BHUBANESWAR | Jan 09, 2017: The applications for grant of mining lease of nearly 50 blocks are set to lapse as the state government could not execute the lease deeds with the applicants by January 11.

The validity of blocks will lapse as the letters of intent were granted to the developers after the implementation of the New Mines and Minerals Development and Regulation (MMDR) Act-2015. According to the Act, lease deeds should be executed by January 11.

The mining blocks, applications for which are pending, include iron ore, manganese and chromite. The applications are pending both for captive and merchant mining.

The chief minister's office has already cleared three applications, while it is likely to clear seven to eight more applications in a day or two.

"It would not be possible to clear the remaining projects since they lack a number of clearances," said a senior official of the steel and mines department.

The execution of the lease deed is not possible as majority of the applications lack forest and environment clearance.

Union mines secretary Balvinder Kumar during his meeting with chief secretary A P Padhi on November 11 had asked the state government to initiate action for executing lease deeds with the project approvals in view of the growing demand of ore (raw material) by mineral-based industries. He had also sent a series of letters to the chief secretary in this regard.

The execution of the lease deeds with the developer was also crucial in view of the sharp fall in collection of mining revenue during the current financial year.

Earning from mining sector is estimated at around Rs 2,900 crore (up to December) as compared to the previous year's collection of Rs 3,700 crore, sources in the steel and mines department said.

If the trend is any indication, it would be difficult for the state government to achieve its target of collecting mining revenue to the tune of Rs 6,700 crore by the year-end (March, 2017).

(Source: http://timesofindia.indiatimes.com/)