The Goa government has initiated the process of clearing 13 iron ore mining leases, thereby resuming mining operations which were grounded for in the last two years in Goa.
Chief Minister Manohar Parrikar on Friday confirmed that the government is acting according to its recent policy for renewal of iron ore leases by exercising powers under Section 8(3) of the Mines and Mineral Regulation and Development (MMRD) Act, 1957.
Sources in the State Finance Ministry indicated on Friday that as the revenue of the State is unable to keep pace with the on-going developmental works undertaken by the government, immediate resumption of iron ore mining, considered one of the major economic activities of the State, has become imperative. The mining ban meant State exchequer lost around 10 per cent of its annual revenue and the State around 20 per cent of GDP, sources reiterated.
While partially lifting its October 2012 ban order on Goa's mining operations in April this year, the Supreme Court had put an annual extraction cap and asked the Goa government to form a policy before allotting the leases afresh. However, the extraction of ore and exports remain halted.
The Goa Foundation, a non-governmental organisation, which has challenged before the Supreme Court a recent High Court order asking the State government to renew 28 leases based on stamp duty paid by the miners, is determined to oppose the Goa government’s decision to renew any of these mining leases before action for previous “illegalities” was taken.
Its contention is that though 18 of the 28 parties have paid stamp duty, “almost all are guilty of violation under sections 37 and 38 of the Mineral Concession Rules(MCR) Rules. They are also subject to
serious inquiries for violation of a large number of other environmental and MMDR laws.”
According to State Mining policy, the government intends to renew immediately leases with no or minimal violations.
According to Claud Alvares, Director, Goa Foundation, in view of the violations reported, especially in the third report of the Justice M.B. Shah Commission of Inquiry, it is imperative that the government return the money paid as stamp duty to the parties concerned. He also recalled that the Supreme Court in its mining judgment (435/2012) had directed the Goa government to examine violations under sections 37 and 38 of the MCR Rules and take action thereon.
Mr. Parrikar told The Hindu that renewal of leases will not insulate any of illegal operators of the past from facing due process of law and action.