Bhubaneswar | Apr 09, 2015: The Union Mines Ministry has asked the state government to initiate action for auction of mining leases, clearing air over speculations that the state government’s request to grant iron ore lease for steel giant Posco might be considered.
“We had requested the Centre to consider Posco's case in view of an international commitment. But now they are saying as per new laws, auction is the only way to grant a mining lease to Posco,” said Prafulla Mallick, steel and mines minister of Odisha government.
In the Mines Minerals Development and Regulation (MMDR) Act, 2015, the rules were amended to grant mining leases only through auction route, replacing earlier provision of preferential allotment of leases.
The state government earlier this year had asked the Centre to consider granting a lease in favour of Posco, citing that the recommendation for providing Posco prospecting licence for Khandadhar iron ore reserve in Sundergarh district was sent before the new act came into effect.
Posco, in a letter sent to the Odisha government last year, had indicated that it was not interested to set up its plant in the state unless it is allotted iron ore lease.
The state government said it is still considering options to find out solution for it. “We will take a decision after discussion (with the officials and chief minister),” Mallick added.
The Centre has, meanwhile, issued draft rules for auction of mining leases and has invited suggestions of all stakeholders including state governments.
“Henceforth, all mineral concessions will be granted by the respective state governments only through auctions, which will bring greater transparency and remove discretion in allocation of mineral resources,” said a press statement issued by the Union ministry today.
The state government last year had sent a recommendation to the Centre in favour of Posco before the commencement of the new act.
The Union government returned back prospecting licence (PL) recommendation files sent by the Odisha government twice, asking it to follow proper procedures before sending its recommendation. In November 2014, the state government sent a revised recommendation, requesting the Union government to grant PL for 2,083 ha of the Khandadhar iron ore deposit, which was notified by it earlier.
But the state is yet to send the recommendation for non-notified area within the originally proposed 2500 ha iron ore reserve boundary, that the state intended to hand over to Posco.
(Source: http://www.business-standard.com)
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