A major relief to Tata Steel, whose Iron ore mines in Jharkhand have been closed on 2nd and subsequent deemed renewal.
Jharkhand High Court on 11 Dec, 2014 issued an order that Tata Steel can resume operations of its Jharkhand mines since 1-week from the order (i.e. 18 Dec, 2014). The High Court in its order copy mentioned that the state government had issued a notice on renewal of mining lease before code of conduct was applicable.
Tata Steel produces about 5.5 MnT of Iron ore from its Noamundi mines. Because of its closure, the company has imported about 1.5 MnT of Iron ore and has about 1 MnT from merchant market.
Key Points of the Judgement
From the conspectus of the background facts, reasons and judgments/orders passed by the Hon’ble Supreme Court, it emerges the following:
i. Renewal application of the petitioner was made on 17 Dec, 2009 before expiry of its lease with effect from 31 Dec, 2011
ii. Specific direction was issued by the court upon the respondent state on 26 Sep, 2014 to take a decision on the application of the petitioner – company seeking renewal of the mining lease on or before 06 Oct, 2014
iii. The Hon’ble Supreme Court in the case of Common Cause versus Union of India (Supra) had issued a direction that all renewal applications under section 8(3) of the MMDR Act be considered and disposed of by the state government within a period of six months from the date of the order i.e. 16 May, 2014
iv. The state government took a decision on 20 Oct, 2014 to grant renewal of mining lease to the petitioner upon submission of its unconditional consent to the conditions imposed therein
v. The state government also took a decision to issue Express Orders under section 8(3) of MMDR Act upon submission of such consent by the petitioner, whereupon, it could start mining operations
vi. The Model Code of Conduct came into force on 26 Oct, 2014 after such a decision was taken by the state government
vii. The petitioner company submits its consent letter on 1 Nov, 2014
viii. Election Commission of India through its communication dated 26 Nov, 2014 gave its opinion that renewal of mining lease/licence may be deferred till the completion of election in all respects in view of the Model Code of Conduct being in force
ix. It also appears from the case of petitioner (Tata Steel Ltd) that on account of stoppage of mining operations on issuance of the impugned letter dated 04 Sep, 2014 operations of the petitioner company has been affected adversely, also affecting large work population directly or indirectly dependent upon it. It further appears that the petitioner pays substantial royalty, taxes, cess and duties to the state government as well as Central government as statutory payments arising out of operations carried out by it on the basis of such mining activity and production
“Therefore, it appears that no fresh policy decision is required to be taken by the state government in respect of the matter relating to renewal of the petitioner’s mining lease as the same has already been taken earlier on 20 Oct, 2014 itself before coming into force of Model Code of Conduct. Only the consequential orders i.e. Express Orders under section 8(3) of MMDR Act is now required to be issued, also in view of the policy decision already taken on 20 Oct, 2014 and pursuant to interim direction passed by this court earlier on 26 Sep, 2014 in the instant case,” stated by the Jharkhand High Court.
For Jharkhand High Court Order Copy: Click here
Indian Iron Ore Prices may come down
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