Odisha govt forms panel to consider extension of mining leases

The 18 mines in question include the ones held by Tata Steel and OMC too

The state government has formed a committee to be chaired by development commissioner U N Behera to consider the cases of extension of mining leases in the light of the new Mines and Minerals MMDR (Development & Regulation) Amendment Ordinance, 2015.

The panel will have principal secretary, steel & mines and additional chief secretary, revenue & disaster management among others as members.

“Since the Mining Ordinance has done away with the renewal of lapsed leases, the committee will examine the cases for extension. There are around 80 mining leases in the state whose validity has expired and this includes the 18 iron and manganese ore mines that are facing shutdown after the Supreme Court order in May last year,” said an official at the steel & mines department.

Last month, Eastern Zone Mining Association (EZMA) made a strong plea to the Odisha government to speed up reopening of 18 shut iron and manganese ore mines awaiting second and subsequent renewal. EZMA pressed for allowing the mines to resume operations, citing the recent MMDR Ordinance, 2015. The mining association had also demanded reopening of 102 non-working mines that have been suspended for want of statutory clearances.

The 18 mines in question include the ones held by Tata Steel, K J S Ahluwalia, K N Ram, Kalinga Mining Corporation, Kaypee Enterprises, Mideast Integrated Steel, Aryan Mining & Trading Corporation Ltd, Bonai Industrial Company Ltd, B I Company Ltd, Feegrade & Company Ltd, OMM Pvt Ltd, state run Odisha Mining Corporation (OMC) and Rungta Mines Ltd.

As many as 26 iron ore and manganese mining leases pending for second and subsequent renewal had to stop operation after the Supreme Court's order. The government passed express orders in case of eight mines. But, operations of 18 mines continue to be closed since the government did not pass similar orders to facilitate the resumption of their operation.

To decide on the fate of these mines, the state government last month, had sought additional time of two months from the apex court. The government pleaded that scrutiny of these cases needed more time in the aftermath of introduction of new provisions in the MMDR Amendment Ordinance, 2015. In its petition, the government also stated it had taken enough steps to comply with the Supreme Court's order and had even sent show cause notices to leaseholders for cancellation of the leases.

In the Mining Ordinance that came into effect on January 12, the provision of renewal of mining lease was done away with and instead, all leases awaiting renewal were automatically allowed to operate till 2020 in case of merchant mines and up to 2030 for captive mines, as per Section 8 (A) 5 and 8 (A) 6 of the Ordinance, subject to fulfillment of lease conditions.

Ahead of the promulgation of the Mining Ordinance, the state government through a Cabinet decision, decided to auction all mining leases awaiting second and subsequent renewal to shore up revenue from the mining sector.

But the decision of the State Cabinet was contested by a few leaseholders in the Odisha High Court that stayed the move. The next hearing on the matter is scheduled on March 25.