Post News Network
Cuttack, Jan 16: The Orissa high court Friday dealt a major blow to the state government by slapping an interim stay on the government’s recent decision to auction all non-coal mines.
A division bench of Justices Indrajit Mahanti and BK Patel, while hearing writ petitions challenging the government’s decision, issued notice asking the Orissa government to file a counter by the next date of hearing, slated for February 4.
The state Cabinet had January 5 decided to auction all mineral leases, barring coal, to facilitate leases awaiting second and subsequent renewal after they were closed in May last year following a Supreme Court order. A resolution to this effect had been passed by the government January 9.
Five mining lease holders, including Mid-east Integrated Steel Ltd, Aryan Mining and Trading Corporation Ltd, Kalinga Mining Corporation Ltd and Orissa Manganese, had approached the high court urging it to set aside the government decision.
The mining companies contended that the state government had neither the legislative nor the executive power to auction the mines following the enactment of mines and minerals (development and regulation amendment) act, 2010. The petitioners contend that the MMDR Act of 1957 and Mineral Concession Rule (MCR) of 1960 were two vital laws under which mining operations are regulated in the country. Meanwhile, the state government has decided to raise objections to the Centre’s mines ordinance at a meeting of mines ministers in New Delhi January 19 as it is unhappy with some provisions of the ordinance.
The state’s steel and mines minister Prafulla Kumar Mallick claimed in Bhubaneswar that the state was likely to suffer a loss because some provisions of the ordinance as the central enactment prevents it from auctioning 18 iron ore and manganese mines seeking second and subsequent renewal.
“We had decided to auction 18 mines. However, that will not be possible as the central ordinance extended the lease tenure of both the captive and non-captive mines,” he said.
Mallick said the cabinet had decided not to put mines recommended by it for the prospecting licence under auction. However, the central act cancelled such provisions and put all new mines to be leased out through auction route, he said.