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The Central Empowered Committee (CEC) of the Supreme Court (SC) has recommended a time-bound completion of the re-allotment of 51 cancelled mines in Category C. The Karnataka government should file a detailed scheme in this regard for the approval of court, the CEC said in its report to the SC.
“Karnataka should take pro-active steps to ensure the court’s directions regarding the allotment of the cancelled Category-C mining leases to the end-users through a transparent process of bidding is complied in two to three months.”
The state government, through a notification on September 12 had cancelled 51 mining leases in Category C following the directions of the SC in April. However, the government is yet to prepare a detailed scheme to re-allot these.
“While preparing the scheme, the filings by the CEC, with a view to speed the process of allotment and resumption of mining operations in such areas, may be considered by Karnataka,” the CEC said.
In the first instance, about 15 leases, based on their earlier annual production and the reserves as given in their approved mining plans, may be identified for allotment. The area may, after obtaining permission/concurrence of the competent authorities, be notified for seeking applications for allotment, it said.
Thereafter, applications may be invited from the end-users for allotment of mining leases for a specified period as found appropriate by the state government (say for 30 years with an option for renewal for another 20).
The CEC said, while seeking applications, the state government might specify that, subject to a minimum amount payable every year and the floor price fixed by it, the applicant(s), who offer the maximum amount per tonne of ore (of different grades) produced every year for transfer to the SPV (special purpose vehicle) for taking of ameliorative and mitigative measures in line with the Comprehensive Environment Plans for the Mining Impact Zone (CEPMIZ), will be allotted the leases.
The CEC has also stipulated the ore produced be used for captive use only. A consortium of two or more end-users may be formed for making applications. The allottees will be required to get the exploration of the mineral in the lease done in accordance with the United Nations Framework Classification (UNFC) guidelines adopted by the Indian Bureau of Mines (IBM) to ascertain the extent of the mineral reserves available to facilitate preparation of the rehabilitation and resettlement (R&R) and mining plans.
The mining operations will be allowed to be resumed after (a) exploration (b) preparation and approval of the R&R plans and its satisfactory implementation and (c) preparation and approval of the mining plans.
The floor price, that is, the minimum acceptable amount a tonne of ore (of different grades) produced may be fixed by the state government after considering the sale price of different grades realised by the monitoring committee. In addition, interest-free security deposit (say equal to three/five times the minimum annual amount payable) may be prescribed.
The existing statutory approvals may be transferred in favour of new allottees after obtaining the permission of the SC.
