States seek relaxations in mining Ordinance

Karnataka wants removal of 30 mn tonnes cap, Goa urges 10-year extension in lease period

Faced with difficulty in implementing the guidelines set in the Mines and Minerals Development and Regulation Amendment Ordinance, mineral-rich states have sought a relaxation in these.

In a meeting late last month to discuss the implementation, between the Union ministry of mines and representatives of mineral-rich states, T B Jayachandra, mines minister of Karnataka, urged the government to liberalise the annual production cap of 30 million tonnes set by the Supreme Court.

Much of the state’s iron ore resources were on private and ‘patta’ land and would have problems with grant of mineral concessions through auctioning, he said. And, that the power of revision by the central government was an encroachment upon state powers.

“The government should make an interim arrangement for grant of mining concessions till the auction of the mineral concessions. Else, illegal mining will proliferate due to existing demand and reserve availability,” he said.

Goa minister Mahadev M Naik demanded the lease period allowed be extended to 60 years from the existing 50 years. Since the lease period under the ordinance was made effective from May 1987, almost 30 years of the allotted 50 years had got over. “Hence, massive investment on mineral exploration for just a 20-year period would be unfair. Another 10 years of extension would bring more investment in mineral exploration in Goa,” said an industry official.

Rajendra Shukla, minister of mines, Madhya Pradesh, emphasised that the government should allow transfer of mining leases for captive use, along with the acquisition of the primary industry.

FLOOD OF DEMANDS ON MMDR ORDINANCE
States raise issues before implementation

Karnataka

• Demands: Remove 30 mn tonne cap, vest power of revision of mineral concession with the state, make interim arrangement until auction is complete

Goa

• Demands: Increase period of concession from 50 to 60 years, empower state to allocate minerals for lapses and revivals, segregate renewal applications filed before the Ordinance

Odisha

• Demands: Allocate minerals to Posco, take suggestions before framing implementation guidelines

Jharkhand

• Demand: Expand mineral exploration area

Madhya Pradesh

• Demands: Allow transfer of mining leases for captive use on acquisition of the primary industry

Andhra Pradesh

• Demands: Remove limestone from notified minerals, amend Mineral Concession Rule

Source: Ministry of Mines

Andhra’s P Sujatha sought an amendment in the Mineral Concession Rules (MCR) and deletion of limestone from the list of notified minerals in the ordinance. To which, the Union government’s joint secretary (mines), Arun Kumar, assured the ministers a simplification in MCR and the Mineral Conservation and Development Rules, 1988, would be done to the extent possible.

Emphasising the need to protect the interest of foreign investors, Prafulla Kumar Mallik, minister from Odisha, demanded allocation clearance for iron ore deposits to Korean steel major Posco. “The commitment given at the international level must be fulfilled,” he said.