All mining leases in Goa cancelled, fresh ones via auction
The SC has quashed all 88 leases for iron ore mining in Goa, which it said were issued by the state government in violation of laws. Companies have to stop operations by March 15, it ruled. Fresh licenses will be granted via auction. Goa is one of India's hotbeds for mining, known for its low-quality iron ore that's mostly exported to China.
Mining in Goa had been banned in 2012
Till October'12, Goa was exporting 50mn tonnes of iron ore a year. But then the SC banned mining in the state for over two years following reports that most such activity was illegal. Later, some companies approached the Bombay HC seeking directions for the state government to renew their leases. In August'14, the court ordered in favor of companies which had paid stamp duty.
Government renewed leases in violation of laws, petition argued
In early 2015, the BJP government renewed leases for 88 firms, all of which were accused of illegal mining. This happened before the mines-and-minerals amendment was cleared by Parliament in March'15. Till then, there was no concept of renewal. In 2015, the Goa Foundation filed a PIL alleging the government and companies had colluded to circumvent the ordinance as well as the SC's directions.
Post-renewal earnings to now be recovered from companies
The SC has now ordered all of them to wrap up operations by March 15. New leases would be granted through bidding. It has also directed the setting up of a special investigation (SIT) team to probe the matter. The SIT would comprise chartered accountants to calculate the amount the companies made after the lease renewal. That money would be recovered from them.
How will the SC order affect the current status?
The SC order covers almost all firms engaged in mining in Goa like Vedanta Resources, who were operating on their second renewed licenses. This will unquestionably hit exports, since Indian steel companies don't have the technology to use Goa's iron ore. However, activists have long complained about the environmental harm caused by such activities and have been seeking a ban on mining in Goa.
