The MoEF allowed the companies to continue operations despite their licences expiring The Supreme Court today stayed the Ministry of Environment and Forest letter, which virtually allowed mining companies whose licences in Odisha have expired to continue operations for two more years. The bench passed the order after senior counsel Harish Salve, appointed by the court to assist it in the forest litigation, submitted that there was “rampant violation of law” in the state by mining companies. Though some 590 licencees are operating in the forest area, the permission for 350 have expired. But still they are claiming that they have long leases and continuing to exploit the region whether forest or non-forest area. They are justifying their overexploitation maintaining that they have got “deemed clearance” from the concerned authorities. The Ministry, in a letter, has effectively allowed these firms to continue functioning for two more years. The centrally empowered committee (CEC) appointed by the Supreme Court to assist it in environmental matters have found serious violations of the laws. Allowing the firms to continue their operations will be disastrous, it said. In another order referring to Odisha, the bench headed by Justice A K Patnaik directed the state government to set up a special purpose vehicle (SPV) for the welfare of the tribal people in the state who are affected by the mining activities. This is on the pattern of the SPV devised by the court in the Vedanta case in 2008. Half of the net present value recovered from erring mines will finance the SPV. This, said the order, will be utilised for “inclusive growth” of the tribal people and development work. The order further said that the government, in consultation with the CEC shall present a comprehensive plan for tribal development taking into account the needs for health, education, livelihood and other parameters. The next hearing will be on February 24.