Renewing mine lease no matter of right: Orissa

A fortnight after announcing that no new mining leases for iron ore,manganese,bauxite and chromite would be given to private firms

A fortnight after announcing that no new mining leases for iron ore,manganese,bauxite and chromite would be given to private firms,the Orissa government on Wednesday clarified that renewal of existing mining lease was no longer a matter of right.

Second and subsequent renewals cannot be claimed as a matter of right. There must be sufficient reasons to say that such renewal is in the interest of mineral development, a resolution passed by the state steel and mines department said.

The resolution added that captive mining and the principle of equitable distribution ,among others,shall be considered as the guiding factors for such renewal,except for leases held by Central or state PSUs on account of existing MoUs with them.

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On September 18,the steel and mines department had passed a resolution stating that the mining leases for the areas bearing iron ore,bauxite,manganese and chromite which have not been given to any company so far would be exclusively reserved for state-owned PSU Orissa Mining Corporation alone.

Incidentally,the order came on the day the Justice M B Shah Commission started scrutiny of the files relating to 193 mining leases in Orissa in connection to the mining scam.