State govt will have to finalise leases within 3 to 6 months, but allowed say on time frame The Union Mines Ministry has issued fresh guidelines for giving mineral concession under which the State government has to clear (sign) the mining leases within a period of three to six months under the Mineral Concession Rule 1960. However, State has been allowed to have a say in the time period for signing of lease agreement – that some say could be used as a loophole. The Union Mines Ministry on Wednesday issued fresh guidelines for submission of Mineral Concession Proposals under section 5(1) of Mines and Minerals Development and Regulation (MMDR) Act, 1957 following a series of Supreme Court judgements on the mining industry. As per the new guidelines, the State will have to take prior permission or approval from the Centre for grant of mining leases and is supposed to ensure that the mining lease is granted in the interest of public. “These Supreme Court pronouncements require the State action to be unbiased, without favoritism or nepotism, and to be in pursuit of promotion of healthy competition and equitable treatment; and that it should conform to the norms which are rational, informed with reasons and guided by public interest,” the guidelines read. “It has also been held by the Apex court that if a policy or law is patently unfair to the extent that it falls foul of the fairness requirement of Article 14 of the Constitution, the Court would not hesitate in striking it down,” the guidelines further stipulate. The Union Mines Ministry has said that prospecting licences or mining licences have to be signed within a period of three or six months from the date of the communication of the order for grant of lease, or such further period as the State Government may allow as per provisions of Rule 7A(1) / 15(1) or 31(1) of the MCR, 1960 respectively. “After prior approval of the Central Government is obtained for grant of a mining lease, the State Governments should issue grant order / Letter of Intent to the applicant, without delay, preferably within one month of receipt of prior Centre’s approval. Delays in execution of mineral concessions agreement should be avoided,” the Ministry has specified. In Goa, all the mining leases were operational under deemed renewal provisions as the Government delayed in renewing the mining leases, when the lessees applied for second renewal in November 2007. Supreme Court in its judgement of April 21 said, that mining under deemed provision is illegal and hence all mining operations in Goa post-2007 are illegal. Government is in the process of renewing the mining leases under section 8(3) of MMDR Act. Guidelines not to affect renewal of leases: govt PANJIM: The government says that these guidelines will not affect the leases in the State since they are only “renewing” them. However, given that the lease renewals itself are under attack and have been challenged in the courts and since the Supreme Court has said that leases renewed after 2007 are illegal, the jury is still out on whether they will apply to Goa or not.