Odisha frames new guidelines for mines renewal

The state steel and mines department has circulated a new guideline for second and subsequent renewal of iron ore, manganese, chromite and bauxite mines in the state.

While framing the guideline, the department has invoked a 1996 judgement of the Supreme Court which ruled that second and subsequent renewals cannot be claimed by lessees as a matter of right.

However, the government has made it clear that the new renewal policy will not be applicable to a company or corporation owned or controlled by the Union or state government.

Among other things, the circular states that if the mineral from the mining lease is being used for captive purpose, the area to be renewed shall be limited to the captive requirement of 30 years of the existing capacity of the mineral industry of the lessee. While determining the mineral ore available to the lessee for captive use, the mineral resources of all the leases held by the lessee in the country will be taken into consideration.

Similarly the new guideline has stressed on scientific prospecting and subsurface exploration of mines to the geographically visualized depths of ore bottom. It also laid emphasis on implementation of comprehensive environment management plan by the lessee for the area for considering his application for renewal.

It said, the leases awaiting second and subsequent renewal but operating under the clause of deemed extension will be covered by the new policy. However, in such cases, the raising of mineral may be limited to captive consumption till a decision is taken for renewal of part or whole of the lease area.