Govt declares mining applications for 277 areas in State ‘ineligible’

* As many as 6,413 applications across the State, including 3,641 in Vidarbha region alone are now ‘ineligible’

By Kartik Lokhande
In a major development, Directorate of Geology and Mining (DGM) has declared mining applications for 277 notified areas across Maharashtra as ‘ineligible’. While issuing a notification to this effect, the Directorate has stated that provisions under Mines and Minerals (Development and Regulation) Amendment (MMDR) Act, 2015, prompted this action.
These include a total of 6,413 applications for various notified areas across the State. More than half of this number -- 3,641 -- are for 131 areas in Vidarbha region alone. The notification issued by DGM, Government of Maharashtra, states that it had invited applications for mineral concession vide its various previously published notifications under Sections 11 (2) and 11 (4) of MMDR Act of 1957. However, it adds, the Central Government has promulgated MMDR Act, 2015, wherein Section 10 A (1) states that all applications received prior to the date of commencement of MMDR Act, 2015, shall become ‘ineligible’.
If one goes through the list of applications rendered ‘ineligible’, it comes to fore that the highest applications were received in Nagpur district for 33 notified areas. As many as 1,291 of these applications were received in Nagpur district alone, and most of these also pertained to prospecting licence for Manganese Ore. Nagpur was followed by Bhandara district with 816 applications, mostly for Manganese Ore, Quartz, State Stone, Kyanite, Chromite etc. As many as 483 applications for mining lease and prospecting licences for Iron Ore and Quartz. However, the highest area involved -- 38,640.53 hectares -- in 351 applications for 32 notified areas was in Chandrapur district.
Section 11 of MMDR Act, 1957, pertained to procedure for obtaining prospecting licences or mining leases in respect of land in which the minerals vest in the government. Section 11 and its sub-sections outlined ‘preferential rights of certain persons’. Section 11 (2) and Section 11 (4) stated that an applicant who had applied for reconnaissance permit, prospecting licence, or mining lease first for a particular area should have ‘preferential right to be considered for grant’ of such perrmit or licence or lease. This provision also stated that if such an application had been received prior to publication of a notification for such permit/licence/lease for a particular area and that such an application had not been disposed of, it should be treated as received on the same day for the purpose of assigning priority.
The applications that have been rendered ‘ineligible’ now in the wake of MMDR Act, 2015, were made since the year 2006. However, the erstwhile Congress-NCP Government did not take pains to dispose of a majority of the applications received between 2006 and 2011. In fact, ‘The Hitavada’ had published a report on December 19, 2013, highlighting that the erstwhile State Government had not issued a single mining permit since 2009. Then also, half of the notified areas and applications for mining permit were in Vidarbha region alone. This had blocked mineral exploration and related industrial development.
As per the Mineral Concession Rules, 1960 (as amended up to May 5, 2005), the State had to dispose of application for grant of mining lease within 12 months of receipt of the application. Similarly, the application for reconnaisance permit and prospecting licence were to be disposed of within six and nine months respectively from the date of application. However, as it was not done, exploration of the mineral deposits in Vidarbha estimated worth a whopping Rs 3,633 lakh crore, had been placed on backburner.
Now that the DGM has declared all applications received previously but not disposed of till the date of MMDR Act, 2015, coming into force, all eyes are on next step. For, MMDR Act of 2015 has brought out major changes by which mineral concessions for major minerals will be granted through auction only. The authorities believe that auction process may fetch higher mineral revenue to the State in addition to royalty. However, this also places responsibility on State Government to increase exploration activity.

District-wise applications rendered ‘ineligible’ in Vid 
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District         Notified areas     Applications     Area involved
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Nagpur         33                        1,291           1,473.51 Ha
Bhandara      23                           816              591.03 Ha
Gadchiroli     12                           483           2,282.19 Ha
Gondia         10                           416              305.04 Ha
Chandrapur  32                           351         38,640.53 Ha
Yavatmal      21                           284           4,744.67 Ha
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Total            131                       3,641         48,036.97 Ha
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(11-09-15)