SC orders welfare fund for Odisha

SC tells state government to finance development of those affected with levy on lessees in breach of ecology rules

The Supreme Court on Monday stayed the application to Odisha of a letter from the Union Ministry of Environment and Forests to all states, allowing mining units whose licences had expired to continue operations for two more years.

A Bench headed by A K Patnaik passed the order after senior counsel Harish Salve, appointed by the court to assist it in the forest litigation cases, argued there was “rampant violation of law” in the state by mining companies.

About 590 licensees are operating in forest areas and the permission for 350 had expired. However, these continue to exploit the region concerned, whether forest or non-forest, he said, by maintaining there is “deemed clearance” from the authorities concerned.

The Central Empowered Committee (CEC) of the court, appointed to assist it in environmental matters, had also said it found serious violation of the law.

In another order referring to Odisha, the Bench directed the state government to set up a special purpose vehicle (SPV) for the welfare of tribals affected by mining. This is on the pattern of the SPV devised by the court in 2008 in the Vedanta case.

Half the net present value of money recovered from mines breaching environmental conditions will finance the SPV. This, said the order, must be utilised for “inclusive growth” of tribal people and development work.

The order further said the government, in consultation with the CEC, shall present a comprehensive plan for tribal development, taking into account the needs for health, education, livelihood and other parameters.

The next hearing is on February 24.