Ordinance on mining a relief for cement plants

SOLAN: With the Union Government promulgating the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, various cement plants in the state have heaved a sigh of relief as they will be relieved from seeking renewal of lease after every 10 years, as was the earlier norm.

Ambika Sharma

Tribune News Service

Solan, January 22

With the Union Government promulgating the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, various cement plants in the state have heaved a sigh of relief as they will be relieved from seeking renewal of lease after every 10 years, as was the earlier norm.

Seeking renewal of mining lease had become a major headache for the cement plants. Not only were such approvals delayed for several months by the Ministry of Environment and Forests but Ambuja Cements Limited (ACL) had to discontinue its operations for some days in February last year in the absence of timely renewal.

These approvals are granted after receiving a recommendation from the state government.

Since all cases of existing lease have also been brought under the purview of this ordinance, major cement plants, including ACL, JP and ACC, will benefit from it. According to the new Act, all mining lease granted before commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, will be deemed to have been granted for a period of 50 years and after the expiry of this lease period, the lease shall be put up for auction as per the procedures specified in the Act.

The Act also had its flip side as the mining area would be put to open auction after 50 years and anyone could obtain its rights as per the new procedures.

With three cement plants being located in close proximity of each other in the Darlaghat area, the issue of bidding for each other’s mining area after completion of the 50-year term could create some contention in the future, though it has no immediate implication.

Dinesh Sharma, Vice-President, Corporate Affairs, ACL, while terming it a positive step for the cement plants, said it would save the peril of seeking renewals after every 10 years as permissions were at times delayed for months together due to change in norms and procedures, which were beyond the control of plant managements.

It was worth mentioning that renewal of mining lease of certain plants was delayed for over a year as the MoEF had directed all plants falling within a radius of 10 km of a wildlife sanctuary to seek an additional clearance from the national wildlife board.