Iron ore mines leased out to Dempo Mining Corporation Limited, and subsequently sold to Sesa Goa Limited in 2009 by Dempos, would not be taken up for renewal, despite having paid stamp duty. Sources indicated, that these five leases with a total area of 480 hectares are being investigated for violation of section 37 of the Mineral Concession Rule (MCR) 1957MCR, and indicted by Justice M B Shah Commission and Supreme Court appointed central empowered committee (CEC). As per Rule 37, the lessee shall not, without the previous consent in writing of the State Government assign, sublet, mortgage, or in any other manner, transfer the mining lease, or any right, title or interest therein.
“Here too, the leases were transferred from one company to another without written consent of the government,” sources added.
In 2009, Sesa Goa Limited, a subsidiary of Vedanta Resources acquired iron ore mining company Dempo Mining Corporation Private Limited for Rs 1,750 crore. Dempo had mining leases of over 1,800 hectares in Goa.
As per High Court order, government was directed to execute the mining leases of 28 mines which had paid stamp duty for second renewal of their leases in 2013. The applications of these leases for second renewal were pending since 2007 and were accordingly working under deemed provisions till September 2012, when government imposed temporary suspension of mining operation in the State.
With Supreme Court terming mining operation on deemed provision as illegal, the State government on September 30, drafted The Goa Grant of Mining Leases Policy, under which the mining leases would be renewed under section 8(3) of MMDR Act.
Highly placed sources at the Secretariat confirmed that the policy is currently with the Law department, being vetted. “Chief Minister has issued directions to the mines department to begin the process of signing lease agreements and accordingly the department is verifying the legality of the mines whose renewal will be taken up in the first phase,” sources said.
Accordingly, of the total 28 mines, 23 mining leases are identified for renewal in the first phase. These are mines whose operators were involved in minimal violations.
