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Bhubaneswar, Jan 19: The state government Monday came down heavily on the Centre for its proposed changes in the mines ordinance to extend the tenure of mines for second and subsequent renewal beyond 50 years.
Terming these provisions in the Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015, as a bid to favour the rich, state steel and mines minister Prafulla Mallik said the move will only benefit a small group of ultra rich people, who have already exploited the mineral wealth of the country for at least 50 years.
Speaking at the mines ministers’ meeting in New Delhi, the minister said as the existing lease holders have no rights for second and subsequent renewal and they have already enjoyed the largesse for over 50 years, there is no justification to make them richer in next 5 years by shutting doors on new aspirants.
Strongly opposing the provisions 8, 8A (5) and 8A (6), the minister urged the Centre not to extend the largesse for such lease holders which can only help them make further profit.
“Auction of lease would provide much needed fiscal resources to the state for funding welfare and development activities. However, we are deeply disappointed that the Centre has inserted an amended section 8 and a new section 8A in the MMDR Act to extend the validity of all existing leases, including under second and subsequent renewal by a period up to March, 2020 for non-captive mines and till March, 2030 for captive mines without any apparent justification,” Mallik said.
He said the provisions for renewal of lease at the end of 30 years and thereafter every 20 years have been replaced by extending the validity of existing lease to 50 years.
“We are pained by the fact that these provisions were not in the draft proposal circulated for consultation with us and have been incorporated in the final ordinance without consulting the state government,” the minister revealed.
Drawing the Centre’s attention to section 10A (2) (b), which grants rights to the holders of reconnaissance permit and prospecting license to obtain a mining lease without going through the auction route, the minister said this restricts the number of leases, which could be settled by auction and hence needs to be reconsidered.
