Mumbai | Jan 22, 2015: Days after revoking the earlier suspension of mining operations, the government of Goa has opened the minerals exploration sector, clearing 85 licences, including the ones of Sesa Sterlite. About half of dozen have started exploration.
The policy published in Official Gazette not only claimed to have gone by a judgement of the Bombay High Court at Goa regarding renewal of leases but said it apprehended entry of mining mafia in case auction route was opted for.
The State Government after having considered the matter from every possible angle, decided to exercise its power under Section 8(3) of the Mines and Minerals Regulations and Development(MMRD) Act, 1957, and to consider each of the cases on their own merits and subject to compliance with the conditions including for strict pollution control measures.
The government's policy also states that those mining lessees who were found to be violating rule 37 or rule 38 of the Mineral Concession Rules 1960 or otherwise indicted in the report of the Justice Shah Commission/Public Accounts Committee report of Goa Legislature or found to be engaged in any kind of illegality of whatsoever nature such as illegal sale of ore, sale of royalty challan, shall not be considered for renewal of the mining leases.
The government policy seeks to divide lessees into three categories -- those who have no violations or very minimal; those who have violated and those who have substantially violated laws and regulations.
In the first case mining leases will be given, in the second the applications will be considered provided they pay appropriate penalty or fines and the third case shall reject the application for second renewal.
The policy also speaks of creation of , by payment of 10% of the sale proceeds, a Goa Mineral Permanent Fund.
The State government has spoken of risk factor involved if it opted for auction mines, though it could have brought in possibly and probably a greater revenue share for the State. It was vary of “inviting unknown business interest, who are often referred to as mining mafia, to carry out and undertake mining activities causing risk and danger to the several areas including ecological factors.”
The government has followed this policy document to renew as many as 87 leases in the State and could possibly renew more through the same method of granting leases.
(Source: http://www.business-standard.com/)
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