The Orissa High Court?s judgement on Posco-India?s Khandadhar iron ore mines has put the state government?s policy to provide prospective investors with mineral wealth in jeopardy. The judgement is likely to deter the state government from deciding on allotment of mines invoking section 11(5) of the Mines and Minerals (Regulation & Development) Act 1957.
The state government has lined up 49 steel projects in the state with promises that they would be provided captive iron ore mines. Even though there are hoards of applications for each of the iron ore mines in the state, the government was confident that it would be able to prioritise the application of the project promoters taking advantage of provision 11(5) of the MMRD Act.
The Orissa government is consulting with senior counsellors of the Supreme Court to decide its next course of action. Sources in the government told FE two eminent lawyers of the apex court have been consulted on the issue. The government is soon going to take a decision on whether it will contest the high court order in the Supreme Court, sources said.
The state government had recommended the prospecting licence of Khandadhar mines in favour of Posco-India on the ground that it would add maximum value to the iron ore in the state. The Orissa High Court, however, has directed the state government to reconsider its decision and hear all the 226 applications once again, pointing out that the ?relative merit is insufficient? while deciding the case in favour of Posco-India.
The Jagatsinghpur district administration, meanwhile, is preparing to launch the land acquisition drive for the Posco site. After the announcement of the Rehabilitation & Resettlement Package for the affected villagers, the district administration is planning to move to the site from July 28, to make arrangements for eviction of villagers.