Goa govt asks mining companies to vacate leases cancelled by SC in 2018

The notices were issued after Goa Foundation, an environmental NGO, filed a petition before the Bombay high court at Goa.

PANAJI: The Goa government on Wednesday issued notices to 88 mining lessees to remove their machinery and equipment from the iron ore mines that were given to them on a lease, which was cancelled by the Supreme Court in 2018. Once the state government takes control of the mines, it will have the power to restart mining there, according to the rule under which the notices have been issued.

In February 2018, the Supreme Court struck down renewals for 88 mining leases that were approved by the state government in 2015 (HT Photo)

The government has given the leaseholders one month to vacate the leasehold area.

The notices were issued after Goa Foundation, an environmental NGO, filed a petition before the Bombay high court at Goa, saying the state government was reluctant to take possession of the leases. The petition cited rules that require leaseholders to remove their equipment from the premises within a month of the expiry of the lease period.

In February 2018, the Supreme Court struck down renewals for 88 mining leases that were approved by the state government in 2015. In a verdict, the top court ruled that the renewal of leases was “unduly hasty, without taking all relevant material into consideration and ignoring available relevant material and therefore not in the interests of mineral development”.

While initially the court gave the existing leaseholders until March 15 that year to arrange their affairs and vacate the leases, the time was later extended up to January 2021 through subsequent decisions of the Supreme Court.

But the leaseholders didn’t shift out.

The decision to ask the leaseholders to vacate the leases is seen as a step to either auction the leases or restart mining through a state-run corporation.

A belated attempt by the mining company Vedanta Ltd, who approached the apex court to seek an extension of leases up to 2037 citing a technicality, was rejected by the Supreme Court last year.

The mining industry was a major revenue and employment generator for the state and at its peak, contributed close to 15% of the State’s GDP. The state used to export 54 million tonnes ore per annum before the ban came into effect in 2012 as a result of the Shah Commission report. While some mining activity continues, the industry is a pale shadow of what it once was.