Bhubaneswar: Expressing concern over the under-utilisation of leased out mines resulting in revenue loss to the state exchequer, the Orissa High Court has directed the state government to carry out the mining activities through the National Mineral Development Corporation and further ordered that the expenses incurred in this regard is be borne by the lessee.
The Division Bench of Chief Justice Harish Tandon and Justice M S Raman, adjudicating a Public Interest Litigation (PIL) filed by Bhubaneswar-based Citizens’ Action Forum, issued directions in this regard Thursday.
“We, therefore, direct the state government to invoke the provisions contained under Rule 12 (1) of the Concession Rules, 2016 to carry out or perform the statutory obligations in order to ensure the optimum utilisation of the mines through the National Mineral Development Corporation, which is owned and controlled by the Central government,” the court said.
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“The aforementioned direction shall not only ensure the optimum utilisation of the mines, but also eradicate any burden on the government exchequer,” the division bench ruled in the order.
The petition highlighted the discontinuous production, a chronic under-utilisation by the mining lease holders despite the statutory duty cast upon it under the Mines and Minerals (Development and Regulation) Act and the Concession Rules, 2016, for optimum utilisation in the public interest.
It further highlighted some of the mining blocks to corroborate the fact of under-utilisation not only in one year but continuously for several years, resulting in deprivation of a statutory imposition under the statute, but also affecting the livelihood of a large number of people.
The PIL pointed out the average minimum utilisation of the ores and the huge loss suffered by the state, which would roughly amount to Rs 4,000 crore.
Earlier, the state government, in an affidavit, stated that the majority of the mining lease holders have not secured the optimum extraction of the iron ore.
The Concession Rules, 2016 laid conditions that in the event, the mining lessee failed to carry out or perform any of its obligations there under or under the lease deed within the specified time, it is obligatory on the part of the state government to perform or carry out the mining activities, and the expenses incurred in this regard shall be borne by the lessee.
