With the policy deciding to grant leases to their earlier owners on a case-to-case basis, it is expected to open doors for the iron ore extraction activity in the coastal state, which has been on hold since last two years following directives by the Supreme Court.
The policy, which is an amendment to the existing policy, was passed by the Manohar Parrikar cabinet in its meeting held here this afternoon.
During his interaction with reporters, Chief Minister Parrikar ruled out auctioning of leases "as such an act (auctioning) is not permitted under the Mines and Mineral Development and Regulation (MMDR) Act 1957".
"The leases would be granted to the earlier owners on case-to-case basis in the best interest of mineral development. Also, the temporary suspension on the mining operation imposed by the state government in September 2012 will also be lifted on case to case basis," the chief minister told reporters.
Though the policy has been paved way for resumption of mining leases, the miners will have to go through rigorous pollution control measures while operating leases, he said.
"The state government expects to generate annual revenue of Rs 3000 crore from the mining industry," he added.
