TEAM HERALD
PANJIM: There’s a lot that can happen in a week’s time. From December 28, 2014 to January 5, 2015, in a spate of two cabinet meetings, the draft of most crucial section 8 of the MMDR Act was changed to ensure that existing mining leases, renewed afresh, as per the High Court order, could continue operations till 2027, ie 20 years after their renewal in 2007.
WHEN LESS BECAME LATER: In the first draft of the Mines and Minerals (Development and Regulation) Amendment Ordinance 2015, finalised on December 28, 2014, of which Herald has a copy of and reported, Section 8A (2) states, provided that mining leases which are operating under first or subsequent renewals AS ON THE DATE of commencement of the Ordinance shall be allowed to operate from the date of commencement of the Ordinance till a period of fifteen years, in case the lease has been granted on captive (not relevant to Goa) AND FIVE YEARS if otherwise, as the case may be whichever is LESS.
In the final gazetted Ordinance dated January 12 (but finalised in the cabinet meeting of January 5), see the changes in Section 8A (6). “The period of lease granted before the date of commencement of the MMDR Ordinance 2015, where mineral is used for other than captive purpose (Goa relevant), shall be extended or deemed to have been extended upto a period ending on 31 March 2020, with effect from the date of expiry of the period of renewal last made or till the completion of the renewal period, if any, or a period of 50 years from the date of grant of such lease, whichever is later.
Thus effectively speaking, the impact will be as follows
a) Leases that have been renewed (or paid stamp duty) under second renewals (wef 2007) can continue operations till 2027.
b) Leases that have not been renewed (subject to all the terms and conditions of the previous lease period having been complied with) will be given a blanket extension till March 31, 2020.
c) New leases that will be henceforth granted through will be for 50 years.
IMPORTANT POINT TO BE CONSIDERED, STILL NOT EXPLICIT
Let us re-look at this paragraph in Section 8A (6) which states that leases shall be extended or deemed to have been extended upto a period ending on 31 March 2020, or till the completion of the renewal period, if any, or a period of 50 years from the date of grant of such lease, whichever is later. This if read with Section 8A(3), “All mining leases granted BEFORE the commencement of the Mines and Minerals (Development and Regulation Ordinance), 2015 shall be deemed to have been granted for a period of 50 years. With the majority of leases getting converted from concessions to grants in 1987 there is one school of thought which believes that a blanket extension of 50 years from 1987, ie 2037 will be given for these leases. However, as a very senior industry captain, many of whose leases have just been renewed, pointed out “let us stick to the basics. NO lease can be renewed after its second renewal. The second renewal for most of Goa leases has (being done) wef. November 2007. So notwithstanding anything else, the life of Goa leases renewed, ends in November 2027 and those not renewed ends on March 31, 2020.”
