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The Odisha Government is set to issue iron ore mining lease “renewal” orders, pending for years, to Tata Steel Ltd and Steel Authority of India Ltd (SAIL).
The renewal is for the next 20 years.
After the Supreme Court ordered stoppage of mining operations in 26 mines on May 16, including the captive mines of Tata Steel and SAIL, citing invalid lease, the State Government fast-tracked the process of renewal of mining licences.
Sources in the mining department told Business Line the renewal proposals were at an advanced stage of approval. “The proposals are now awaiting final clearance by the Chief Minister’s office”, said an official involved in the process.
SAIL and Tata Steel officials said they are expecting a formal issue of renewal of orders any time soon.
As a first step for streamlining the process, a Government-appointed panel, set up for looking into the lease renewal issue, recommended renewal of four mines of Tata Steel and two of SAIL last week.
Tata Steel’s iron ore mines – Katamti, Khondaband, Joda East and West – and SAIL’s Bolani and Kalta are among the mines suggested by the panel for renewal.
Besides, a manganese ore mine of Tata Steel and a mine belonging to State Government-owned Odisha Mining Corporation (OMC) have also been recommended for renewal. Before the Supreme Court ordered operation stoppage at these mines, they were being operated on second or third deemed renewals and had all other clearances. The Apex court wanted the mines to be run on clear renewal of leases, issued by the State Government, instead of the ad hoc system of “deemed renewal”. The Supreme Court also wanted the State Government to act expeditiously on the subject.
The court asked the State to complete the process of lease renewal within six months. The State Government accorded priority to the Tata Steel, SAIL and OMC mines in the process.
According to estimates, six captive iron ore mines of Tata Steel and SAIL accounted for iron ore production of about 18-20 million tonnes a year.
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