Bhubaneswar:
Uncertainty looms over the Chingudipal Chromite mines of the Indian Metals and Ferro Alloys ltd (IMFA) the country’s leading producer of value added ferrochrome as the state government has issued a proposal for lapse of the mining lease.
The state steel and mines department has issued a proposal for lapse of mining lease held by IMFA for Chromite over an area of 26.620 hectares in Cingudipal Village of Jajpur District due to discontinuance of mining operation continuously for more than 2 years (since 25 September 2004 till today ) under section 4A(4) of the MMDR act 1957and the rule 28 of Mineral Concession Rules 1960. Subsequently, the department has issued a showcause notice to IMFA and has summoned the company authorities to appear before the steel and mines department on 25th of June to explain the reasons of delay.
The rule 28 of the MCR, 1960 says “if mining operations are not commenced within a period of two years from the date of execution of the lease, or is discontinued for a continuous period of two years (or more) after commencement of such operations, the State Government shall, by an order, declare the mining lease as lapsed and communicate the declaration to the lessee.â€Â
“ However, where a lessee is unable to commence the mining operation within a period of two years from the date of execution of the mining lease, or discontinues mining operations for a period exceeding two years for reasons beyond his control, he may submit an application to the State Government, explaining the reasons for the same, at least three months before the expiry of such period.â€Â
Reported by Tapan Moharana
Leave a Reply