PANJIM: Demanding that amendment to the Mines and Minerals Development and Regulations (MMDR) Act 1957, pertaining to grant and renewal of leases should be carried out retrospectively, the Federation of Indian Mineral Industries (FIMI) has recommended that a mining lease should be granted for 30 years, with extension of 20 years, or till the exhaustion of the mine. FIMI has claimed that the Supreme Court judgment terming operation of mining leases under deemed provision as ‘illegal’ has thrown the industry in the country out of gear. Addressing the two-day summit on sustainable mining held in Goa, FIMI president H C Daga pointed out that in a recent judgment delivered on April 21 in the case of Goa, the Court has interpreted the deemed extension clause to be limited only to first renewal and not to second renewal since for the second renewal, State has to opine that it is in the interest of mineral development. “This judgment has however forced the mining industry in the country to go haywire,” he commented. Daga, speaking in the presence of Chief Minister Manohar Parrikar, said that in most of the states, renewal of mining leases, both captive and non-captive, are not done within the time-frame prescribed and the leases are operating under deemed extension clause in Mineral Concession Rules 1960. “This has created total uncertainty in the mining sector. This uncertainty is the root cause for the industry over-shooting the production limit mentioned in the environmental clearance, which has been dubbed as illegal mining,” he stated. The FIMI summit on sustainable mining also suggested certain amendments to Section 8 of MMDR Act 1957, which provides periods for grant and renewal of leases. It said mining lease should be granted for the maximum period not exceeding 30 years, provided that the minimum period for which any such mining lease may be granted, shall not be less than 20 years. “A mining lease may be extended for a period not exceeding 20 years at a time or till the exhaustion of the mineral deposit at the option of the lessee, provided that the lessee has done mining in a scientific and work-man like manner and without any violations,” FIMI suggested, adding that the denial of the lease application should be done only after the lessee is heard. BJP-led NDA government during its budget earlier this month, has announced to make necessary amendments to the MMDRA Act 1957.