Following the intervention of the Supreme Court and its constitution of the Commission of Inquiry headed by Justice MB Shah to probe the mega mining scam in various States including Odisha, many irregularities have come to the fore in the mining sector.
The mining activities have virtually been in a standstill since the probe was instituted which have an adverse repercussion on the economy of the State and a direct impact on many industries. Due to lack of raw material, many industries have started to shut down while several others are facing a lot of hardships. The South Korean steel giant Posco’s steel plant in Jagatsinghpur district has been hanging fire for almost a decade now.
Meanwhile, the recent Mines and Minerals (Development and Regulation) Ordinance-2015 of the NDA Government at the Centre has added fuel to the fire. Pertinent to note that, the apex court had asked the State Government to put operation of the 26 mines on hold as they were operating without statutory clearances. In June, 2014, the Government allowed eight mines of Tata Steel, Steel Authority of India limited (SAIl) and Odisha Mining Corporation (OMC) to operate through an express order in accordance with a provision in the MMDR Act.
Meanwhile, the Eastern Zone Mining Association (EZMA), a mine owners lobby, on February 3, in the wake of promulgation of the Mines and Minerals (Development and Regulation) Ordinance-2015 by the Centre, has sought that the Odisha Government to restart operation of 18 mines. The mines were closed following the Supreme Court’s verdict on May 16, 2014. But, such a demand by the EZMA is incongruous against the State Cabinet’s January 5 last decision to auction mines.
“Since the Ordinance extended the lease period of non-captive mines till March 31, 2020, and captive mines up to March 31, 2030, we urged the State Government to expedite the process of examining mines and recommend the Centre to allow the eligible mines to operate,” EZMA secretary Prabodh Mohanty told the media, after meeting Chief Secretary Gokul Chandra Pati.
Although the apex court had asked the State Government to renew the lease of the mines by November 15, the recently promulgated Ordinance puts the fate of 18 mines in doldrums. Even matured bureaucrats, steering the Steel and Mines Department in the State and having diverse experience in varied fields like Forest, Revenue and Mines may be forced to seek legal views or move to the apex court.
Meanwhile, the State High Court also took a call on February 4 pertaining to State Government’s decision to auction mines. On January 16, the High Court after hearing petitions filed by some miners restrained the Government from going ahead with its decision.
The State Government filed an affidavit in the High Court on February 4, defending its decision to auction mines awaiting second and subsequent renewal and the matter is pending for final hearing. In such a situation, the BJD Government is expected to take brazen and progressive measures to guard the State exchequer from pecuniary pinches.
(Dr Rout is a management expert based in Bhubaneswar)