SC directs mining cos to contribute to GPF, DMF
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15/12/2015
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Herald (Panjim)
PANJIM: In a major setback to mining firms, the Supreme Court on Tuesday directed the companies to continue contributing to the Goa Iron Ore Permanent Fund (GPF) and District Mineral Foundation (DMF) until it passes a final order in the matter.
Goa Foundation director Dr Claude Alvares told Herald that the Apex Court maintained that if the final order is in favour of the petitioners, then the amount contributed towards the GPF will be reimbursed by the State government. The matter will be heard on January 13, 2016.
The Court directives came following its Central Empowered Committee (CEC) stressing on the need of – GPF and DMF.
Five mining companies – Vedanta, Fomento, GN Agarwal, Geetabhai Parulekar and Prafulla Hede – have filed an interlocutory application (IA) before the Apex Court challenging the setting up of the GPF. The companies have pointed out that while the Apex Court judgment talks about contribution of 10 percent of the sale proceeds to the GPF, in the Mines Act amended in 2015, there is a provision for setting up District Mineral Foundations (DMF), whose contribution is equal to that of the royalty paid.
It was following a prayer from Goa Foundation that the Apex Court had directed setting up of GPF. The foundation argued before the court that if the companies are not willing to contribute then the State should take over the mining leases and operate them.