What is the point of renewing the lease of the mines having no captive useIJ This is being debated in the steel industry circle ever since the State Government issued notices to 18 mine owners to justify their stand on the renewal application.
The Government, which was to renew 26 lapsed leases operating under a deemed extension status, has sent notices to several mining majors.
The Government had earlier framed a value addition policy for which it received huge investments. However, of the 26 mines whose operation had been suspended in view of Supreme Court’s May 16 order, some companies do not have facilities for value addition. Some of those mining companies simply take lease from the State Government and mine the ore to sell it outside for making windfall profit. Though Chief Minister Naveen Patnaik himself is not in favour of giving mines to merchant mines, what actually prompted the Government to consider the application of the companies now, questioned a senior official.
The State Government has the full authority to deny renewal of mines to any company those who are not adhering to value addition clause. The main motto of renewal of the lease is industries which have invested in the State can get hassle-free raw material linkage.Meanwhile, the State Government has allowed eight mine owners including Tata and SAIl to operate their mines on express order. However, none of the eight companies has so far submitted its clearance within the stipulated period.
Therefore, the State Government has full power to deny renewal of the mines. Instead, it is doing the reverse. The pro-mine owner attitude of the Government has been criticized from different quarters including the Justice MB Shah Commission and Supreme Court appointed CEC in the past.