Cuttack, Jan 30: The National Mineral Development Corporation will extract iron ores and other minerals from the underproduction mines, those are deficient in fulfilling the target during the stipulated timeline.
The Orissa High Court while hearing a PIL regarding deficient mineral productions with respect to the targets provided to them, ordered the landmark ruling on Thursday.
Observing a tremendous loss of revenue & royalty and environmental impacts, a bench of the Orissa High directed the Odisha government to extract requisite quantity of minerals from the mines that have not yet achieved their targets, as per the mining norms & lease conditions. In the ruling the bench has asked the state government to continue minerals production from the defaulter mines with the help of the NMDC
As per the directive, the state government will extract minerals from such mines through the public sector undertaking NMDC (National Mineral Development Corporation). The entire cost incurred for extraction of minerals will be recovered from the non-performing leaseholders.
The Orissa High Court bench observed that the state government is empowered to take action against the miners who breach the norms, under the General Concession Rules, 2016.
Invoking Rule 12(1)(EE) of the General Concession Rules, 2016, the court directed that the state government may ensure the extraction of the required quantity of minerals from the leased mines through NMDC.
Odisha holds nearly 28 percent of the country’s iron ore reserves. At present, leases have been granted to 63 legally operating iron ore mines in the state. As per environmental clearances, these mines together are permitted to produce around 246 million tonnes per annum (MTPA) of iron ore.
However, during the 2024–25 financial year, only 159 MTPA out of the prescribed 246 MTPA of minerals were produced from at least 63 mines, leased out so far.This accounts for merely about 64 percent of the approved production capacity.
With the PIL stemmed from loss of massive royalty, the petitioner a social outfit namely, Citizens Action Forum, had prayed the Orissa High Court to issue an order to the state government so as to expedite massive minerals production from the mines.
