The Hindu : Karnataka / Bangalore News : Mining lease: court calls for records from Centre

Online edition of India's National Newspaper
Friday, Aug 25, 2006

Karnataka

Karnataka - Bangalore

Mining lease: court calls for records from Centre

Staff Reporter

The order was passed on a petition by MSPL of Hospet

BANGALORE: The Karnataka High Court has directed the Central Government to place before it records relating to the approval of the State Government for grant of mining leases to two private firms in Eddinpada coming under the Kumaraswamy range in Bellary district.

Justice D.V. Shylendra Kumar passed the order on a petition by MSPL of Hospet which had challenged the grant of mining lease on lands it had sought to two other companies — Jindal Vijayanagar Steel and Kalyani Steels.

The petitioner said it had on May 24, 2001 applied to the Department of Mines and Geology seeking grant of mining lease over 298.4 hectares in Eddinpapa. This land was held on lease for mining by Sandur Manganese and Iron Ore Ltd. The State, in turn, requested the Centre to relax the condition on mining by two companies in the same area and grant it to MSPL.

MSPL said it had placed on October 12, 2004 a proposal for taking up projects in the State before the then Chief Minister of Karnataka who also held the portfolio of Minister of Mines and Geology.

It said it had told the Chief Minister that it would be exclusively investing in Karnataka as it preferred this State to others.

It said it would make an immediate investment of Rs. 1,000 crore on a one million tonne speciality steel plant and had plans for further investment of over Rs. 10,000 crore for a five million tonne integrated steel plant. This would be besides its investment of Rs. 100 crore in mining. It said all these investments would be made if its application for mining lease was considered favourably.

Though it placed its proposals for the grant of lease, MSPL said Jindal and Kalyani Steels were granted mining leases over the lands which it had sought for lease. It urged the court to direct the State and its authorities to grant it lease.

Mr. Justice Shylendra Kumar ordered issue of notices to the State and other respondents. He took on record the submission of the government advocate that some documents produced as annexure to the writ petition might not reflect the true position as available in the records.

The judge said, "there does appear to be considerable confusion as to whether any of the copies of documents placed before the court by the petitioner are part of the original files."

He adjourned further hearing on the petition till September 5.

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