India: Centre to hear States’ Objections on Mining Ordinance

Amid strong opposition from mineral bearing states like Odisha, Jharkhand, Chhattisgarh, Karnataka, Goa and Andhra Pradesh on the mining ordinance, the central government has convened a meeting on 19 Jan, 2015 with the states. Mines ministers from these mineral bearing states are expected to attend the meeting. These states have alleged that the states are not consulted before finalizing this ordinance.

In the backdrop of some states considering moving to the Supreme Court against the ordinance, the centre has convened the meeting to hear the state’s objections.

Odisha Steel & Mines Minister, Prafulla Mallick said, “The state has not been consulted before finalizing the ordinance. The state has targeted to get about INR 100 billion by the auction of mines. But, the ordinance has squashed all hopes of the state government.”

It may be noted that the state cabinet on 5 Jan, 2015 has cleared a proposal to auction all the mining leases except the mines hold by the PSUs and mines running under express order. However, on the same day, the central government has come up with an ordinance on MMDR act (amendment) 2014 that extended the lease periods of all captive and non-captive mines for a period of 15 and 5 years respectively.