19 FEB, 2013, NAGESHWAR PATNAIK, ET BUREAU
BHUBANESWAR: Odisha government cannot reserve any area not already held under any prospecting license or mining lease, for undertaking prospecting or mining operations through the state owned Odisha Mining Corporation according to the latest order of the Union ministry of mines.
The Union mines ministry also advised the state government to withdraw the state government's resolution dated October 3 and 12 which goes against the interest of local miners even if they are more than willing to give their excavated ore to the mineral-based industries located in the state. The resolution gave the OMC first right over areas containing major minerals such as iron ore, bauxite and chromite.
No mining leases would be renewed except for captive use. "Captive mining and the principle of equitable distribution, among others, shall be considered as guiding factors for such renewal, except in case of the lease held by a company or corporation owned or controlled by the union or state government", the resolution said.
"Reservation in favour of a Government company or corporation owned or controlled by the State Government cannot be done without the approval of the Central Government. Renewal of leases needs to be decided on a case-tocase basis by complying with relevant provisions of MMDR Act, 1957 and MCR, 1960", the letter said.
Besides, the resolution of the state government restricted area of a mining lease at the time of second and subsequent renewal for the captive requirement only to ensure 'mineral development' for the purpose of Section 8(3) of Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 for iron ore, manganese, chromite and bauxite, except in case of leases held by a company or corporation owned or controlled by Union or state government.
It has also decided that excess area so identified will be reserved for OMC. The letter by the director, union mines ministry, Rokhum Lalremruata to the secretary, steel and mines Odisha government (a copy of which is with The ET), quoted the verdict of Supreme court in the matter of TISCO vs. Union of India of 1996, which held that "from the scheme of the MMDR Act, 1957, it is clear that the Central Government is vested with discretion to determine the policy regarding the grant or renewal of leases".
Referring to the Odisha government's letter on December 5, 2012, wherein a decision has been taken that at least 50% of the iron ore raised from the mines in any month but not put to captive use by the lessees shall be sold to stand alone mineral based industries in the state, the union ministry of mines said, this cannot be invoked by application of Rule 27(1) (m) of Mining Concession Rules (MCR) 1960 under the pretext of right of pre-emption. "The right of pre-emption can be enjoyed only by the State Government and such a right cannot be transferred as in the instant case to mineral based industries in the State."
BHUBANESWAR: Odisha government cannot reserve any area not already held under any prospecting license or mining lease, for undertaking prospecting or mining operations through the state owned Odisha Mining Corporation according to the latest order of the Union ministry of mines.
The Union mines ministry also advised the state government to withdraw the state government's resolution dated October 3 and 12 which goes against the interest of local miners even if they are more than willing to give their excavated ore to the mineral-based industries located in the state. The resolution gave the OMC first right over areas containing major minerals such as iron ore, bauxite and chromite.
No mining leases would be renewed except for captive use. "Captive mining and the principle of equitable distribution, among others, shall be considered as guiding factors for such renewal, except in case of the lease held by a company or corporation owned or controlled by the union or state government", the resolution said.
"Reservation in favour of a Government company or corporation owned or controlled by the State Government cannot be done without the approval of the Central Government. Renewal of leases needs to be decided on a case-tocase basis by complying with relevant provisions of MMDR Act, 1957 and MCR, 1960", the letter said.
Besides, the resolution of the state government restricted area of a mining lease at the time of second and subsequent renewal for the captive requirement only to ensure 'mineral development' for the purpose of Section 8(3) of Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 for iron ore, manganese, chromite and bauxite, except in case of leases held by a company or corporation owned or controlled by Union or state government.
It has also decided that excess area so identified will be reserved for OMC. The letter by the director, union mines ministry, Rokhum Lalremruata to the secretary, steel and mines Odisha government (a copy of which is with The ET), quoted the verdict of Supreme court in the matter of TISCO vs. Union of India of 1996, which held that "from the scheme of the MMDR Act, 1957, it is clear that the Central Government is vested with discretion to determine the policy regarding the grant or renewal of leases".
Referring to the Odisha government's letter on December 5, 2012, wherein a decision has been taken that at least 50% of the iron ore raised from the mines in any month but not put to captive use by the lessees shall be sold to stand alone mineral based industries in the state, the union ministry of mines said, this cannot be invoked by application of Rule 27(1) (m) of Mining Concession Rules (MCR) 1960 under the pretext of right of pre-emption. "The right of pre-emption can be enjoyed only by the State Government and such a right cannot be transferred as in the instant case to mineral based industries in the State."
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