captive mines.

The court decision will benefit more than two dozen iron ore mines of the state.