Three resolutions of the Odisha government to impose unprecedented curbs on mining activity and triggering a legal tussle between the government and the mine lessees have come across a central government wall.
The ministry of mines has asked it to scrap all the three resolutions, saying they breach mining laws. Through these resolutions, the state steel and mines department sought to achieve a three-pronged objective. One, reserving all the remaining mineral-bearing areas (not leased to any private entity) in favour of its company, the Odisha Mining Corporation (OMC). Two, making it mandatory for standalone iron ore miners to sell at least half their output to state-based industries. Three, restricting the area of a private lease at the time of renewal.