Follow norms in leases, Mines Director told

State Government has directed him to furnish a list of all leases awaiting second and subsequent renewal with all requisite details in a week.

Published: 14th October 2012 09:33 AM  |   Last Updated: 14th October 2012 09:33 AM   |  A+A-

Asking the Director of Mines to take immediate steps to implement the policy decision on renewal of mining lease, the State Government has directed him to furnish a list of all leases awaiting second and subsequent renewal with all requisite details in a week.

The State Government has also laid down a policy for the renewal of mines leased out for captive use only. In a letter to the Director of Mines on October 12, Principal Secretary in the Steel and Mines Department Rajesh Verma has said, “In case of first renewal of mining lease granted for captive purpose, no mineral should be put to non-captive use as it would amount to violation of the lease condition.”

“Any instance of violation of such a lease condition may be brought to the notice of the government forthwith,” Verma said in the letter and added that excess land occupied by such lessee can also be taken over by the State Government after assessing the captive requirement, if any lease is found to be in excess of such requirement.

Verma has asked the Director of Mines to do this exercise and report the details of such cases, if any, to the State Government after proper verification within a week.

The Secretary said the State Government while authorising second and  subsequent renewal of mining lease under Sub-section (3) of Section 8 of the Mines and Minerals (Development and Regulation) Act, 1957, has to satisfy itself that such renewal would be in the interest of mineral development.

The reasons for which the State considers that such renewal would be in the interest of mineral development are also to be recorded while authorising the renewal, he said.

The State Government had laid down rules for ‘mineral development’ for the purpose of Section 8(3) of the Mines and Minerals (Development and Regulation) Act, 1957, for minerals like iron ore, manganese, chromite and bauxite except in case of leases held by a company or corporation-owned or controlled by the Centre or the State Government.

Leases awaiting second and subsequent renewal but operating under rule 24A (6) of Mineral Concession Rules, 1960, are also covered by the policy decision. Each of such cases is to be reviewed and decided in a time bound manner, Verma said.

It has also been stipulated in a State Government resolution that in such cases, the raising may be limited to the captive consumption till a decision is taken for renewal of part or whole of the lease area depending upon the reserve assessed.

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