Mining lease renewal begins in State
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18/05/2014
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Pioneer (Bhubaneswar)
The State Government has started the process of considering applications of mining leases on a priority basis for their renewal following the Supreme Court’s recent order that these mines cannot be allowed to operate without statutory environmental and other clearances.
The Mines Directorate has recommended the State Government to take in-principle initiatives in some cases and it has started the process as well, according to Mines Director Deepak Mohanty.Dealing a huge blow to the steel industry, the Supreme Court on Friday had ordered closure of 26 iron ore and manganese mines in Odisha to protect the environment. These mines account for nearly 25 per cent of the national production of the two minerals vital for the sector.
The green bench comprising Justices AK Patnaik, SS Nijjar and FMI Kalifulla said of the 56 iron ore and manganese mines in Odisha, which together account for 50 per cent of national production, 26 mine leases were given second renewal without the State adhering to the provisions of Section 8(3) of Mines and Mineral (Development and Regulation) Act.
The bench said these mines were allowed to be continued without there being statutory environmental and mine-related clearances which could not be sustained under the law. Passing the order on a PIL filed by NGO ‘Common Cause’ after Justice MB Shah Commission gave a damning report about mining operations in Odisha, the bench said its interim orders would remain in force till the State Government ensured that these defaulting mine lease holders complied with all statutory environmental and forest clearances.
The bench said 14 iron ore mine leases, which were allowed first renewal for a period 20 years, would be allowed to continue operations since the Act conferred a right of first renewal on lease-holders. However, there was no such right for second renewal as was given on oral orders in 26 mines.