The Revision Authority, set up under the Union mines ministry, has stayed the enforcement of a resolution of the state government that had barred merchant miners to produce minerals during their lease renewal period.
The authority, while hearing over the plea filed by merchant miners on Wednesday, said, it will soon issue the written stay order.
“During the hearing, the authority was convinced that the restrictions imposed by the state government is unnecessary and said, will issue a stay order,” official of an aggrieved company said on condition of anonymity.
The state government, in October last year, had come up with a resolution saying that henceforth, miners who are waiting for the lease renewal but are operating under deemed extension provision of the Mineral Concession Rule, 1960 must not produce mineral beyond their captive use.
The resolution was a blow to miners who did not have any value addition industries as they had to halt production till the end of their lease renewal process, which some time goes beyond a decade because of bureaucratic procrastination.
The order is likely to benefit Aditya Birla group controlled Essel Mining, which had to halt operation at its key mines following the issue of resolution. The company produces about a million tonne iron ore every month.
