India’s coal sector is governed by opaque rules that promote discretion and graft

It also objects to the classification of mines under Category A

Questions are being raised over the recommendation of the Supreme Court-appointed Central Empowered Committee (CEC) allowing mining by 16 companies among which are those embroiled in alleged irregularities. The Samaj Parivartan Samudaya (SPS), petitioners in the illegal mining case in the Supreme Court, has taken exception to the CEC recommendations and to the classification of the mines under Category A (consisting of mines not linked to any irregularity).

Odisha is set to voice its opposition to some of the contentious provisions in the Mines and Minerals (Development & Regulation) Bill-2011 that the state government feels may undermine the federal structure of the constitution.

In May this year, Chief Minister Naveen Patnaik had shot off a letter to Prime Minister, Manmohan Singh complaining that the MMDR Bill sought to transfer certain powers and functions now being exercised by states to the Centre.

The state government has decided to wait for Supreme Court decision on Presidential reference on allocation of natural resources before granting any mining leases for coal and other minerals to user industries with whom it has signed memorandum of understanding.

The Centre had approached the apex court this April to settle the issue, whether judiciary will have a say on policy decisions such as allocation of natural resources, after the court held that all natural resources should be allotted through auction route.

The Society of Geoscientists and Allied Technologists (SGAT) has vehemently opposed Union tribal welfare minister V Kishore Chandra Deo’s demand for stoppage of bauxite mining in Eastern Ghats.

“We strongly refute observations of the Union tribal welfare minister as these are not based on facts,” said B K Mohanty, advisor, SGAT, a non-profit making professional body dedicated to promotion of mineral development.

Odisha expects to get additional revenue of Rs 1000 crore from the proposed forest development tax (FDT). The FDT is set to be levied at the rate of 15 per cent on sale value of minerals raised on forest land.

"The finalization of FDT will need an inter-departmental consultative process involving the departments of forest & environment, steel & mines and law. The FDT Act has to be amended. There is a possibility of showing minerals raised from forest land as non-forest produce as 200 out of 600 mining leases have a mix of forest and non-forest land. A mechanism has to be worked out to check this”,

In a development that may be considered a shot in the arm for environmentalists, the Additional Civil Judge (senior division) has ordered a permanent stop to iron ore mining at Kemmannugundi in the Chandradrona Hills of the Western Ghats.

Additional Civil Judge (senior division) Manjunath Nayak on Monday ordered a complete ban on mining and related activities, considering that the land is an eco-sensitive zone and located adjacent to the Bhadra Tiger Reserve.

New Delhi Between 2006 and 2009, for a number of relatively obscure firms, getting hold of a coal block was akin to stumbling on a goldmine.

The findings of an internal report conducted by the coal ministry on the allocation of resources to private players show that in order to bag a prized mine, applicants were willing to go to any extreme. Take the case of Shree Veerangana Steels, which was allocated three coal blocks in Yavatmal district in Maharashtra in 2005. This company simply does not exist any more.