The recent meeting that the Chief Minister had with the MLAs from the mining belt was expectedly unanimous in concluding that mining operations must be started immediately. Among the options discussed was one where MLAs were of the opinion that mining leases must be given to the same lease holders, those who held and exploited the leases before the Supreme Court, earlier this year, quashed all second renewals and directed that mining operations be stopped.
With the quashing of lease rights, there are currently no lease holders in the State, and this is the best opportunity that the State has to clean up the sector that has been tainted by illegalities. Bestowing the leases to the firms that held them earlier would mean that the State loses the chance it has been given to restart mining operations on a clean slate. It let go of the first opportunity, when in 2014 the Supreme Court had lifted the ban on mining, the government promptly granted second renewals to existing mining lease holders permitting them to carry on operations without making any efforts to clean up the sector. Are we now going to waste yet another opportunity to begin afresh?
The argument being proffered to retain the same lease holders is that the firms have various corporate social responsibility (CSR) projects that the people living in the areas are availing of. The fear expressed is that the projects benefiting the people will be stopped if the leases are granted to new firms. A suggestion in this respect: Can’t these CSR projects be taken over by the government under the District Mineral Foundation? The funds collected under the District Mineral Foundation are yet to be utilised and are meant for the people affected by mining. The High Court of Bombay at Goa has asked the authorities to work out projects that can be taken up under the foundation. Mines Department has even invited proposals for projects that can be taken up with funds from these. CSR activities shouldn’t determine who is going to be allowed to exploit a lease. A part of the DMF funds could be utilised to meet the CSR expenditure, if there is a change in the lease operators, so as to not disrupt the social activity.
MLAs from the mining belt should also stop promoting the grant of leases to those firms that held them earlier. This goes against the spirit of the Supreme Court judgement and will not put an end to illegalities. It actually amounts to rewarding the very firms that are currently under the shadow of having operated the leases by virture of a second renewal that has been quashed by the highest court in the land.
An ordinance to extend the life of the leases and granting the leases to the same firms will only serve to keep mining in the same hands, controlled by a very few. The firms will continue to hold a kind of monopoly over mining operations in the State, which will also result in the State exchequer losing out on earnings that the auction mode of granting leases would bring in. The State, therefore, stands to lose on two accounts – not only are the losses from mining not being recovered, but the increased earnings that would come via an auction will also not be credited to the State accounts.
Legally too, under the MMDR Act, the way forward is auction of leases and not renewal of leases. The option of renewal of leases, therefore, should not arise and the local representatives would do well to stop making these demands from the government.
