Team Herald
PANJIM: Iron ore mining companies have expressed reservations over submission of a bank guarantee assuring ‘No Pollution’ to Goa State Pollution Control Board (GSPCB), that has declined to grant Consent to Operate under the Air and Water Pollution Acts to mines in the absence of the guarantee.
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 for considering their application for renewal of consent to operate to mines.
In all 18 lease holders have been asked to produce the guarantee based on the area of their leases.
Mining companies, while expressing reservations, were of the view that since lease holders submit a bank guarantee to the tune of Rs 3 crore, at the time of approval of the mining plan by Indian Bureau of Mines (IBM), the Board should not insist on further bank guarantee, as it amounts to duplication.
They further stated that the bank guarantee issued to IBM is related to ensuring environmental protection measures.
Mining company representatives suggested that instead of a bank guarantee being sought as a ‘condition precedent’ for issuing consent to operate, the Board could consider incorporating the condition in the consent to operate.
However, the Board declined to accept the lease holders’ suggestion and stated that the money deposited with IBM is in the event of any violation of conditions of the mining plan, wherein environmental protection measures is also a condition, however, in case of GSPCB, the bank guarantee is sought strictly in respect of implementing the pollution control measures by the lessee, failing which the amount would be confiscated.
The decision to demand a bank guarantee was taken after mining firms were found to be involved in violating the conditions laid down in the Consent to Operate with regard to pollution.
