Date | April 17, 2016: The recurring legal issue over the control of minerals between state governments and the Centre surfaced again when the Kerala government claimed rights over atomic minerals on the southern coast and the Supreme Court dismissed its appeal by majority with one judge dissenting.

In this case, State of Kerala vs Kerala Rare Earths & Minerals Ltd, the state government granted licences to the firm but within 10 days stayed its own order for re-examining the environmental impact on the crowded area and the priority of public sector firms vis-a-vis private miners. Rare Earth challenged the state government's action in the high court. It held that the state government was wrong. The government appealed to the Supreme Court, claiming right over the minerals.

While dismissing the appeal, the court pointed out that the approval of the Centre was also required under the Mines and Minerals Development Regulation Act and it had approved of licences in this case. The judgment further pointed out that under the state mineral policy, it was bound to list the minerals, which it controlled and the boundaries of areas where they can be exploited. This has not been done. The court gave leeway to the state government on this point and if it takes necessary steps, it would have better claim for granting licences according to its discretion.

(Source: http://www.business-standard.com/)