Press Note- Odisha Govt Notification on Mines Auction

Bhubaneshwar: In a historic move the Odisha government has decided to allocate all the non-coal mines only through competitive bidding. Both captive and non-captive mines will be auctioned separately and the highest bidder will be get allocation.

Mines that are awaiting second and subsequent renewal would be auctioned, not the one that are awaiting first renewal. Odisha government has released a small press note on the same.

Press Note

1. The state cabinet has taken an in-principle decision to allot all the major non-coal mineral concessions through open competitive auction among the captive user and merchant users.

2. The public auction shall not be applicable in the following cases.

i) The mining leases that have been granted renewal with prior permission of the central government under the Mines and Mineral (Development & Regulation) Act 1957, but their lease deeds have not been executed. However, if the lease deeds will not be executed within the stipulated time period the grant orders will be withdrawn.

ii) The mining leases awaiting first renewal.

iii) The mining leases that have been given express orders under the provisions as per the rule 8(3) of the MMDR At, 1957. These mining leases have to be executed after getting necessary statutory clearances within the stipulated timeframe.

iv) The mining leases allotted to Odisha Mining Corporation (OMC) and other Central government Enterprises.

v) The applications for mining leases and prospecting licenses that have been recommended by the state government to the central government for approval in favor of the MoUs it has signed. However, the applicants have to satisfy the state government that they have fulfilled all the terms and conditions as per the MoUs.

3. The mining leases awaiting second and subsequent renewals will be auctioned. Also the ‘virgin area’, ‘determined area’ and ‘lapsed areas’ will also be included in the open auction process.

4. However, if any doubt arises on the ‘sec-3’, the matter would be sent to the inter-Departmental Committee Chaired by the Development Commissioner cum Additional Chief Secretary and government will take decision on the basis of the report of the committee.

5. In order to encourage competition and judicious distribution, the mining lease areas will be kept limited within 1000 hectare as indicated in the MMDR Act. Correct boundaries would be decided in due course of time.

6. The above cabinet decision is based on the hon’ble Supreme Court Order and will not only be helpful in boosting the state’s revenue; it’ll bring transparency in the mining lease allotment process.

7. This policy will be helpful in our state’s Community Development and serve the best interest on its finite and non-renewable mineral wealth. The decision will be helpful to the following-

• State’s revenue increment
• Employment Generation
• Opportunity for investment in Large, Medium and Small Scale industries
• To facilitate Ancillary and Downstream Industry

8. The state cabinet has decided to allocate all the major mineral concessions through open and transparent auction process. All the mining lease grant and renewal proposals that are under consideration of the state government would be decided on this policy. On this matter a special leave petition will be filed in the Hon’ble Supreme Court on the basis of the government lawyer advice and after getting the Supreme Court order leases of all the Major Minerals will be allocated through open auctions.

List of 18 mines that were closed after Supreme Court’s order