The government of the Indian state of Goa will initiate the process of auction of iron ore mining leases in line with the directives of India's Supreme Court to ensure the earliest resumption of operations of mines, possibly by the end of 2018, a Goa government official said on Wednesday, February 14.
Referring to a statement issued by Goa chief minister Manohar Parrikar, the official said that, in view of the court verdict, the state government had no alternative but to put the 88 mining leases cancelled by the Supreme Court up for auction.
“It is only an auction that can resolve the issue but in an auction we cannot restrain anyone from participating and the government is studying all aspects of the Supreme Court order,” Manohar Parrikar had said in a public statement issued on Tuesday, February 13.
“We are not in favor of any kind of corporation for handling the cancelled leases. The proposal for forming a corporation to handle the leases is not viable as the state government will invite multiple problems,” Parrikar had said in his statement.
According to the government official, the Supreme Court order had only directed the closure of mining operations by March 15, 2018 and not iron ore exports and it is estimated by the government that exports from current inventories and production from mines between now and March 15 will enable overseas shipments to continue to around December by when the state government will strive to complete auction of leases and regularize mining operations in the state.
The Supreme Court in a judgment earlier this month cancelled 88 mining leases which had been renewed by the Goa government for the second time, holding such a renewal illegal and directing that all mining leases will have to be issued only through an auction process.