India: Old lessees threaten to stall Goa’s iron ore mine block auctions

The Goa government proposes, the Supreme Court disposes. This pretty much sums up the decade-long saga of iron ore mining in Goa.

Leases granted by the Portuguese as concessions had expired in 2007, as the court ruled. Subsequent judgments finding fault with the state government’s attempts at reviving mining through renewals came after the Centre had changed mining laws, leaving the state government in an awkward position.

The state government on 30 September invited tenders for four iron ore blocks, breaking from its past position and aligning itself to the Centre’s strict adherence to auction as a mode of allocation of mining rights.

Old lessees accusing the state of acting in haste, have warned they’ll go to court and issue a public notice discouraging prospective bidders.

Maya S Pokhale, Narvekar’s daughter and heir, is among those who have written to the Directorate of Mines and Geology giving them a week’s time to withdraw the notice inviting tenders or defer the date of submission, till after their matters are adjudicated.

She along with other old miners have argued before the High Court of Bombay in Goa that a 50-year term was granted to every other subsisting leases in the country when India mandated auctions in a 2015 amendment to the mining act. If applied to Goa, prospectively from the day their concessions were converted into leases through the Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act, 1987, it gives them rights until 2037. The matter has been heard and the judgement in this matter reserved on 19 August 2022.

Meanwhile the old lessees also hope to convince the Supreme Court to finally hear their challenge to the Abolition Act which they believe denies them a hereditary claim to concessions. The Apex court is expected to hear this early next week, on 11 October.

The state government’s move under the circumstances, is ‘premature and a clean attempt at overreaching the judicial process, bordering on interference with administration of justice. “The Hon’ble High Court being in seisin of the matter and after having heard elaborate arguments has reserved the matter for pronouncement of Judgement, your attempt to offer our leases for auction demonstrates scant respect for the judicial process and undue haste,” says the 4 October letter.