By Bijay Mishra
BHUBANESWAR:To ensure the optimum utilization of the mines and to eradicate any burden on the government exchequer ,the Odisha High Court directed the State Government to invoke Rule 12 (1) (ee) of the Concession Rules, 2016 to carry out or perform the statutory obligations to ensure the optimum utilization of the mines through the Central Govt Agency National Mineral Development Corporation .
Disposing the W.P.(C) No. 31036 of 2025 of Mr Chita Ranjan Sahu , Secretary , “ Citizen Action Forum” , Honourable Chief Justice Mr Harish Tandon and Justice M.S. Raman , mentioned that “there is a patent underutilization of the mines by the mining lease holders, but in none of the cases, we find that the State has taken recourse to the provision contained under Rule 12 (1) (ee) of the Concession Rules, 2016.”
Learned Advocate for Petitioner Mr. Matrugupta Mishra, in the PIL showed a serious concern on the underutilisation of the mineral resources across the State of Odisha and inaction on the part of the State machineries in enforcing the statutory obligations envisaged under the MMDR Act , 1957 . Rule 12 (1) (ee) of the Concession Rules, 2016 encompasses not only several obligations, rights and the privileges of the mining lessee but subject to the conditions that in the event the mining lessee failed to carry out or perform any of its obligations thereunder or under the lease deed within the specified time, it is obligatory on the part of the State Government to perform or carry out the mining activities and the expenses incurred in this regard shall be borne by the lessee.
During the case , the HC had directed the Govt to make an enquiry to ascertain the mining lease holders, who are violating the terms and conditions provided in the statute as well as in the deed in not extracting the ores as mandated therein in the form of an affidavit. Subsequently , the State filed an affidavit disclosing the outcome of an enquiry having conducted in the interregnum wherefrom it appears that almost majority of the mining lease holders have not secured the optimum extraction of the iron ore where in some of the cases, the demand in the form of penalty was raised, yet such demand is kept in abeyance under the aegis of an interim order passed by this Court.
The HC observed that there is a patent underutilization of the mines by the mining lease holders, but in none of the cases, the Court find that the State has taken recourse to the provision contained under Rule 12 (1) (ee) of the Concession Rules, 2016.
The PIL highlighted some of the mining blocks to corroborate the factum of underutilization not only in one year but continuously for several years resulting in deprivation of a statutory imposition under the statute but also affects the livelihood of large number ofpeople. The petitioner underscores the average minimum utilisation of the ores and the huge loss suffered by the State, which would roughly amount to rupees four thousand crores.
As admitted in the affidavit by the State , many lessees have failed to meet the minimum exploration of the minerals/ores , the HC directed that , the State must take responsibility to take shelter under Rule 12 (1) (ee) of the Concession Rules, 2016.
Describing the huge loss of the State Exchequer by some Mines owners a massive “loot “ Mr B Mishra , Chief Advisor “ JANMAN” , Mr Rajesh Tripathy – President “ Jana Chetana “ , Mr Bijay Parida – President “Jana Adhikar Parishad “ , Advocate Mr Rabindra Prasad Pattanaik , President and Mr Chinmaya Jena “- Advisor – “Citizen Action Forum demanded immediate implementation of the HC order for the larger interest of the State .
