TEAM HERALD
PANJIM: Ruling out the auction of mining leases for not being permitted under the Mines and Mineral Development and Regulation (MMDR) Act 1957, the State Cabinet on Wednesday granted an “in principle” approval to the Goa Grant of Mining Leases Policy 2014, wherein it decided to execute the iron ore mining leases under Section 8(3) of the Act on case to case basis, for the best interest of mineral development. However, the government clarified that it cannot go ahead with the signing of lease agreements with those leases, that are under the Shah Commission, PAC scanner for violations of Mineral Concession Rules 1961.
Addressing a press conference after his Cabinet passed a resolution to grant in principle approval to the policy prior to legal vetting and concurrence from the Finance Department, Chief Minister Manohar Parrikar also announced that the temporary mining suspension order imposed by his government on September 10, 2012, would be lifted on case to case basis once the lease deeds are executed. “If everything goes smooth(ly), mining activities including production would resume by January, next year,” he said adding that signing of lease agreement with the legal leases would begin from October 15. In the first phase total 15-20 leases would be signed.
“The State Government has to come to the conclusion that renewal of the mine is in the interest of mineral development that there is a need to renew the mining lease,” Parrikar said.
Following the Supreme Court judgment that gives State the power to take a policy decision on granting of mining leases for mineral development, the State Cabinet this afternoon approved ‘The Goa Grant of Mining Leases Policy’, 2014, deciding to renew the mining leases under section 8(3) of the MMDR Act, subject to compliance with the conditions which would be laid down by the government including strict pollution control measures.
The Supreme Court in its judgment on April 21, 2014 declared that all the mining leases operational in the State under deemed provision as “illegal”.
“The formation of the entire Policy is aimed that it is required to balance various interests having regard to the Principle of Sustainable Development; but by keeping in mind the commercial interest of the present state of economy, the interest of the labour class, the interest of the working class including other staff, the interest of the market in the mining localities, the interest of the public sector, the interest of the existing mining lease holders and the overall welfare needs of the State; and require all urgent infrastructural development. By balancing all these interests the present Policy has been formulated by the State Government,” the policy reads.
The Chief Minister said that nearly 1.50 lakh people are directly or indirectly dependent on the business and there is over Rs 850 crore loan liabilities while state revenue loss was around Rs 3000 crore, all the issues has been considered while deciding the policy.
“This decision is taken in accordance with the Provisions of the MMDR Act and the Rules made there under and in consonance with the Constitutional Provisions,” he said.
The Chief Minister said that the mining lease holders had applied for the second renewal within the time and the fact that the application for second renewal were not disposed off by then State government, the lease holders cannot be blamed. “MMDR Act does not allow auction of leases. Supreme Court has also ruled out the demand of Goa Foundation (petitioner),” Chief Minister said adding the only two options were automatic renewals and the renewals for mineral development.
Chief Minister said that ‘though the government has in principle decided to follow the route of the renewal of leases, it would not be one until the inquiry initiated pursuant to the judgment of Supreme Court against those mine owners for violating Rule 37 (transfer) and Rule 38(amalgamation) of MCR is completed”. Also those who have created major violations like encroachment outside lease areas, over production, non payment of royalty, cases pending before special investigating team and others are investigated, he added.
For the same, Government in its policy, has classified 90-odd mining leases, operational prior to suspension in 2012, into three categories – 1) mines who have done no violation or minimal violation 2) those indicted for violation of rule 37 and 38 of MCR 3) major violators.
The policy would be sent for legal vetting before law department and concurrence from the Finance Department would be obtained.
