PANJIM: Directorate of Mines of Geology (DMG) on Wednesday issued an order renewing 13 mining leases under section 8(3) of Mines and Minerals Development and Regulation (MMDR) Act, 1957.
However, the State government has specified that in the interest of ecology and environment, the approved lease areas could be reduced in future. The leases have not been renewed since 2007.
In the 11-page order issued this evening, DMG also reserved the right to cap the iron ore production of each mining lease irrespective of environment clearance (EC) limits specified by the Union Ministry of Environment and Forest (MoEF). DMG has also maintained that it has all the powers to initiate action against the mining lease, if found in any kind of violations post renewal.
Following approval from Chief Minister Manohar Parrikar, Mines Director Prasanna Acharya issued second renewal order to the 13 mining leases.
“The second renewal of the mining leases is decided under section 8(3) of the MMDR Act 1957 read with Rule 24(A) of MCR 1960 and Rule 63 (A) (C) and section 20 of MMDR,” the order issued by Acharya reads, adding that the renewals are subject to fulfillment of certain conditions.
With this order, the lease holders can now mine the ore after obtaining all other permissions, including the EC from MoEF, permission from Indian Bureau of Mines (IBM) and consent to operate under Air and Water Act from the Goa State Pollution Control Board (GSPCB). Government has said that it expects fresh iron ore production in the State to resume by January, next year.
Mining operations in Goa have been halted since the suspension of the industry by the government in September 2012. Post suspension, government received 40 applications for second renewal of mining leases, however, only 28 lease holders paid the stamp duty. Accordingly, out of the total 28, in the first phase government issued an order for 13 leases.
The order states that the renewals are based upon ‘The Goa Grant of Mining Lease Policy’ decision which is in accordance with MMDR Act and Constitution so also orders of Supreme Court and High Court.
“The order does not absolve past dues to State government nor for any action that may be taken under MMDR Rules for past action,” the order said adding that it is mandatory for the lessees to deposit 10% of its sale value to Goa Iron Ore Permanent Fund, as directed by the Apex Court.
“Order has reserved the right to cap the production irrespective of EC limit specified by MoEF and that to reduce the lease areas in the interest of ecology and environment,” the order mentioned.
The iron ore which has already been extracted and piled up at the lease areas remains the property of the State government as per the SC order and the State government will continue with its process of e-auctioning it, Acharya said.
There are balance 15 mining leases that have paid the stamp duty, however, only ten would be considered for renewal as the five leases belonging to Dempo Mining Corporation Limited, now operated by Sesa Goa are being investigated for violation under section 37 of MCR (illegal transfer).
Meanwhile, with the Supreme Court appointed capping committee recommending iron ore cap of 20 million tonnes annually, the State government is likely to come out with a comprehensive capping policy, wherein the capping would be done at the individual level.
Sources said that government will cap the production of iron ore irrespective of the environment clearance limit specified by the MoEF. “For this, a comprehensive capping policy would be worked out, wherein the 20 million tonnes would be distributed at individual level per annum,” sources said.
Government has also worked out modalities to cap the ore to be carried per truck. The notification in this regard is expected this month.
