GMOEA looks at this opportunity as a solution to the controversial issue of deemed leases PANJIM: The Union government’s announcement that it would amend the Mines and Minerals Development and Regulation (MMDR) Act 1957, has come as a ray of hope for the iron ore mining industry in Goa. The industry is currently in doldrums due to lack of policy clarity by both the State and Central governments over the granting of mining leases which would enable resumption of mining operations. Goa’s apex mining industry body – Goa Mineral Ore Exporters Association is looking at this opportunity as a solution to the controversial issue of deemed mining leases, whose operation were termed ‘illegal’ by the Supreme Court. In Goa all the mining leases were operational under deemed provision post its suspension in September 2012. The Apex Court in its order related to Goa mining on April 23 had stated that the Government may grant iron ore and other ores mining leases in Goa in accordance with its policy decision and in accordance with MMDR Act and the Rules made there under in consonance with Constitutional provisions. “We hope that necessary amendments are done to the MMDR Act so that the mining operations will resume at an early date and ambiguity in the act is clarified,” GMOEA Secretary Glenn Kalavampara told Herald. Kalavampara said that not just in Goa but the deemed provision has hit all the mining rich states of India including Orissa. “The entire mining sector across India is in the ambiguity due to the present circumstances prevailing due to the deemed mining provision. It is not just affecting Goa but the entire country,” he added. Union Finance Minister Arun Jaitley in his Budget speech presented announced amendment to MMDR Act which will help to solve the current impasse that has engulfed the mining industry. The Union Minister said that government is planning to remove hurdles to mining in the country by amending the Act. “It’s a correct decision to amend MMDR Act. At present there is lot of ambiguity due to various interpretations of the Act. The amendment will help the entire mining sector in the country,” Kalavampara opined. The Supreme Court while lifting its ban imposed on mining operations in Goa in April, declared that the iron ore mining extraction in the State after 2007 as ‘illegal’ considering the fact that there cannot be deemed renewal of mining leases after November 22, 2007 as per the MMDR Act. “As we have held that the deemed mining leases of the lessees in Goa expired on 22.11.1987 and the maximum period (20 years) of renewal of the deemed mining leases in Goa has also expired on 22.11.2007, mining by the lessees in Goa after 22.11.2007 was illegal. We are of the opinion that sub-rule (6) of Rule 24A of the Mineral Concession (MC) Rules will apply to a case of first renewal under sub-section (2) of Section 8 of the MMDR Act other than a case covered under sub-rule (9) of Rule 24 A of the MC Rules, but will not apply to renewal under sub-section (3) of Section 8 of the MMDR Act,” Court had stated. Pointing out to the announcement about revision of mining royalty as announced in the budget, Kalavampara said that the stakeholders should be taken into confidence as the current taxes paid by mining industry are high. The industry has demanded to rationalize the royalty rate.