BHUBANESWAR | May 15, 2015: The state government may not allow more mines to operate after receiving flak from opposition parties for extending lease validity of some mines, which were found to have violated rules both by Shah Commission and Supreme Court appointed Central Empowered Committee.

After Narendra Modi government amended the MMDR Act, the state government quickly announced to extend lease period of 29 mines and asked the owners to sign supplementary lease deeds within three months.

On May 5, the state government signed lease extension deed with 10 mine owners, a move which received criticism from opposition parties. The government also claimed to earn Rs 600 crore from stamp duty and registration fees by signing supplementary lease deeds.

State Congress president Prasad Harichandan alleged that the state government renewed leases of a number of mines on which Supreme Court order is awaited. The BJP said it was gross abuse of power by the state government as it took a decision on a matter, which is sub judice.

Steel and Mines minister Prafulla Mallik had said, "There is nothing illegal since the renewals were granted according to the new MMDR Act."

Director of mines Deepak Mohanty said there was no immediate plan to extend lease period of more mines.

"While the government was planning to examine reopening of 41 mines through an inter-departmental committee, it was postponed due to certain reasons," said an officer of mines department. Total 108 mines are closed in the state for violation of different norms.

The Shah Commission of Inquiry, appointed to look into the mining scam, had recommended a CBI probe into the illegalities. The panel pegged illegal mining at Rs 60,000 crore.

Net present value worth Rs 714 crore is outstanding against 111 mining lessees in the state. When forest land is diverted for industrial purposes, a fee is imposed on mine owners or promoters of industries. The fee is called net present value.

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