By Bizodisha Bureau, Bhubaneswar, April 18, 2015 :

The Odisha government on Saturday issued orders to leaseholders of 26 closed mines asking them to execute supplementary lease deeds with the state government within three months to operate the mines raising hopes for revival of steel and sponge iron units that are battling raw material crisis,

“The state government has issued orders to the 26 mines for lease extension following the recommendations made by an inter-departmental panel and approval of the chief minister. The miners have been asked to execute their lease deeds within three months for operation of their mines,” Odisha steel and mines secretary R.K. Sharma told reporters here.

Several mine owners, including Tata Steel, KJS Ahluwalia, Mid East Integrated Steel Ltd, Kaypee Enterprises, Kalinga Mining Corporation and KN Ram Ltd are expected to benefit from the government decision.

As per the amended MMDR Act, while eight captive mines – including seven from Tata – would continue their operation till 2030, other 18 non-captive mines would continue operation till 2020.

However, the government has asked the lessees to comply with some conditions. All the miners have to furnish forest clearance and mining plan before the execution of the lease deeds, said Sharma.

Besides, they will have to comply with the Supreme Court order to be pronounced in the final disposal of the cases relating to these mines.

Further, the lessees have to act in compliance with the relevant order of the Odisha High Court in cases pertaining to the 26 mines. The court had directed the government to extend the operations of these leases before April 27.

The renewal of operations of these mines, which includes 22 iron and manganese ore mines, can add up to 32 million tons of iron ore output.

Many steel and sponge iron ore units in the state are battling raw material crisis due to closure of mines.

On April 4, an inter-departmental committee had recommended the Odisha government for reopening of 26 closed mines in the state under the provisions of the new Mines and Minerals (Development & Regulation) Amendment Act, 2015.

The recommendation for reopening of the 26 mines came after an inter-departmental meeting chaired by development commissioner Upendra Nath Behera at the state secretariat here.

State director of mine, Deepak Kumar Mohanty told ‘Bizodisha.com’, “Under the provisions of the new Mines and Minerals (Development & Regulation) Amendment Act, 2015 captive mines will get renewal for 15 years and non-captive mines will get renewal for five years. Lease holders can reopen mines after furnishing requisite documents and registration.”