On 25th March 2015, the Odisha High Court, hearing petitions filed by several miners, ordered state government to allow operations in mining shut for second deemed renewal, as per MMDR act.
MMDR act (amended) which passed in the upper house of the parliament, has given a transition period till March 2020 for merchant miners and 2030 for captive miners, which are deemed to be renewed.
The High Court order states ” Having heard learned counsel for the respective parties and after having perused the affidavit of the State filed in Court today, we direct as follows:
(i) The State of Odisha shall implement the Mines and Minerals Development (Amendment) Ordinance, 2015 and the direction of the Union of India as contained in its letter dated 05.02.2015 latest by 27.04.2015. Compliance affidavit be filed on 29.04.2015.
(ii) We further make it clear that, pendency of the writ application shall not come on the way of the State Government to execute/amend the lease deeds and permit operation to the parties who are entitled for extension of term of lease in terms of the Ordinance.
Will Odisha govt increase cap on Iron Ore by 57 MnT?
Odisha government is following a cap of 57 MnT on iron ore production by non captive miners since financial year 2013-2014 and 2014-2015. Big question arises,
Will Odisha government increase cap, when Rungta Mines and Serajuddin have been granted to produce additional 18-20 MnT in December 2014?
Significantly, the Shah Commission in its report tabled in parliament had recommended the production be capped between 50 and 55 million tonnes per annum (MTPA), with an increase of 7.5 percent per annum or equivalent to the growth of steel and sponge iron industry’s requirement.
Odisha miners believe that state government may allow mining by April end but with certain terms and condition.
” Even if mining starts in Odisha, over all production may not increase. State govt’s capping is 57 MnT for non captive miners and can only increase by 7.5% annually.Certainly, miners will push their ‘already mined’ stock, which may put pressure on prices in short term. We have to wait till state government submits its compliance report to high court on 29th April 2015.” said a miner based in Odisha.
Supreme Court in its order on 16th May asked Odisha state government to temporary suspend operations at all those mines running under second deemed renewal. Total 26 running Iron ore and manganese mines were shut.
Later state government in its express order allowed 8 mines {SAIL(4 mines), Tata (3 mines), OMC(1 mines)} to resume operations and asked them to get statutory clearances with 6 months from date of supreme court’s order.
While SAIL has got all the clearances, Tata and OMC is yet to get. After expiry of 6-months, Tata has filed a petition in High court seeking extension.
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