A high-level official team on Wednesday approved reopening of seven more mines. Earlier the state government had approved 29 mines to resume operations.
All these were amongst more than 100 mines that the state government had shut down as a panic-stricken measure when the then UPA government constituted Shah Commission to probe mining scam in different states, including Odisha.
Though lease period of a number of mines had expired, they were, however, operating, pending decision at the government level over their lease extension applications, what was popularly known as deemed extension clause.
The state government renewed its interest on mines when the amended Mines and Minerals Development and Regulation (MMDR) Act came into force on March 27, allowing extension of lease period of captive mines till March 31, 2030 and non-captive mines till March 31, 2020.
“The official panel headed by development commissioner UN Behera on Wednesday examined eligibility criteria of eight mines, of which seven were recommended for reopening,” said a senior official.
The seven mines were Tata’s Sukinda chrome mine, RB Das, Tarini Prasad Mohanty, Tarini Minerals, BC Mohanty, Geetarani Mohanty, and Gandhamardhan mines, the official said.
Sources said the state government is keen to reopen more mines in the future for which processing works have begun. “Each mine that reopened signed a supplementary lease agreement with the state government and paid for stamp and other duties. So far, the government has earned Rs 700 crore from 20 mines. “We have set July 15 deadline for nine mines to sign supplementary lease deeds,” said steel and mines minister Prafulla Mallik.
Meanwhile, official sources said the government has earned nearly Rs 1,012 crore royalty from mines in the first quarter (April-June) of the current fiscal, which is just about Rs 10 crore more than the collection during the corresponding period of last year.