Media reports indicate that the Odisha government may withdraw its earlier decision to mandate mine lessees in the state without end-use plants to sell at least 50 per cent of their output to local industries.
On December 5, 2012, the steel & mines department notified the resolution to this effect. However, the law department of the state government has not cleared the resolution as it feels the move may not pass legal scrutiny.
Following this, the steel & mines department of the state government sought views of the state advocate general.
However, reports indicate that the steel & mines department may withdraw the decision as the law department has opposed it.
The central mines ministry has written thrice to the state, seeking quashing of three contentious resolutions, including this one, arguing these do not conform to mining laws.
The decision…cannot be invoked by application of Rule 27 (1) (m) of the Mineral Concession Rules, 1960, under the pretext of right of pre-emption. The right of pre-emption can be enjoyed only by the state government and such a right cannot be transferred as in the instant case to mineral-based industries in the state, the Union mines ministry had stated on December 5 resolution.