Odisha aims to extend validity of 126 more mines by December

State has already ordered to extend validity of 52 mines after enactment of MMDR Act 2015

Aiming to fast track reopening of mines, the Odisha government has set a target to extend the validity of 126 more mines by December this year.

The state government has already passed orders to extend validity of 52 mines after the enactment of Mines and Minerals (Development & Regulation) MMDR Act, 2015.

"Among the 126 mines, most of the mines are awaiting first renewal and as per the amended MMDR Act, the validity of these mines can be extended by 50 years. The list includes 60 odd iron and manganese ore mines and state orders can boost iron ore output by up to 40 million tonne after their resumption," said a senior official of a standalone mining company.

Out of 52 mines, supplementary lease deeds have been signed for 29 leases including 26 held by private lessees, two of state run Odisha Mining Corporation (OMC) and one by Steel Authority of India Ltd (Sail).

Of the 29 leases for which fresh lease deeds have been signed mining operations have already resumed in case of 27 mines. The government has garnered Rs 1165 crore by way of stamp duty charges from supplementary lease deeds signed for 29 mining leases.

"There are over 100 mines awaiting orders for extension but the matter would be decided by an inter-departmental committee headed by the development commissioner", said an official source.

The amended MMDR Act, 2015 has allowed extension of captive leases till 2030 and those of non-captive mines till 2020.

At the time of issue of orders for extensions, the government had stipulated certain conditions for compliance by the lessees. The lessees had to sign supplementary lease deeds within three months of the order.

Other conditions to operate mines include payment of NPV (net present value) dues and complying with the Supreme Court order to be pronounced in the final disposal of the cases relating to these mines as well as pending orders on recommendations of the MB Shah Commission of enquiry and the central empowered committee (CEC) on illegal mining in the state.

An interim order of the Supreme Court in May 2014 had triggered shutdown of 26 iron and manganese ore mines in the state. The top court had held that such leases cannot operate under the provisions of 'deemed extension' under Mineral Concession Rules (MCR), 1960 unless the government passed express orders for their operations.

Due to the temporary closure of these mines, iron ore production in Odisha shrank 39% to 47.35 million tonne in 2014-15 from 77.84 million tonne in 2014-15.