Absence of raw material linkage hits industries

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Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsWith the Naveen Patnaik Government failing to provide raw material linkage to mineral-based industries, is the dream of industrialisation going up in smoke? Out of 600 mining leases of major minerals, 490 leases are not in operation, including 76 mines of iron and manganese in the State. The Society for Geoscientists and Allied Technologists (SGAT), a body of mineral experts, on Saturday expressed apprehension over the state of mineral development in Odisha. It observed that the prevailing scenario may well force companies, which had signed MoUs with the State Government, to shut down their operations and leave. The SGAT gave out information to substantiate its fears. Since 1984, it said, as many as 206 renewal of mining lease (RML) applications are pending with the Government. Since 2000, 150 reconnaissance permission applications are filed. Of them, 21 applications have been granted and executed. Since 2005, the progress has slowed down further. While 61 applications have been rejected, 26 applications are recommended for grant and 15 applications for rejection. While the closure of mines can be attributed to non-compliance of statutory clearances, the delay in obtaining these approvals is due to the complex processes, adopted by various departments like Mining, Revenue and Disaster Management and Forest, said BK Mohanty, Advisor to SGAT. He said mineral development processes have hit a stumbling block in the State. As on August 31, 2010, more than 4,813 mineral concession (MC) applications are pending in different districts, while 484 applications are with the Directorate of Mines, another 756 are with Steel and Mines Department, he added. SK Sarangi, president of SGAT, echoed the same feeling and said that to process an MC application, one has to move a minimum of 186 tables for obtaining grant and execution which explains how tedious the whole process has become. The closure of iron ore mines has severely affected steel industries in the State most of which are closed. The current state of affairs with MC applications needs a thorough study by the Odisha Government. Production of iron ore in 2009-10 was 79.68 million tonne, in 2010-11 it was 81.14 million tonne and 2011-12 it has come down to 60.62 million tonne, he added. The society suggested that an intra-departmental review committee from Mining, Forest and Revenue be constituted to review status of MC applications every two months. Attempts must be made to reopen closed mines facilitating them to obtain all statutory clearances required, the SGAT said.first published:January 01, 1970, 05:30 ISTlast updated:January 01, 1970, 05:30 IST
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With the Naveen Patnaik Government failing to provide raw material linkage to mineral-based industries, is the dream of industrialisation going up in smoke?

Out of 600 mining leases of major minerals, 490 leases are not in operation, including 76 mines of iron and manganese in the State.

The Society for Geoscientists and Allied Technologists (SGAT), a body of mineral experts, on Saturday expressed apprehension over the state of mineral development in Odisha. It observed that the prevailing scenario may well force companies, which had signed MoUs with the State Government, to shut down their operations and leave.

The SGAT gave out information to substantiate its fears. Since 1984, it said, as many as 206 renewal of mining lease (RML) applications are pending with the Government. Since 2000, 150 reconnaissance permission applications are filed. Of them, 21 applications have been granted and executed. Since 2005, the progress has slowed down further. While 61 applications have been rejected, 26 applications are recommended for grant and 15 applications for rejection. While the closure of mines can be attributed to non-compliance of statutory clearances, the delay in obtaining these approvals is due to the complex processes, adopted by various departments like Mining, Revenue and Disaster Management and Forest, said BK Mohanty, Advisor to SGAT.

He said mineral development processes have hit a stumbling block in the State. As on August 31, 2010, more than 4,813 mineral concession (MC) applications are pending in different districts, while 484 applications are with the Directorate of Mines, another 756 are with Steel and Mines Department, he added.

SK Sarangi, president of SGAT, echoed the same feeling and said that to process an MC application, one has to move a minimum of 186 tables for obtaining grant and execution which explains how tedious the whole process has become. The closure of iron ore mines has severely affected steel industries in the State most of which are closed.

The current state of affairs with MC applications needs a thorough study by the Odisha Government. Production of iron ore in 2009-10 was 79.68 million tonne, in 2010-11 it was 81.14 million tonne and 2011-12 it has come down to 60.62 million tonne, he added.

The society suggested that an intra-departmental review committee from Mining, Forest and Revenue be constituted to review status of MC applications every two months. Attempts must be made to reopen closed mines facilitating them to obtain all statutory clearances required, the SGAT said.