New MoEF order another blow to mining firms

Ministry directs States not to resume mining operations until lessees pay compensation levied for illegal mining; Rs 1500 crore due to be recovered from 12 lease holders in State

Team Herald
PANJIM: In what could have further serious implications for iron ore mining firms in Goa, the Union Ministry for Environment and Forest (MoEF) has directed all State governments to ensure that no mining operations resume, until the lessees pay the entire compensation levied for illegal mining. In Goa, an amount of Rs 1500 crore is due to be recovered from 12 lease holders, who were issued notices in September last year.
The order comes as a part of compliance of the Supreme Court verdict in the Odisha illegal mining case. The Supreme Court had directed that amounts due from leaseholders be recovered and steps be initiated to prevent such incidents in future.
“State Government concerned shall ensure that mining operation shall not commence till the entire compensation levied, if any, for illegal mining paid by the project proponent through their respective department of Mining and Geology, in strict compliance of judgment of Supreme Court dated August 2, 2017,”  the Office Memorandum (OM) issued by MoEF Advisor Surender Kumar, reads. 
Further, the Ministry has decided to make it mandatory for the project proponent to give an undertaking by way of affidavit to comply with all statutory requirements and judgment of Supreme Court, for seeking ECs for the mines. The undertaking, inter-alia, includes commitment of the lessee not to repeat any such violations in future. “In case of violation of undertaking, the Terms of Reference (TOR) or EC shall be liable to be terminated forthwith,” the OM added. 
Iron ore mining operations in the State are under suspension since March 16 following the Supreme Court order dated February 7, that quashed second renewals granted to 88 leases. 
The Justice M B Shah Commission, constituted to probe alleged instances of illegal mining, had indicted several mining leaseholders and others for illegal mining and had estimated the loot to the tune of Rs 35,000 crore. The State government had, however, played down the quantum of illegal mining to Rs 3000 crore.
Besides, the Comptroller Auditor General (CAG) had exposed Rs 1900 crore illegal mining by lease holders between 2009 and 2016 in violation of the mining plan and ECs. 

Share This Article