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    No amendment for Goa or leases lapsing in 2020: Narendra Singh Tomar

    Synopsis

    Nearly 300 mining leases across the country are set to lapse in 2020 under an amendment introduced by the Narendra Modi government in January 2015 making e-auctions mandatory in the grant of mining licences

    narendra-tomar-agenciesAgencies

    However, Tomar has ruled out this possibility.

    BHUBANESWAR: Union Minister for Mines Narendra Singh Tomar has ruled out any amendment to extend the leases of mines which will lapse in less than two years and said that the Centre will not intervene in Goa’s mining crisis either.

    Nearly 300 mining leases across the country are set to lapse in 2020 under provisions in an amendment introduced by the Narendra Modi government in January 2015 making e-auctions mandatory in the grant of mining licences.

    The amendment led to Goa ending up in a Catch-22 situation when the Supreme Court, on February 7, 2018, ruled that the BJP-led state government’s renewals of 88 leases, including that of Sesa Goa’s, was illegal. The court concluded that it (the renewals) had been done to circumvent the Centre’s 2015 Amendment.

    Manohar Parrikar’s coalition government has since been lobbying with the Centre for an amendment to extend these mines’ terms. However, Tomar has ruled out this possibility.

    “The Goa situation was brought about after a Supreme Court order. That this should be something that the court decides, is the view of the state government and the Centre. This concerns the state and the court –– minerals are the state’s property, the court order was directed at them -- they will have to do it…the Centre can’t intervene. Goa is working on placing its view before the court,” he said.

    In the city to attend an international conference of aluminium producers on Saturday, Tomar said his government had inherited a sector mired in uncertainties. “We were determined to tackle these challenges and introduced legislation that brings in transparency. As these five years come to an end, not one of those questions (uncertainties) remains unresolved,” said Tomar. “Neither the state nor Centre can allocate any lease today, unless it is through e-auction,” the minister said.

    As concerns of a shortfall in 2020 loom –– specifically of iron ore for steelmakers –– the ministry has been pushing for the exploration of the remaining resources so that the auction of these deposits to new owners can be done without delay.

    “Only those mines whose terms end in 2020 will be auctioned. To ensure that there isn’t any shortage of ore, the ministry is working with the Environment Ministry so that these leases can be auctioned seamlessly with environment clearances remaining valid (for the new lessee),” said Tomar. The minister ruled out the possibility of extending their terms to 2030, the cut-off granted to captive mines under the amendment.

    Meanwhile, while the ministry claims that nearly a hundred virgin deposits are ready to be auctioned, Odisha, one of the most important mineral-bearing states, is still waiting for either the Centre, or the courts, to clear a roadblock. The current cap of 10 sq kilometre (for iron ore) is keeping Tata Steel, whose plants (within and outside the state) depend on Odisha’s iron ore, from participating in the auctions.

    The Centre’s view that environmental violation was tantamount to illegal mining resulted in Odisha’s iron ore and manganese miners paying Rs 13,000 crore as fines.

    However, on the subject of Coal India being slapped with similar steep recovery notices, the minister said: “Coal India is operating as per legal procedures. Until they get a stay (from the coal tribunal) they can work. It’s an SC order and there’s nothing we can do about it under the circumstances.”


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