The Supreme Court today cancelled 49 leases in mines reporting maximum illegalities in Bellary, Tumkur and Chitradurga districts of Karnataka, but allowed resumption of activity in mines with lesser illegalities as recommended by a Central Empowered Committee (CEC).
CEC had categorised the mines in the area in three categories — A, B and C. The mines in which there was least or no irregularities were categorised as ‘A’ and those with maximum illegalities were placed in category ‘C’.
The apex court, while accepting the majority of the recommendations made by the CEC since July 2011 on mining issues in Karnataka, also said illegal iron ore mining on the Andhra-Karnataka border would remain suspended till the demarcation of boundary between the two States is completed.
A bench of Justices Aftab Alam, K. S. Radhakrishnan and Ranjan Gogoi passed the order on a plea by NGO Samaja Parivartana Samudaya, which had alleged large-scale irregularities and illegalities were being committed by various private mining firms holding licences to mine in Bellary, Tumkur and Chitradurga districts as well as the State-owned Mysore Mining Ltd (MML).
The illegalities referred to included illegal mining activities, allotment of huge quantities of iron ore at throw-away prices to private companies and an increase in the rates at which iron ore was supplied to some other companies.
Earlier on September 3, 2012 the apex court had partially lifted its ban on mining operations in Karnataka, ordered more than a year ago, and gave a green signal for extraction of iron ores on 18 leases in category A mines, subject to certain conditions being fulfilled.
The bench had accepted the report of the CEC which had said 18 leases be allowed to carry on their business in the districts of Bellary, Tumkur and Chitradurga as they have not violated any rules.
Welcome relief, says JSW Steel
Our Kolkata Bureau adds: The Supreme Court of India on Thursday effectively paved the way for opening up of all the category A and B iron ore mines in Karnataka. Seshagiri Rao, Jt MD and Group CFO of JSW Steel, the largest steel maker operating in Karnataka and affected by the blanket ban imposed by the apex court earlier, said in a statement this was a welcome relief.
"This relief not only provides a breather to the steel industry in the region, but also provides direct and indirect employment and livelihood to several people employed in this sector at a time when the steel industry was at the brink of closure due to non-availability of iron ore."
He further said as the Indian economy is likely to enter a higher growth mode in the near future, the opening up of mining would enable raw material linkages for further investments in the steel sector in the Karnataka region.
"These are our initial responses as we are yet to receive the order copy," he added.