CENTRE GETS TOUGH ON MINE RENEWALS

Now, environmental clearances have to be sought two years in advance

Now, environmental clearances have to be sought two years in advance

GLENN COSTA

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PANJIM: The Centre’s directive that all mining leases, due for renewal, have to apply for environmental clearance two years in advance of the expiry of the lease, could further complicate matters for the mining industry, as a majority of the mines in the State are up for renewal.

The State government has started the process of renewal of leases after the deemed renewal regime was practiced for so long.

The Shah Commission of Inquiry had come down heavily on the deemed renewals under which state authorities were allowing mining operations to continue in the State. The recent notification of the Ministry of Environment and Forests says that “Prior environment clearance is required at the stage of renewal of mining lease for which an application shall be made up to two years prior to the due date for renewal.”

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According to the notification, “…the prescribed period of one year prior to the due date for renewal of mining lease should be increased to two years for submitting application for environmental clearance. And whereas, it has been further decided to provide a period of two years from the date of issue of the notification vide S.O 695(E), dated 4th April, 2011 for obtaining environmental clearance for all such leases which had been operating as on 4th April, 2011 with requisite valid environmental clearances, whose renewal was due on or after 4th April 2011.”

However, the notification also provides that whenever the “Central Government considers that prohibition or restriction of any industry or carrying on any processes or operation in any area should be imposed, it shall be given notice of its intention to do so. And whereas sub-rule (4) of rule 5 of the said Environment (Protection) Rules provides that, notwithstanding anything contained in sub-rule (3) whenever it appears to the Central Government that it is in public interest to do so, it may dispense with the requirements of notice under clause (a) of sub-rule (3).”

The Department of Mines and Geology on Monday began the process of renewing mining leases pending since 2007 and getting an ‘in-principle’ approval for renewal of one mine. The department’s proposal was cleared ‘in principle’ by Chief Minister and Mines Minister Manohar Parrikar and then sent to the Advocate General, Atmaram Nadkarni for legal vetting.

The government also decided that all mining leases will have to make payments according to the new rules after the Stamp Duty Act has been amended on a proposal by the Revenue Department. It imposes on every instrument of grant or renewal of a mining lease, the stamp duty equivalent to 15 per cent of the amount of royalty that would come out of the mineral extracted annually as permitted under the environmental clearance issued for a mining lease, multiplied by the period of the lease.

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The State had suspended environment clearances of 93 mining leases in September last, pending verification of documents in the wake of the Shah Commission stating that permission was given based on wrong facts. The mine owners would have to submit their documents which are required for getting the environment clearances, Minister of Environment and Forest Jayanti Natarajan had told reporters when she visited the State.

Two days after the Shah Commission report was tabled in Parliament (on September 7), the State government had suspended all mining leases.

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