By Sandeep Pattnaik & Brahmi Priya Samantray
\r\n
Bhubaneswar: Odisha Cabinet on Monday took a historic decision to introduce e-auction for allocating Prospective License (PL) and Mining Lease (ML) for minerals to the highest bidder under both captive and non-captive users category. Interestingly, the auction process will be applicable for all minerals excluding coal, as decided by the cabinet.
\r\n
Odisha has become the maiden state to take this decision in a bid to bring in transparency in the mining sector and to end monopoly by large industries through equitable distribution of the mineral resources to the user industries.
\r\n
“The decision is historic. This will bring an end to the monopoly system in the mining sector. The State will gain in revenue generation to enable the Government to implement various welfare schemes for the poor, including the ‘Biju Pucca Ghar Yojna’ for providing shelter to them,” Chief Minister Naveen Patnaik revealed to media post the cabinet meeting.
\r\n
“It will facilitate the ongoing process of industrialisation through availability of raw materials and generate more jobs for the youth,” Naveen said.
\r\n
“Separate public auction for captive and non-captive use of mines shall be held that will earn the state exchequer around Rs 10,000 crore per year,” Parliamentary Affairs Minister Bikram Keshari Arukh said to mediapersons.
\r\n
However, the decision of public auction would not be implemented in case of those leases which the state government has already recommended for PL/ML to the centre as per the MoU signed with the company. “These include Posco India for which the state government has recommended PL for Khandadhar ore mines,” added Chief Secretary Gokul Chandra Pati while briefing to press post the cabinet meeting.
\r\n
All the existing leases of the Odisha Mining Corporation [OMC] and all other State and Central PSUs will be excluded from the purview of the said decision. Besides, those mining leases awaiting the approval of the first renewal and leases that have already been granted express orders for renewal under section 8(3) of the MMDR Act (provided they execute the lease deed after fulfilling the statutory requirements within the specified time period), will not be subject to public auction, Sri Pati said.
\r\n
Besides, the cabinet decided to do public auction for all other leases of major minerals (excluding coal) awaiting second or subsequent renewals.
\r\n
“The above decision of the cabinet is in conformity to pronouncements of the Supreme Court and will help in maximising the revenues besides bringing transparency in the allocation or assignment of mineral resources,” Pati added.
