Odisha has agreed give old lessees such as KJS Ahluwalia and Serajuddin in Odisha another month to evacuate their material provided they do not seek any further extension.
Background
Iron ore mines were auctioned in Odisha before they the leases lapsed March 2020. While the new lessee took possession the old lessee, under the amended MMDR 2015 and new mining rules, got six months and an additional month to evacuate its material.
This was not enough for a half dozen of them including KMC and RP Sao left with huge mines stocks within the mines. They claimed Covid and covid related lockdowns had impinged on their ability to make the most of the 7-month window and sought more time. They were also banking on Goan miners convincing the Supreme Court that Covid19 and monsoons combined qualified for force majeure relief. The High Court ordered the state government to reconsider this request, on grounds that the old miners had not been heard.
Having heard them, the Principal Secretary Steel and Mines earlier this month agreed to grant the lessee another month under Rule 12(1)(hh) of the MCR rules 2016. Although, this preceded with a long list of explanations as to why the miner didn’t deserve extra time.
The market may just have to wait a bit longer for these stocks to be liquidated if at all. On Monday the department wrote to the lessees stating that it would give them the extra month, provided the lessee submits an undertaking that the lessee accepts the Secretary’s one month’s extension as final. Or in other words foregoing its options to move court again.
Miners feel this is unfair since while dealing with the matter, the HC itself granted another 45 days to some players left with small stocks, while asking the state to take a call on those with bigger inventories. The matter may take longer to resolve if it goes back into litigation.
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