Govt to wait for SC guidance over mines allocation

The state government has decided to wait for Supreme Court decision on Presidential reference on allocation of natural resources before granting any mining leases for coal and other minerals to user industries with whom it has signed memorandum of understanding.

The Centre had approached the apex court this April to settle the issue, whether judiciary will have a say on policy decisions such as allocation of natural resources, after the court held that all natural resources should be allotted through auction route.

The Supreme Court opined this while disposing of a case related to 2G spectrum scam.

The observation holds much significance as it will decide all future allocation of natural resources such as coal and other mineral mines.

 

“Hon’ble Supreme Court in the 2G telecom spectrum case had observed that natural gas should be given by auction. It was decided that the state government will go by the decision of Hon’ble Supreme Court on the Presidential reference,” according to a recent decision taken by the review meeting of the state steel and mines department.

The apex court has started hearing on the reference sought by Rastrapati Bhawan this month.

The decision will impact allocation of iron ore mines to Bhushan Steel in Keonjhar district and all such other cases pending before the mines department.

As per current practice, all the mine allocations are done as per Mines and Minerals Development and Regulation (MMDR) Act, 1957 on first-cum-first-serve basis.