PANJIM: In what appears to be a telling blow to the chances of the second renewal of any of the 27 mining leases of Goa, for which stamp duties have been paid, the 18th July amendment of the Mineral Concession Rules, states leases that leases waiting for their second renewals cannot continue mining under a “deemed renewal status”. In a sense this amendment is a legislative confirmation of the judicial order of the apex court
The amended Rule 24 A (6) of the Mineral Concession Rules is explicit that for the first renewal of mining leases (after 20 years), “if an application for first renewal of a mining lease made within the time referred to in sub-rule (1) is not disposed of by the state government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period of two years or till the state government passes order thereon, whichever is earlier” Most crucially the proviso 2 to this amendment states “provided further that the provisions of this sub-rule shall not apply to renewal under sub section (3) of Section 8 of the Mines and Minerals (Development and Regulation) Act, 1957
So what does this mean for Goan leases waiting for renewal: Simply this. All 27 leases which the government has decided to renew and have accepted stamp duty, but still haven’t been renewed, would have been under sub section (3) of Section 8 of the Mines and Minerals (Development and Regulation) Act, 1957, pertaining to second renewals. And as per the amendment the relief given for leases undergoing first renewals of continuing to mine under deemed renewal for two years, if the government does not renew on time, is not applicable to second renewals.
Says Harish Melwani, mine owner and former member of the Goa Mining Association “The plea of the companies that their leases should be renewed on grounds that the government has accepted the stamp duty for the same; becomes infructuous. They cannot be renewed. It now depends on the government, whether these leases should be granted afresh in the interest of mineral development and to whom. So there is no automatic claim over these leases of the last lessee”
The Federation of Indian Mineral Industries has reacted to this development with alarm, since this will affect the entire mineral sector. In a letter to the Union mines secretary, a copy of which is with Herald and the FIMI secretary general “ The repercussion of this is that all the second/ subsequent renewal applications pending in various states have become infructuous and the leases have lapsed immediately”
The FIMI also notes that in one case , the Mines Directorate Karnataka has stopped the movement of three lakh tons of ore sold though e auction of Sesa Sterlite Limited, after the July 18 notification of the Ministry of Mines, on the amendment of the Mineral Concession Rules. “Such a situation might be in other states as well. The whole mining industry has therefore been put into a serious situation”
Mine Minister Narendra Singh Tomar has ordered re-drafting of the bill for amending the act that lapsed with the end of the previous Lok Sabha’s tenure and take views of the concerned stakeholders before bringing it before the cabinet for approval to table in parliament. The ministry is also seeking opinion of the stakeholders on method of issuing the mining leases and a provision of 26 per cent profit sharing by the displaced population in case of the coal and lignite mines.
