TEAM HERALD
PANJIM: The Narendra Modi cabinet’s approval for an ordinance to auction iron ore and other minerals, is likely to have a major impact on mining operations. There are 64 iron ore mining leases in Goa that could, once the ordinance is gazetted following the presidential nod, have to be auctioned.
The state government till Tuesday had executed lease deeds with 29 mining leases for a period of 20 years.
Prior to suspension of mining activities in the state in September 2012, a total of 118 mining leases were valid of which 90 were operational. With the Supreme Court terming mining on deemed approval as “illegal”, the government went in for fresh applications for second renewal of mining leases and of the total 118, 54 lessees approached the Directorate of Mines and Geology and paid stamp duty for renewal of leases.
“The remaining 64 leases might have to be auctioned, if lessees fail to approach the government for renewal of their leases by paying stamp duty,” a senior Mines Department official said. He added, “These leases will go for competitive bidding, bringing in revenue for the state.”
All these 64 mining leases belong to the State government at present as per Supreme Court order, the official said.
A total of 54 mining leases had approached the department for second renewal. While in the first phase, soon after suspension, 28 leases paid the stamp duty, in the second phase post Supreme Court’s 2014 verdict, 17 leases paid the stamp duty for renewal. The government collected Rs 700 crore as revenue from all these 45 leases.
So far the government has executed lease deeds with 29 mining leases under section 3(8) of the Mines and Minerals Development Regulation (MMDR) Act. These leases will now have to approach the Ministry of Environment and Forest (MoEF) for environment clearances (ECs), followed by clearance from Union Mines Ministry, Indian Bureau of Mines (IBM) and State authorities.
The ordinance that was approved by the Union cabinet on Monday would pave the way for introduction of competitive bidding for allocation of ore and other minerals. It also enables creating district mineral funds for the welfare of the project-affected people.
The mining industry has reacted cautiously to the Centre’s decision. “Let government make the ordinance public or available to stakeholders. We can’t comment before that,” Goa Mineral Ore Exporters Association (GMOEA) secretary Glen Kalavampara said.
Mine owner Shivanand Salgaocar also refused to comment stating that he would like to study the ordinance before reacting.
