Odisha gets 2 more months over 18 mines' fate

The Supreme Court on Friday allowed the Odisha Government two months of more time to decide on the fate of 18 iron ore and manganese mines, which are awaiting second and subsequent renewals. The court’s order came on a petition moved by the State Government seeking two months’ time to scrutinise whether the lease conditions of the remaining 18 mines were violated or not as per the provisions in the Mines and Minerals Development and Regulation (MMDR) Ordinance, 2015.

In its interim order on May 16 last year, the apex court had asked the State Government to take a decision regarding renewal of 26 iron ore and manganese mine leases within six months and had suspended operations of these mines. At the time of the court’s order, the leases were awaiting second and subsequent renewals.

In compliance with the court’s order, the Government had passed express orders to facilitate resumption of mining activities in eight mines. But no decision was taken on the cases of the remaining 18 mines for which the Government had sought more time. Responding to the Government’s request, the court had extended the deadline till February 20.

In its latest petition filed earlier this month, the State Government had said it has taken adequate steps to comply with the court’s order and has even sent show-cause notices to the leaseholders for cancellation of the leases. However, the new provisions in the Union Government’s MMDR Amendment Ordinance have tied its hands, the State Government stated.

In the Mining Ordinance that came into effect on January 12, the provision for renewal of mining lease was done away with. Instead, all leases awaiting renewal were automatically allowed to operate till 2020 in case of merchant mines and up to 2030 for industrial users having captive mines, as per Section 8 (A) 5 and 8 (A) 6 of the Ordinance, subject to fulfilment of lease conditions.

Ahead of the promulgation of the Ordinance, the State Government had decided to auction all mining leases awaiting second and subsequent renewals to increase its revenue from the mining sector. But the State Government’s decision was contested by some leaseholders in the Odisha High Court, which has granted a stay on the move till March 11.