PANJIM: Following iron ore mining companies expressing reservations over submission of bank guarantees for renewal of consent to operate as an assurance to no pollution, Goa State Pollution Control Board (GSPCB) has decided to seek legal opinion on the same.
The Board met on Friday under the chairmanship of Chief Secretary Dharmendra Sharma and decided to seek legal opinion on whether it can seek a bank guarantee separately or this should be part of the consent to operate that will be granted to mining leases.
“We have decided to go for legal opinion. The companies have already challenged the same before the court. Hence we are seeking all legal views,” sources said.
A leading mining firm, Litho Ferro, has managed to get a stay from the High Court over the GSPCB order asking them to pay Rs 12.5 lakh as bank guarantee to consider their application for renewal of consent to operate to their mines.
There are 18 lease holders that have been asked to pay the guarantee amount based on the area of the lease.
Mining companies, while expressing reservations, were of the view that since the lease holders submitted a bank guarantee to the tune of Rs 3 crore during the approval of their mining plan by Indian Bureau of Mines (IBM), the Board should not insist on further bank guarantee, as it amounts to duplication.
Mining company representatives suggested that instead of bank guarantee being sought as a ‘condition precedent’ for issuing of Consent to Operate, the Board could consider incorporating the condition in the consent to operate.
