215 mines’ licences in Odisha expired 20 years ago

By Abraham Thomas

In what has emerged as a shocking state of affairs of mining in Odisha, an expert panel constituted by the Supreme Court has learnt that leases of 215 mines operating in the State have expired as late as 20 years ago.

The panel, in its report, said that out of 341 mines existing in the State, only 126 operate on a valid lease. In addition, the mining activity was carried out in forest areas far in excess of land sanctioned under the lease. Many leases were yet to obtain the statutory environment clearances. These include nine mines operated by Mahanadi Coal Field Limited, a subsidiary of Coal India Limited.

Acting on the report, a Special Bench of the Supreme Court, comprising Chief Justice KG Balakrishnan, Justices SH Kapadia and Aftab Alam, on Monday issued notice to the State Government. The report prepared by the court-appointed Central Empowered Committee (CEC), which initiated an inquiry into the illegal mining business based on a news article, even suggested to the apex court to consider imposing a ban on mining till such mandatory clearances were not obtained by mine owners.

Senior advocate Harish Salve, as amicus curiae assisting the Bench, gave details about the extent of irregularity in mining prevailing across the State. Of the 215 expired mines, he said, “15 mines have expired more than 20 years ago while 17 expired 15 to 20 years ago.

The lease period of 38 mines expired almost 10 to 15 years ago, for 65 mines the lease expired 10 years ago and the remaining 80 mines are operating despite their lease expiring five years ago.” According to the CEC, these mines were operating under the “deemed extension” clause provided under Rule 24A(6) of Mineral Concession Rules 1960. Explaining the flaw being perpetrated under the garb of this provision, the report said, “The deemed extension clause is primarily meant to deal with contingency situation and to ensuring that the mining operations do not come to an abrupt end because of administrative delays in deciding on renewal applications.”

But the fact that it was misused to allow leases to exist beyond 10, 15, 20 years bothered the CEC. It said, “This provision is not meant to be availed of indefinitely.

Moreover, continuing mining over a long period of time without renewal of the mining lease becomes a potential source for serious illegalities and irregularities.”

It recommended the court to ensure the State Government introduces a time-bound plan to ensure leases are renewed in a time-bound manner. It also required the State Government to supply information on existing mine leases falling within a distance of 1 km of any national park or sanctuary. Giving an instance of a mine falling in a wildlife sanctuary, the panel has suggested that no further temporary working permits be granted in respect of mines existing in close proximity to wildlife sanctuaries or national parks. Commenting on the other illegal practice being perpetrated by the mine owners, the report said, “In 24 subsisting mining leases and the 30 expired mining leases working under the ‘deemed extension’ clause, the forest area approved under the Forest Conservation Act is lesser than the total forest area included in the mining lease approved under the MMDR Act, 1957.” In other words, the lease operators were mining on forest land far beyond the permissible limits.

Suggesting a way out, the CEC said, “All the mining lease holders in Odisha should be directed to pay the net present value (NPV) for the entire forest area, included in the mining leases.” With this amount expected to generate thousands of crores of rupees, the panel was of the view that within one month the operators should deposit NPV or risk forfeiture of mining rights.