INDIA: Odisha High Court stays Deemed renewal of mining lease

In a significant development in the Odisha mining industry the Honorable Odisha High Court has put a stay on the deemed renewal of mining
leases. This interim judgement could impact the production of as many as 54
major miners in the state.

Hearing a public interest litigation filed by social activist Biswajit
Mohanty the high court bench constituting of Chief justice V.Gopalagauda and justice
B.N.Mohapata has issued notices to the union mines ministry, union environment
and forest ministry, Odisha Steel and Mines department, Odisha Environment and
forest Department and the director of mines Odisha and has put a stay on
issuing deemed renewal to any mines under the clause
(Rules 24-A (6)) of Mineral Concession Rules-1960 without prior approval of the court.

In his
petition the activist had complained that large scale illegal mining has been
carried out misusing the provisions of clause (Rules 24-A (6)) of Mineral Concession
Rules-1960, which says that if a lease holder has applied well before the
expiry of its lease and the government has not undertaken any decision on the
application, the lease period would get deemed extension. Under the garb of this
rule as many as 15 mines are operating for the last 20 years. Similarly 215
mines operating for more than 5 years under deemed extension.

As per the government
information as many as 54 mining leases in Odisha are operating under deemed
extension following the expiry of their leases. The expiry period of the leases
ranges from five to 25 years.