SC may ask Odisha to speed up grant of fresh mining leases, ban mining in state for 3 months

NEW DELHI: The Supreme Court on Monday hinted at a Goa-style ban on all mining in Odisha for three months till the state government sorted out all mining illegalities and granted fresh leases.

A bench, comprising justices a K Patnaik, FMI Kalifullah and S S Nijjar hinted as much before they reserved their orders on the issue. The court is dealing with a PIL filed by NGO common cause pointing out major illegalities in mining in Odisha.

This despite opposition from state counsel P P Rao and ASG K V Vishwanath, for the steel ministry, opposing any ban.

Odisha contributes more than half of the country's iron ore production today and is home to the captive mines of Tata Steel and Steel Authority of India.

The state sought six months to take a call on grant of mining leases and no ban in the meantime in national interest.

The ASG also warned against a ban saying it would hurt the steel industry and the economy.

Many mining leases in the state are running on deemed extensions like Goa, which the court decided were not valid under law.

Of the 56 operating leases in Odisha, 26 fall under second and subsequent renewal. This include six of Tata Steel’s iron and manganese leases and three of SAIL’s, leases held by Roongta’s mines.

Aditya Birla group’s Essel Mining, a mine owned by KJS Ahluwalia and two mines owned by state-owned PSU Orissa Mining Corporation.