The Supreme Court on Monday stayed a Central notification that permitted mining companies to remain in operation for two years after their lease stood expired.
The Green Bench headed by Justice AK Patnaik decided to stay the February 1, 2013 notification of the Ministry of Environment and Forests (MoEF) that allowed mining leases that expired to be revived under a “deemed extension” for two years.
However, the companies or project proponents were required to obtain Forest Clearance (FC) even if its mining operation was limited to non-forest area.
Citing objection against the notification, amicus curiae and senior advocate Harish Salve informed the court that the notification gave a long rope to the mining companies to operate without a lease for a considerably long period.
He attacked the two-year “deemed extension” to be an incentive for illegal mining. The court also dealt with the issue of net present value (NPV), collected from mining companies towards the loss caused to environment, to be used for welfare and development of tribal affairs. During the hearing on the Odisha mining cases, the Centre informed the Court that 50 per cent of the NPV must be allocated for tribal welfare.
Even the Central Empowered Committee (CEC), the expert body recommending the apex court, had suggested Odisha Government to form a special purpose vehicle (SPV) to ensure growth of tribals.
Salve informed the court that before giving effect to this recommendation, modalities had to be worked out to ensure the benefits reach the tribals and are not frittered away.