BHUBANESWAR: The Orissa Government has decided to cancel mining leases pertaining to non-working mines.

As a result, companies that have not developed the mines within two years of obtaining the lease will lose their rights. At present there are a total 118 non-working mines in the State and many of them have not been developed for several years, according to official sources.

The decision to cancel the leases was taken at a review meeting chaired by the State Steel and Mines Minister, Padmanabha Behera, here on Monday. Top officials of the Steel and Mines Department and officials of the Orissa Mining Corporation attended the meeting. The State Government is planning to decide on the applications received from different companies, seeking mining lease for their proposed industries by September end. Decisions will also be taken on the question of renewal of the leases granted to various companies in respect different mines.

The applications for mining lease filed by a host of companies, including the South Korean steel major, POSCO, have been pending with the State Government for the past several months. The State Government has already signed 43 memoranda of understanding for setting up of steel mills, apart from several agreements for establishment of alumina refineries and thermal power plants that require bauxite and coal.

Interestingly, several companies, which had not developed their iron ore mines for several years after obtaining the lease right, have signed MoUs with the State Government to set up steel mills.

The Government was also contemplating to set up a specialised chemical laboratory to determine grades of different minerals, Mr. Behera told the meeting.

Besides, the meeting decided to activate the task forces formed at the State and district levels to stop smuggling of minerals from the mineral-rich areas. The State-level task force will meet once in three months and the district level task forces once a month. The mining divisions such as Talcher, Joda, Koida, Baripada, Ganjam, Bolangir and Koraput were given one new vehicle each to ensure efficient functioning of the task forces.

The State government earned revenue of Rs. 790 crore through royalty from different minerals in 2005-06 and a target of Rs. 950 crore has been set for the current fiscal.

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