Supreme Court Asks Centre To Consider Whether Cap On Iron Ore Mining Needs To Be Imposed In Odisha

The Supreme Court on Monday(August 14) directed the Centre to consider whether a cap on iron ore mining needs to be imposed in the state of Odisha as was done for Karnataka and Goa while hearing a Public Interest Litigation (PIL) on illegal mining in the state.

Adv. Prashant Bhushan appearing for Common Cause which filed the petition, informed a bench of Chief Justice D Y Chandrachud, Justice J B Pardiwala and Justice Manoj Misra that at the current rate of mining, the reserves are likely to be used up in twenty years.

According to the figures presented by Bhushan in Court, yearly mining permissions in the state cover 58 leases with permissible excavation of 227.13 million tonnes. He submitted that since the total reserves are 4748.52 million tonnes, at the current rate, the reserves are likely to finish in twenty years.

Sr. Adv. Rakesh Dwivedi appearing for the State of Odisha, however, refuted this by submitting that the estimate of iron ore reserves at present is estimated to be 9220 million tonnes and there is a likelihood of it increasing in future.

Adv. A D N Rao the Amicus Curiae in the matter, suggested that the Central Empowered Committee (CEC) maybe given the task of submitting recommendations on the capping of mining. However, the Court said this will be considered after the Union submits its response as directed.

Additional Solicitor General Aishwarya Bhati appeared for the Union.

“The Union of India shall consider the position and decide whether a cap on mining is necessitated in the case of State of Odisha and, if so, the modalities to be followed for determining such a cap. In arriving at its decision, the Union of India shall also examine the basis on which a cap was imposed in the States of Karnataka and Goa. The Union of India shall file its affidavit on this aspect within a period of eight weeks“ the Court stated in its order.

The State of Odisha also informed the Court that on account of illegal mining an amount of Rs 2,622 crores is outstanding, out of which an amount of Rs 2,215 crores is to be recovered from five lessees. The leases of defaulters have either expired or have been terminated and they are not operating any lease or allowed to participate in tenders, the Court was informed by the Counsel for the state.

The Court accordingly issued directions for recovery of the amount from defaulters:

“ (i) The State Government shall take expeditious steps to pursue the recovery proceedings in accordance with law and shall take necessary steps by attaching the assets of the defaulting entities; and

(ii) Hereafter, the terms and conditions of tender shall expressly clarify that no tender shall be entertained at the behest of an entity against which outstandings are due or companies in which the same promoters are interested.”

The matter has been posted for further consideration on 20th October 2023.

Case Title: Common Cause V. Union of India

Click here to read/download order