BHUBANESWAR: Union Mines Secretary Balvinder Kumar today urged the state government to execute lease deed of mines for which approvals were granted before January 12, 2015 when the Mines and Minerals (Development and Regulation) Amendment Act of 2015 came into operation.
Applications for grant of mining lease of about 60 iron ore mines will lapse suo-motu if the state government failed to execute lease deed in favour of the project proponents before January 11, 2017.
"We discussed about the progress of lease deed execution for mines where letter of intent has been issued by the state government for grant of mining lease," Kumar told reporters after a meeting with Chief Secretary A P Padhi.
Execution of mining lease deeds under the new law has a deadline of January 11, 2017. Operation of these mines are necessary in view of the increasing demands of raw materials from the metal
industries. Besides, the government has targeted to increase the mineral output by reviving operations of several mines as per the plan prepared by the ministry.
"It (delay in execution of lease deed) is a matter of concern for the Centre also," he added.
Sources familiar with the development said that the state government could at best execute lease deed for ten mines as a number of applications are pending at various departments for necessary clearances. Three mines have received all statutory clearances while another 6 or 7 mines are expected to get all clearances in December.
The applications pending for disposal include both for merchant mines and captive mines.
As per the Mine and Minerals (Development and Regulation) Amendment Act, 2015, mining lease will be granted subject to fulfilment of the conditions of the previous approval or of the letter of intent within a period of two years from the date of commencement of the new law.
In majority cases, the the mining lease application are pending for forest and environment clearances.