State to expedite SAIL mines lease renewal, PL

The Orissa government today assured the Steel Authority of India Limited (SAIL) to take expeditious measures for clearing its application of prospecting license (PL) for new mines and lease renewal of old mines, whose lease term has expired.

It will convene a meeting of the company officials with the forest secretary to facilitate renewal of mines pending for forest clearance. The assurance from the state government came during a meeting of the senior SAIL officials with the chief secretary Ajit Kumar Tripathy in the state secretariat today. “The Rourkela Steel Plant (RSP) plans to expand its production to 8 million tonne by 2019-20 from about 2 million tonne at present for which it requires mines. The state government assured to initiate measures for clearing the lease renewal of old mines and PL for new mines sought by the company”, Ashok Dalwai, commissioner-secretary, steel and mines department, government of Orissa said.

Talking to the media, he said, SAIL has sought PL for Thakurani (A-block) which is under litigation. The government cannot do anything till the matter is disposed by the Supreme Court. However, a meeting of the senior officials of SAIL and the forest secretary will be convened to clear the PL pending for forest clearance. On Horomoto iron ore block, Dalwai said, a revision application is being filed with the Union government. The mining lease of the Horomoto mines in favour of SAIL could not be renewed as the company could not justify its non- use, he added.

Ganatantra Ojha, director (personnel) and in charge (raw material division) said, the state government assured to look into the pending matters positively. On getting PL for the Thakurani mines having estimated reserves of 75 million tonne, he said, the matter is before the apex court. SAIL will seek legal assistance to pursue the matter as indefinite litigation will not help anyone. Similarly, on the issue of the renewal of the PL for the Horomote mines Ojha said, the mining tribunal will call both the parties (the Orissa government and SAIL).While the counter proposals are to be submitted, it may take about 2-3 months for the tribunal to hear the case and decide.

Company sources said, the non-renewal of the mining lease of the Horomoto mines in favour of SAIL may affect the Rs 10,000 crore expansion plan of the Rourkela Steel Plant (RSP).