BHUBANESWAR: With at least 20 non-coal mining blocks in the state, auctioned between 2016-17 and 2022-23, continuing to be non-operational due to delays in statutory clearances and administrative apathy, the Prime Minister’s Office (PMO) has stepped in to speed up their progress.
Of the 44 non-coal mining blocks auctioned during the seven-year period, nearly half have failed to commence production despite regular reviews at the state-level and the PRAGATI cell of the PMO.
That Odisha is facing huge revenue loss due to the delay notwithstanding, sources said, the issue has now drawn the attention of the highest level with principal secretary to the prime minister reviewing the status. “The principal secretary has already reviewed the progress and will directly monitor it,” the sources said.
Prominent firms, including Rungta Mines Ltd, Tata Steel Ltd, Vedanta Ltd, JSW Steel Ltd, Triveni Earthmovers Ltd, Dalmia Cement (Bharat) Ltd, Kashvi Power & Steel (P) Ltd, Kalinga Alumina Ltd and Ambuja Cement Ltd are among those yet to commence operations on their allotted blocks.
According to an internal review, Rungta Mines Ltd has several iron ore blocks like Pureibahal, Chandiposhi, Jhumka-Pathiriposhi, Kendudihi North, and Kedesala North-East that are pending operationalisation. While procedural steps have been initiated, the company cited delays in forest clearance (FC) and difficulty in accessing remote, forested sites as key hurdles.
Tata Steel’s Kalmang West iron ore mining block in Sundargarh district and Gandhalpada block in Keonjhar district are also held up. The company has secured stage-I FC for Kalmang West but awaits environment clearance (EC) since June 2022. In Gandhalpada, proposals for compensatory afforestation and forest clearance are under process.
The compliance by Vedanta Ltd is underway for the Sijimali bauxite mining block for which the Ministry of Environment, Forest and Climate Change (MoEF&CC) had sought essential details to grant FC. While the company is facing the issue of approach road to the mining block, forest diversion for less than five hectare is also in the process.
Although the stage-I FC and terms of reference for EC have been obtained for Netrabandha Pahar iron ore block, initially leased in favour of Bhushan Power and Steel Ltd, which has subsequently been taken over by the JSW Steel Ltd, the stage-II FC is still awaited.
The extension of its lease period is also under consideration.
In some cases, the situation is more alarming. The preferred bidder for the Jagadalpur graphite block failed to apply for any clearances after securing the letter of intent (LoI), prompting the state to consider revoking it. Similar action is being initiated in the case of the Behera-Bhanjapalli limestone block.
Several other blocks, including the Lasarda-Pacheri manganese block (Triveni Earthmovers), Kottameta limestone block (Dalmia Cement), Kuturumali bauxite block (Kalinga Alumina), and Uskalvagu limestone block (Ambuja Cement) are also facing delays at different stages of statutory approval.
Additional chief secretary (ACS) of Steel and Mines department Surendra Kumar said the government has constituted a state-level project monitoring and coordination committee for monitoring coal and non-coal projects and reviewing the status of operationalisation of the auctioned mining blocks.
“As per MMDR ACT, lessees have a certain timeline within which they have to get necessary clearances and approvals like completing land acquisition, obtaining necessary clearances like FC, EC, consent to operate and consent to establish, etc. Generally, the timeline is granted for three years and is extendable provided the delay is not ascribable to the lessee. However, obtaining clearances and approvals is the primary responsibility of the lessee. The state government facilitates public hearings wherever required,” he told TNIE.
Kumar said the bottlenecks have been identified and the officials are coordinating with the Forest department to expedite and follow up the requisite clearances, intervene at field level to fast-track clearances/compliances. The chief secretary is also reviewing with departments concerned, he added.