The Supreme Court has directed resumption of operations by 18 mining companies in Karnataka on the basis of the recommendations of the Central Empowered Committee (CEC).
A three-judge Bench of Justices Aftab Alam, K.S. Radhakrishnan and Swatanter Kumar passed this order on Monday on the basis of the CEC’s report that these mines in Category A had not indulged in violations and that mining operations could be permitted subject to their fulfilling certain conditions.
In July last year, the court had banned all mining operations holding that right to life under Article 21 of the Constitution would include a pollution-free environment. It had also ordered a CBI probe into alleged illegal mining activities of former Karnataka Minister G. Janardhana Reddy in Obulapuram in Andhra Pradesh and former Karnataka Chief Minister B.S. Yeddyurappa. Even as the CBI probe was pending, the court directed the CEC to submit a report.
The CEC in its latest report had submitted that the 18 mines “can resume mining after getting necessary clearances.” It had said: “The ‘Category-A’ mining leases are eligible to resume mining operations only if they have all the statutory approvals and are not otherwise ineligible to operate.”
Environmental plan
The Bench, while accepting the recommendations, allowed mining by these 18 companies. It took into consideration the CEC’s report which said: “The continuation of mining operations is linked to the successful implementation of the prescriptions/provisions of the Supplementary Environmental Management Plan which is an integral part of the approved Reclamation and Rehabilitation Plan.” “The mining leases found to be involved in other illegalities and/or covered by the orders passed in other matters by this Court are not eligible to re-start the mining operation,” the report said.
To prevent such illegalities in future, the Bench recorded the submissions of CEC which said: “A system of effective checks and balances have been put in place to ensure that mining is not undertaken in unscientific and/or environmentally unsustainable manner and that the prescriptions/provisions of the lease-wise R&R plans are effectively and timely implemented. An effective monitoring mechanism has been put in place.”
Our correspondent Vishwanath Kulkarni adds:
The lifting of the ban will gradually ease iron-ore supplies to companies such as JSW Steel and Kalyani Steel, besides several sponge-iron units in Karnataka.
Of the 18 leases recommended by the CEC, only one belonging to Mineral Enterprises Ltd has all the statutory approvals to start mining immediately. This lease in Chitradurga district in Karnataka has a production capacity of 3.8 lakh tonnes annually.
“We have also received permission from the Karnataka Government today and we will resume mining operations on Tuesday morning,” said Basant Poddar, Managing Director, Mineral Enterprises.
The other 17 leases approved by the CEC are in various stages of securing the pending approvals.
“The reopening of mines will be a gradual process and the availability of iron ore will slowly keep increasing as more mines will become operational,” said R.K. Bansal, Additional Secretary General, Federation of Indian Mineral Industries.
Bansal said the reclamation and rehabilitation (R&R) plans for 15 other mines both in A and B categories have been prepared and submitted to the Indian Council of Forestry Research and Education.
“There is now a certainty that iron ore will be available going forward over the next few months,” said sources at JSW Steel Ltd, the largest steel maker in the region.
Companies, including JSW Steel, have been reeling under the impact of the iron-ore shortage for over one year and have been running their plants at lower capacities.
Shares of JSW Steel and Kalyani Steel reacted positively to the apex court ruling.