Odisha to air reservations over mines ordinance today

Odisha Sun Times Bureau
Bhubaneswar, Jan 19:

The Odisha government would voice its reservations over introduction of new provisions in the Mines and Minerals Development & Regulation – MMDR Amendment Ordinance, 2015 at a meeting convened by Union mines minister Narendra Singh Tomar which began in New Delhi today.

‘‘We would vehemently oppose the mines ordinance at the meeting. We would ask Centre as to why it is dragging its feet on the issue of mines seeking second and subsequent renewal through auction? With the implementation of mines ordinance, Odisha would incur revenue loss to the tune of Rs 5000 crore every year,’’ state Steel and Mines Minister Prafulla Kumar Mallick told reporters here on Sunday evening before leaving for New Delhi.

The state government had planned to e-auction 18 mines. However, the ordinance has extended validity of mining leases by five years and 15 years for non-captive and captive uses respectively. We would demand to exclude this provision from the ordinance, Mallick said.

Citing another instance, Mallick said, the state cabinet had earlier decided not to put the mines already recommended by it for the prospecting license, as in case of Posco and Bhusan Steel, under the auction. However, these stand cancelled with such provisions in the Central ordinance. The ordinance grants longer tenures over mines, increasing the period from 30 years to 50 years and also removes the concept of renewal of leases. We would demand to amend such provision in the Act, Mallick added.

Rejecting the claims of Centre that the state powers have increased, Mallick said the state government would act as post office as it squeezes its jurisdiction.

When the Centre would take a call on the clauses of auction of the mines, where does the state government come into picture, the state government questioned. The decision taking powers lies with the Centre, he said.

In addition to this, the state government would demand collection of mineral royalty and oppose the provision of approval from Centre after auction, he informed.

Notably, the ruling Biju Janata Dal (BJD) had criticised the promulgation of the mines ordinance by Centre terming it ‘undemocratic’ for ignoring its demands made in the draft Bill.

Earlier on January 5, the Odisha Cabinet had decided to allocate all mines, barring coal mines, in the state through the public auction route. The highest bidder in the public auction was to be awarded the mineral bearing mines and all mines in the state barring coal awaiting second and subsequent renewals of their leases were to be allocated through the public auction route.

However, Odisha High Court ruling on January 16 threw a spanner in the state government’s decision to auction all non-coal mines in the state.