Odisha Panel recommends lease renewal of another eight mines

These assets were closed by an interim order of Supreme Court on May 16

The state government high level committee on mines lease renewal has recommended to extend leases of another eight mines which were closed by an interim order of Supreme Court on May 16.

The names included five mines of Tata Steel (Joda East, Joda West, Bamebari, Khandabandh, Katamati), two mines of Steel Authority of India Ltd (Barsuan, Bolani) and one mines (Kurmitar) of Odisha Mining Corporation (OMC).

The total number of mines for which the state panel has so far recommended to renew their leases has gone up to 13 with the latest decision. Earlier, the panel had decided to recommend lease renewal of five mines.

The total list now includes all the seven mines of Tata Steel, which was affected the most by the Supreme Court order.

On May 16, the top court had ordered the state government to halt mining activities in 26 iron ore and manganese mines which were operating without valid lease after the first renewal. The apex court maintained that automatic renewal of leases or deemed extension after first renewal is illegal and hence, operation should start after getting the lease document renewed. The court has asked the state government to expedite the lease renewal process within six months.

The high level committee, chaired by Chief Secretary, has recommended three conditions for lease renewal. They are : getting forest clearance, payment of penalty imposed in excess mining and getting prior approval for using tribal land.

The eight mines have been already asked to pay Rs 8364 crore towards payment of excess mining. Tata Steel has to pay Rs 2463 crore for its five mines, SAIL will have to fork out Rs 4168 crore for its two mines while OMC has been directed to pay Rs 1718 crore to get its Kurmitar mines lease renewed.

--EOM---