Odisha HC stays auction of non-coal mines

The Odisha High Court Friday in an interim order put on hold the state government decision to auction all non-coal mines in the state, and posted the matter for Feb 4.

Five mining lease holders, including Odisha Manganese and Minerals Limited, Mesco, Aryan Mines & Trading Co. and Kalinga Minerals, had moved the court challenging the Jan 5 decision of the state government that all the major mineral-bearing mines, excluding coal, would be auctioned in the state.

It also decided to auction the mines awaiting second and subsequent renewal.

Several miners, especially 18 mine lease holders awaiting second and subsequent renewal, would be affected by the decision of the government.

Meanwhile, the Odisha government has decided to raise objections to the mining auction ordinance issued by the central government at a Jan 19 meeting being held to discuss on implementation of the ordinance.

"There would be a significant loss of revenue for the state government after the implementation of ordinance. It would override the state government's decision to auction mines which are awaiting second and subsequent renewal," said Steel and Mines Minister Prafulla Mallick.

He said while the state government has decided to auction the mines, the ordinance has extended validity of mining leases by five years and 15 years for non-captive and captive uses respectively.

The minister said the department has sought the opinion of the law department on the matter and would present the case at the meeting to be held Jan 19.