Goa government renews 13 mining leases

By PTI | 5 Nov, 2014
PANAJI: In a respite to iron ore mining players in Goa, the state government today renewed 13 mining leases, who can now begin tapping the ore after getting necessary clearances from agencies concerned.

Directorate of Mines and Geology issued renewal order to 13 mining leases under section 8 (3) of MMDR (Mines and Minerals [Development and Regulations]) Act, read with 24 (A) of mineral concession rule 1960 and rule 63 (A) (C) and section 20 of MMDR act.

The individual orders of renewal were issued to V M Salgaocar & Bros Pvt Ltd, Sociedade de Fomento Industrial Pvt Ltd, Chowgule & Co Pvt Ltd, Rajaram Bandekar Pvt Ltd, G N Agarwal Mining Pvt Ltd, Smt Geetabala Manohar Naik Parulekar Mines, Smt Kunda Gharse Mines, Sesa Goa and M/s Letho Ferro.

Of the 13 renewals, Salgaocar company has four mining leases renewed, Fomento two, while others got renewed one lease each.

Director of Mines and Geology Prasanna Acharya confirmed the move and said that extraction (of iron ore) can start only after companies obtain necessary Environment Clearance from Union Ministry of Environment and Forest, Air and Water pollution Act clearance from Goa State Pollution Control Board and mining plan approval from Indian Bureau of Mines.

The Supreme Court had lifted order of mining suspension in April 2014 asking the state government to form proper policy before renewing the mining leases.

According to the order, the renewal orders were based upon state's policy decision which is in accordance with the MMDR Act and Indian constitution and also as per orders of Supreme Court and Goa bench of Bombay High Court.

"Order does not absolve lease from past dues to the state government nor for any action taken under MMDR Act and rules for past acts (of the mining lease owners)," it mentions.

While each mining lease will be allowed certain quantum of iron ore to be extracted, the state government has reserved right to cap the extraction at individual level irrespective of the EC (environmental clearance) limits.

Moreover, the state government also has the liberty to decrease area of lease in the interest of ecology and environment.

The iron ore which is already extracted and piled up at the mining leases continues to be a property of the state government as per the order of the apex court and government will continue with its process of e-auctioning it.

The government has also made it mandatory for the mining lease holders to pay 10 per cent of the sale value for Goa Iron Ore Permanent Fund, a coffer set up by the state.

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