Centre keeps cancellation of NMDC’s Donimalai mining lease in abeyance

Our Bureau Hyderabad | Updated on August 21, 2019 Published on August 21, 2019

The Ministry of Mines, Government of India, has kept in abeyance the cancellation of the mining lease of Donimalai mine by the Karnataka Government extended to NMDC.

The Joint Secretary and Revisionary Authority of the Ministry, Anil Kumar Nayak, in his order, stated that though the State Government was not present to put forth its views, the Revisionist (NMDC) made a strong case for stay of the Impugned Order and consequent action thereon.

A strong case

The order ruled that considering the order of the Karnataka High Court, which set aside the condition of levy of premium of 80 per cent for extension of lease and the submissions made by the Revisionist, this Authority comes to the conclusion that it would meet the ends of justice if the impugned order dated August 17, 2019 and consequent action thereon is kept in abeyance.

The Karnataka Government has issued a notice cancelling the mining lease extension since November 2018 and recently decided to auction it. Aggrieved by the order NMDC sought relief.

Crucial for NMDC

The Donimalai mine is crucial for NMDC and contributes about 6 mt per annum and accounted for nearly 18 per cent of the NMDC output.

After the renewal of the mining lease in November 2019, Karnataka sought premium of 80 per cent for lease extension, which NMDC declined.

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Published on August 21, 2019
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