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Goa mining companies’ deadline to vacate mining leases ends, auctions next
The Goa government earlier sent individual notices to each of the leaseholders occupying the 88 mining leases covered by the 2018 judgement of the Supreme Court
PANAJI: The Goa government on Monday barred Goa’s mining leaseholders from carrying “any mining-related activity” in the 88 mining leases whose renewals were cancelled by the Supreme Court after a month granted to them to vacate the leases expired on Monday.
“Tomorrow onwards, the mining leaseholders will not be able to remove any mining-related machinery or equipment or carry out any mining-related activity,” Goa’s mines director Vivek HP said.
Earlier this month, the Goa government issued notices to leaseholders who hold possession of the 88 mining leases whose renewals were cancelled by the Supreme Court way back in 2018 to vacate the area by June 6.
Individual notices were sent to each of the leaseholders occupying the 88 mining leases that were covered by the judgement of the Supreme Court asking them to comply with the provisions of Rule 12(1)(hh) of the Minerals (other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016 a“within a period of one calendar month w.e.f. from 6th May to 6th June 2022 failing which further action will be initiated as deemed appropriate in terms of the MMDR Act and the Rules made thereunder.
According to the rule, “if at the end of six calendar months after the expiry or sooner termination of the lease term… any ore or mineral, engines, machinery, plant, buildings structures, tramways, railways and other work, erections and conveniences or other property… if not removed by the lessee within one calendar month of being notified to do so by the state government, [will] be deemed to become the property of the state government and may be sold or disposed of in such manner as the state government shall deem fit without liability to pay any compensation or to account to the lessee.”
The leaseholders will, however, continue to ‘maintain’ the leases from a disaster management point of view in view of the upcoming monsoon season to ensure that no mines collapse.
The government said it is taking things forward with regard to the auctioning of the leases.
“Today is the first day since they can no longer operate the leases. We are taking things step by step. Once we receive the report from the Goa Mineral Development Corporation, based on that we will go ahead with the auctions,” Vivek added.
In February 2018, the Supreme Court struck down the lease renewals for 88 mining leases that were cleared by the state government in 2015.
“The second renewal of the mining leases granted by the state of Goa was unduly hasty, without taking all relevant material into consideration and ignoring available relevant material and therefore not in the interests of mineral development. The decision was taken only to augment the revenues of the state… The second renewal of the mining leases granted by the state of Goa is liable to be set aside and is quashed,” the Supreme Court bench of justices Madan Lokur and Deepak Gupta said in its 2018 verdict.
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.
A belated attempt by the mining company Vedanta Ltd, which approached the top court seeking an extension of leases up to 2037 citing a technicality, was rejected by the Supreme Court.
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 per annum before a 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 prior to the ban.
