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On 6th February, 88 mining leases in Goa were cancelled by the Supreme Court. These mining leases were among the ones renewed by BJP in 2015. The Supreme Court has asked the owners of the leases to stop operations by March 15th. They have also been asked to reapply for new leases following the date.
The Supreme Court ruling regarding mining in Goa
This has come as a heavy blow to miners around the sate, specifically the private leaseholders. The bench that ordered the leases be cancelled was headed by Madan B. Lokur. It was found that the process through which the leases were renewed in 2015 was ‘in violation’ of the law. The court has directed the government to grant fresh licenses through an auction. This has adversely affected the share prices of the private leaseholders.
The government was supposed to have auctioned the leases in 2015 rather than renew them. The process was also found to be ‘hastily’ carried out. The state’s procedure didn’t comply with the court’s optimum utilisation of resources standpoint. The renewal of the leases was carried out just before the amendment to the Mines and Minerals Act in 2015. The activity was a joint effort of the state and the miners to ‘circumvent’ the law and the supreme court ruling. This is not the first time the state has been called up to defend itself when it comes to improper mining activities. In 2014 it was found that mining of the manganese ore continued despite licenses having expired in 2007.
The implications
The mining community has held the minister Manohar Parrikar responsible for this emphasised Congress. The opposition has thus asked for his resignation. This is a big blow to the BJP-led government in Goa. Some of the private mine owners have been found to owe the government more than 1,500 crores worth of rupees. The state government is also being held responsible for not trying to recover this money. The SIT has also been called in to investigate for other illegalities in the state. This will have a huge impact on the mining economy of Goa.