Odisha

I. INTRODUCTION

Minerals are the property of State irrespective of surface ownership. In order to exploit any mineral, the concerned State Government should give permission by following the mining policy of the state concerned. The seventh schedule under article 246 of the Constitution of India deals with the division of powers between the Union and the States by classifying the powers into three lists, Viz. Union List, State List and the concurrent List. Under list I, entry 54, of the said schedule the Central Government is empowered to make legislation to regulate Mines & Minerals in the country. However to the limited extent under list II entry 23 of the schedule the states are also delegated with powers over the subjects not covered by the Central Legislation. The Mines & Minerals (Development and Regulation) Act, 1957 (MMDR Act) was brought in by the Central Government which is a comprehensive legislation in this subject. For the purpose of this Act, minerals are classified as Major Minerals and Minor Minerals. All the minerals except those specified as Minor Minerals u/s 3(e) of the Act are Major Minerals. To name a particular mineral as minor mineral, there must be a declaration to this effect by the Central Government u/s 3(e) of the Act. In this article we deal with only ―Stone Aggregates.‖ A stone aggregate is the name derived commercially in course of time by the civil engineers in the construction projects for their use. This terminology is not assigned as a mineral by the Central Act. Further the MMDR Act also delegated power to the State Government for framing its own rules touching various aspects under Section 15 and Section 23C of the Act. This means the State Government need to frame its own rules as per the limitations contained in the Central Act. In this article the author would like to touch upon various provisions relating to stone aggregate mining in the states of Odisha.

II. NOMENCLATURE OF STONE AGGREGATE

As said earlier the nomenclature of any mineral is important to fit in the policy frame work. Depending on the nomenclature the relevant rules are applicable to regulate the mining activity. Various minor minerals are declared as minor minerals from time to time by the Central Government u/s 3(e) of the Act. Now let us confine to the nomenclature for stone aggregate. The nomenclature of Stone Aggregate is used mainly in concrete making. But it is also used in respect of stone used for soling purpose in road making and as railway ballast as cushion to the railway track. But the entire material is derived out of stone boulders. The Government of India declared ―building stone‖ as minor mineral, at the time of issuing MMDR Act itself. Subsequently vide notification G.S.R. 436(E), Dated: 01-06-1958 ―Boulder, Shingle, Chalcedony pebbles used for ball mill purposes only‖ are added as minor minerals. Further GOI vide notification issued in G.S.R. 341(E), Dated: 25-02-1965 declared ―Stone used for making household Utensils, Quartzite and sandstone when used for purposes of building or for making road metal and household utensils‖ as minor minerals.

III. ODISHA MINOR MINERALS CONCESSION RULES, 2016

With the above preamble now let us deal with the Odisha Minor Minerals Concession Rules, 2016 Published vide Notification No. S.R.O. No. 601/2016 of the Odisha Gazette, Extraordinary No.2280, dated 14.12.2016. These Rules were brought in supersession of earlier Rules in 2004 duly taking cognizance of MMDR Amended Act, 2015.

Chapter I: Deals with definitions, restrictions on grant of various licenses/leases, maximum areas, minimum area and periods of leases. (Rule 1 to 13)

1- The following definitions assigned by Rules are worth to know:

(d) “Captive use” means use of the entire quantity of mineral(s) extracted from the mining lease in a mineral processing unit or mineral beneficiation unit owned by the lessee excluding the mineral of substandard quality or mineral rejects;

(p) “Minimum guaranteed quantity” means, in respect of sources for which the mining plan has been approved, the quantity of extraction approved for the year concerned as per the mining plan and in respect of sources for which mining plan has not been prepared and approved, such extractable quantity as may be assessed by the Competent Authority with approval of the Controlling Authority as the reasonable quantity that may be extracted from the source considering its potential.

(q) “Mining lease” means a lease granted under these rules for specified minor minerals over a compact area;

(r) “Mining Plan” in relation to specified minor minerals means a mining plan prepared under the Granite Conservation and Development Rules, 1999‘ and in relation to all other minor minerals means a mining plan prepared under these rules;

(s) “Own Industry” means an industry of which the lessee is the owner or in which he holds not less than fifty percent of controlling interest.

(t) “Prospecting license-cum-mining lease” means a two stage concession granted for the purpose of undertaking prospecting operation in respect of specified minor minerals followed by mining operation over a compact area;

(u) “Quarry lease” means a lease granted on tenure basis for extraction, collection and/or removal of minor minerals other than specified minor minerals over a compact area;

(v) “Quarrying operation” means any operation undertaken for the purpose of winning any minor mineral other than specified minor minerals and shall include erection of machinery, laying of tramways, construction of roads and other preliminary operations for the purpose of quarrying;

(w) “Quarry permit” means a permit granted for extraction, collection and/ or removal of any specified quantity of minor minerals other than specified minor minerals under Chapter V of these rules;

(aa) “Specified minor minerals” means all minor minerals including decorative stones other than the minor minerals listed at serial No. 1(ii) of Schedule-III;

2- Restriction on prospecting or mining or quarrying operation:- (Rule 3)

(i) No person shall undertake any prospecting operation or mining operation or quarrying operation for minor minerals in any area except under and in accordance with the terms and conditions of a prospecting license-cum-mining lease or a mining lease or a quarry lease or a quarry permit, as the case may be, granted under these rules. (Rule 3(1)).

(ii) Extraction, collection and/or removal of minor minerals by a person from his own land for normal agricultural operations or other bonafide domestic consumptions shall not be construed as mining or quarrying operation. (Rule 3(1)).

(iii) Nothing in this rule shall apply to prospecting operations undertaken by any agency or organization of the State or the Central Government. (Rule 3(1)).

(iv) No person shall transport or store or cause to be transported or stored any minor mineral for the purpose of selling or trading otherwise than in accordance with these rules. (Rule 3(2)).

3- Restriction on grant of prospecting license-cum-mining lease or mining lease or quarry lease or quarry permit:- (Rule 4)

(i) Only Indian citizen will be considered for grant of mineral concessions. However the MMDR Act specifies that company as defined in clause (20) section 2 of the Companies Act, 2013 is entitled to get a lease. This particular provision is absent in the these Rules. (Rule 4(1)).

(ii) As per these Rules following are different mineral concessions. (Rule 4(2)).

a) Prospecting license-cum-mining lease

b) Mining lease

c) Quarry lease

d) Quarry permit

(iii) Out of the above as-far-as stone aggregates is concern it is only quarry lease or quarry permit we are concerned with and hence the article confines only to grant of quarry lease or quarry permit. (Rule 4(3)).

(iv) No quarry lease or quarry permit for road metals including ballast and ordinary boulders shall be granted within the area for which a license-cum-lease or lease has been granted for specified minor minerals [see definition]. (Rule 4(10)).

4- Periods for which prospecting license-cum-mining lease, mining lease and quarry lease be granted for the specified minor minerals (Rule 8)

(i) On the expiry of the lease period, the lease shall be put up for auction as per the procedure specified under these rules. (Rule 8(3)).

(ii) Any holder of a lease granted, where mineral is required for captive use, shall have the right of first refusal at the time of auction held for such lease. (Rule 8(3A)).

(iii) The maximum period for which a quarry lease may be granted shall not exceed ten years and shall be subject to such terms and conditions as may be specified by the Competent Authority. The minimum period for which any such lease may be granted shall be five years. (Rule 8(4)).

Chapter II: Deals with Grant of Prospecting license-cum-mining lease for specified minor minerals (other than stone aggregates). Therefor not discussed here (Rule 9 to 14)
Chapter III: Deals with Grant of Mining Lease for specified minor minerals (other than stone aggregates). Therefor not discussed here. (Rule 15 to 26)
Chapter IV: Deals with Grant of Quarry Leases. (Rule 27 to 33)

1- Grant of quarry lease:- (Rule 27)

(i) The competent authority will issue notification specifying the areas for grant of quarry lease. In the said notification minimum guaranteed quantity of the minor mineral to be extracted in a year by the applicant and the minimum amount of additional charge payable for the same shall be specified. (Rule 27(2)).

(ii) In case the mining plan or Environment Clearance for the proposed lease has been obtained by the Competent Authority, this fact, along with the cost of obtaining thereof shall be recoverable from the selected bidder which shall also be mentioned in the notice. (Rule 27(3)).

(iii) The intending applicant may apply to the Competent Authority in a sealed cover for grant of quarry lease for such area or areas in Form-M in triplicate accompanied by the following documents. (Rule 27(4)).

• Treasury challan showing deposit of one thousand rupees (non-refundable) towards the application fee; (Rule 27(4)(i)).
• An affidavit stating that no mining due payable under the Act and the rules made thereunder, is outstanding against the applicant; (Rule 27(4)(ii)).
• Proof of payment of earnest money equivalent to five percentum of the minimum amount of additional charges specified in the notice and the amount of royalty, both calculated on the basis of minimum guaranteed quantity for one whole year for the minimum guaranteed quantity of minor mineral to be extracted in one full year; and (Rule 27(4)(iii)).
• A solvency Certificate or Bank guarantee valid for a period of eighteen months for an amount not less than the amount of additional charge offered and the royalty payable for the minimum guaranteed quantity for one whole year and a list of immovable properties from the Revenue Authority. (Rule 27(4)(iv)).

(iv) The quarry lease shall be granted in favour of the applicant who has quoted the highest rate of additional charge. if more than one applicant have quoted the highest rate of additional charge, then the applicant shall be selected by draw of lots. (Rule 27(5)).

(v) The minimum amount of additional charge shall be fixed in the auction notice and should not be less than 5% of the rate of royalty. (Rule 27(15)).

2- Mining plan as a pre-requisite to the grant of quarry lease: (Rule 28).

(i) No quarry lease shall be granted by the Competent Authority unless there is a mining plan prepared by the recognized person and duly approved by the authorized officer for the development of the mineral deposits in the area concerned. The recognized person shall not charge any amount in excess of the ceiling on fees specified by the Director. (Rule 28(1)).

(ii) The Competent Authority may cause the mining plan to be prepared and approved. (Rule 28(2)).

(iii) In case the approval under sub-rule (2) has not been obtained by the Competent Authority, the selected bidder shall cause a mining plan to be prepared from a recognized person and approved by the authorized officer having jurisdiction. (Rule 28(3)).

(iv) The recognized person shall prepare the mining plan in Form-O within thirty days from the date of receipt of communication from the selected bidder or Competent Authority and submit the same to the authorized officer for approval. (Rule 28(4)).

(v) The authorized officer shall, after receipt of the mining plan from the recognized person, approve the same within thirty days from the date of receipt of the mining plan or its modification (s), if any, desired by him. (Rule 28(5)).

(vi) The modification of the mining plan for quarry lease shall remain valid for the remaining period of the quarry lease. (Rule 28(10)).

3- Environment clearance for grant of quarry lease:- (Rule 29)

(i) No quarry lease for minor minerals shall be granted without the approval of the appropriate authority under the provisions of the Environment (Protection) Act, 1986. (Rule 29(1)).

(ii) The Competent Authority may apply for and obtain the environmental clearance. (Rule 29(2)).

(iii) In case the clearance under sub-rule (2) has not been obtained by the Competent Authority, the selected bidder shall obtain the environmental clearance before executing the lease deed. (Rule 29(3)).

(iv) The lessee shall be responsible for obtaining environment clearance and implementing the environment management plan. (Rule 29(4)).

4- Adoption of cluster approach in small quarries: (Rule 31)

(i) Individual quarries covering an area less than five hectares and in total not more than one hundred hectare in a development block may be clubbed and declared as cluster by the Competent Authority. (Rule 31(1)).

(ii) For a cluster of mineral concession, an environment management plan shall be got prepared by the Competent Authority and submitted to the appropriate authority authorized to grant the environmental clearance under the provisions of the Environment (Protection) Act, 1986. (Rule 31(2)).

(iii) After obtaining environmental clearance for the entire cluster of sources, the whole source may be leased out as a single source or individual sources within a cluster may be leased out separately, as will be decided by the Competent Authority. However, the terms and conditions provided in the environmental clearance have to be obeyed by all the lessees. (Rule 31(3)).

5- Liability for payment of royalty, dead rent, surface rent, additional charge, amount of contribution payable to the District Mineral Foundation, amount of contribution payable to the Environment Management Fund: (Rule 32)

(i) All the lessees for minor minerals shall be liable to pay royalty or dead rent, surface rent, additional charge, amount of contribution payable to the District Mineral Foundation [it is 30% on royalty] amount of contribution payable to the Environment Management Fund and fees for compensatory afforestation. (Rule 32(1)).

The lessee is liable to pay royalty/dead/surface rent as per the schedule I and schedule II of the Rules. The applicable royalty to stone aggregate is as given below:

NB:- These rates are w.e.f. 14-12-2016. Refer subsequent amendment for revised rates.

(ii) The rates specified in Schedule-I and Schedule-II may be revised by the Government, from time to time, by an amendment made to the said Schedules, but no revision shall be made before the expiry of three years from the date when the rates were last fixed. Where the lessee becomes liable for payment of royalty for any minor mineral removed or consumed by him or his agent, manager and employees or the contractor from the leased area, he shall be liable to pay either such royalty or the dead rent whichever is higher. (Rule 32(2)).

(iii) In case the actual extraction exceeds the minimum guaranteed quantity, such mineral may be removed from the lease area only after payment of royalty, additional charge, amount of contribution payable to the District Mineral Foundation and an amount of contribution payable to the Environment Management Fund on pro-rata basis. (Rule 32(4)).

(iv) The royalty, additional charge, amount of contribution to the District Mineral Foundation and amount of contribution payable to the Environment Management Fund for the period up to commencement of the next year shall be paid on a pro-rata basis before the execution of lease deed. (Rule 32(5)).

(v) For the purpose of determination of minimum guaranteed quantity in the cases where the lease has been executed on or after the 1st April, the minimum guaranteed quantity for the first financial year shall be equal to the minimum guaranteed quantity divided by twelve and multiplied by the number of months remaining in the first year of the lease, treating part of any month as full month. (Rule 32(6)).

6- Conditions of quarry lease: (Rule 33)

(i) The lessee shall commence quarrying operations within three months from the date of execution of the lease deed which shall be carried on in a proper, skilful and workman-like manner and the lessee shall send to the Director and Deputy Director or Mining Officer concerned, under whose jurisdiction the area is located and to the Director of Mines Safety, Bhubaneswar an intimation in Form H of the opening or reopening of the quarry so as to reach them within a period of fifteen days from the date of such commencement. (Rule 33(4)).

(ii) If the lessee does not work upon the quarry for a continuous period of six months, the lease shall be liable to be cancelled, unless prior permission has been granted by the Competent Authority for such stoppage on reasonable grounds. The Competent Authority may, on an application made by the lessee before it is cancelled and on being satisfied that it will not be possible for the lessee to undertake mining operations or to continue such operations for reasons beyond his control, make an order within a period of one month from the date of receiving such application and subject to such conditions as may be specified to the effect that such lease shall not be cancelled. (Rule 33(5)).

(iii) The lessee shall not carry on or allow to be carried on, any quarrying operation at any point within a distance of:—

(a) one hundred meters from any Railway line (except under and in accordance with the written permission of the Railway Administration concerned) and in case of National Highway, State Highway, monuments, heritage sites, or any reservoir, except in accordance with the previous permission of the Collector.

(b) fifty meters from any tank, canal, road (other than a National or State Highway or other public works or buildings or inhabited sites), except under in accordance with the previous permission of the Collector. (Rule 33(8)).

(iv) The State or Central Government shall have right to construct any road, railway or canal or reservoir or to lay electric or telephone lines in or over the lands held under the lease. The lessee shall be given at least sixty days prior notice before the right is exercised and the area thus utilized shall be excluded from the area held under lease. (Rule 33(10)).

(v) The lessee, with prior written permission of the competent authority, can erect at his own cost, temporary structures including buildings required for the purpose of quarrying operation within the leased area, without violating any law or obstructing any natural flow, community access or without causing damage to any embankment or public property, which shall be dismantled by the lessee at his own cost on completion of the lease term or on determination of the lease. The competent authority can pass orders to dismantle such structures if found erected illegally or causing damage to public. (Rule 33(11)).

(vi) The lessee shall obtain permission of the competent authorities of the Forest Department, Odisha to carry on any operation in forest area. (Rule 33(13)).

(vii) The lessee shall abide by the provisions of all laws for the time being in force, relating to the working of quarries and matters affecting the safety, health and convenience of the persons employed for quarrying and of the public and he shall also obey all existing laws of way, water and other easements and shall not use power cutters and other machinery in case of laterite quarries. (Rule 33(14)).

(viii) The lessee shall report about all accidents involving injury or loss of life or loss or damage to property forthwith to the concerned Competent Authority and Collector of the District. (Rule 33(18)).

(ix) The Controlling Authority shall have the right to pre-emption at current market rates over all minor minerals extracted or collected by the lessee and shall be indemnified by the lessee against the claims of any third party in respect of such minerals. (Rule 33(20)).

(x) The lessee shall ensure proper maintenance of hill slopes so as to prevent major erosion and observe all such safeguards as provided in the Mines Act, 1952 and the rules and regulations framed thereunder from time to time. (Rule 33(24)).

(xi) The lessee shall carry out quarrying operation with appropriate environment safeguards and shall take such steps for reclamation and raising of plantations in the lease area in line with the prescriptions under rules 29 to 37 of the Granite Conservation and Development Rules, 1999. (Rule 33(25)).

(xii) The lessee shall abide by the provisions of the Mines Act, 1952 and rules and regulations framed thereunder, the Explosives Act, 1884 and rules made thereunder for development of the source of minor minerals in workman like manner and for avoidance of any danger arising out of such winning of minor mineral. (Rule 33(29)).

Chapter V: Deals with Grant of Quarry Permits. (Rule 34 to 38)

1- Application for quarry permit:- (Rule 34)

This chapter deals with grant of quarry permit under Rule 34 to 38 of the Rules. This is like a temporary permit for short period requirement. The application shall be filed in FORM-Q with basic requirements specified in Rule 35 of the said Rules. But this is granted only to the State Agency / Project Proponent for public purposes.

a) “State Agency” shall mean any Department of the State or Central Government or company or corporation under the control of the State or Central Government and shall include any Government organization as defined in sub-rule (3) of rule 39.

b) “Project Proponent for public purposes” shall mean any person or firm or company executing any Government project and shall include schematic beneficiaries under Government scheme like IAY, RAY etc.

2- Duration of quarry permit:- (Rule 36)

The period of a quarry permit shall not exceed three months at a time.

3- Conditions of quarry permit: (Rule 37)

The grantee shall pay all payments applicable. The depth of the quarry below the surfaces shall not exceed six meters. Other conditions remains same expect requirement of Mining Plan and Environment Clearance. But as per provisions of Environmental notifications the operations will fall within the meaning of Mining Operations in mining project and hence EC may be mandatory. (Authors Opinion).

Chapter VI: Deals with reservation of mines for Government Organisations wherever necessary with the permission of Central Government. Therefore not discussed. (Rule 39).

Chapter VII: Deals with other issues. (Rule 40 to 67).

1- Status of grant on death of applicant for prospecting license-cum-mining lease or mining lease or quarry lease: (Rule 40)

(i) Where a successful bidder, for grant of prospecting license-cum-mining lease or mining lease or quarry lease, dies before the order of such grant is passed, such order shall be passed in the name of his legal heir or representatives. (Rule 40(1)).

(ii) Where a successful bidder, in respect of whom an order granting a prospecting license-cum-mining lease or mining lease or quarry lease is passed, dies before the lease deed is executed, the order shall be deemed to have been passed in the name of legal heir or representative of the deceased and such legal heir or representative shall have the right to execute the deed required for the purpose. (Rule 40(2)).

2- Security deposit: (Rule 42)

The successful bidder shall deposit rupees Ten thousand for quarry lease before the deed is executed as security for due observance of the terms and conditions of quarry lease, as the case may be.

3- Execution and registration of license or lease: (Rule 43)

A quarry lease shall be executed in its specified form within three months of the order for granting such lease or within such further period as may be allowed by the Controlling Authority.

4- Transfer of license or lease: (Rule 45)

(i) Where a prospecting license-cum-mining lease or mining lease or quarry lease has been granted through auction, the holder thereof may transfer the same in the manner mentioned hereinafter. (Rule 45(1)).

(ii) Any transfer as mentioned in sub-rule (1) may be made with prior approval of the Controlling Authority, to any person eligible to hold a prospecting license-cum-mining lease or mining lease or quarry lease in accordance with the Act and these rules, subject to the following conditions, namely:— (Rule 45(2)).

(iii) The transfer shall be valid only for the unexpired portion of the validity of the prospecting license-cum-mining lease or mining lease or quarry lease, as the case may be. (Rule 45(2)(i)).

(iv) The transferee shall make a fresh security deposit himself for the purpose of transfer. (Rule 45(2)(ii)).

(v) The Controlling Authority shall not give the approval for such transfer of the prospecting license-cum-lease or mining lease or quarry lease unless the transferee has accepted all the conditions and liabilities, which the transferor was having in respect of such prospecting license-cum-mining lease or mining lease or quarry lease, as the case may be. The prior approval of the Controlling Authority shall not be necessary, if the prospecting license-cum-mining lease or mining lease or quarry lease is mortgaged to a Nationalized Bank or Government Industrial Corporation or Government Financial Corporation or Government Financial Institutions to obtain financial assistance, and such period of mortgage shall be co-terminus with the period of prospecting license-cum-mining lease or mining lease or quarry lease and right of the State Government to collect Government dues from the lessee shall be the first charge on the mortgaged property. (Rule 45(2)(iii)).

(vi) A transfer deed for the prospecting license-cum-mining lease or mining lease or quarry lease, in a form as near to the original executed deed as possible, shall be executed within three months from the date of approval of the Controlling Authority registered under the Registration Act, 1908. (Rule 45(3)).

(vii) The Controlling Authority may, by an order in writing, terminate any prospecting license-cum-mining lease or mining lease or quarry lease, as the case may be, at any time if the lessee has transferred any lease or any right, title or interest therein otherwise than in accordance with sub-rule (2). (Rule 45(4)).

5- Procedure for filing appeal: (Rule 46)

(i) Any person aggrieved by an order of the Competent Authority, may, within one month from the date of communication of the order, prefer an appeal in Form-X against such order, to the Sub- Collector, if the order is passed by the Tahasildar, to the Collector, if the order is passed by the Sub-Collector, to the Revenue Divisional Commissioner, if the order is passed by the Collector, to the Conservator of Forests, if the order is passed by the Divisional Forest Officer, to the Joint Director, if the order is passed by the Mining Officer or Deputy Director, to the Director, if the order is passed by the Joint Director and to the State Government in the Department of Steel and Mines, if the order is passed by the Director. (Rule 46(1)).

6- Environment Management Fund: (Rule 49)

(i) An amount equal to five percentum of the royalty payable shall be collected from the lessee and shall be paid to the Environment Management Fund in such manner, as may be specified in the notification, issued by the Government and such amount shall be realized along with the royalty. (Rule 49(2)).

7- Penalties: (Rule 51)

There are stringent penal provisions with empowers the officers to seize the equipment and also impose penalties and to prosecute.

8- Payment of compensation to owner of surface rights etc: (Rule 52)

(i) The holder of a prospecting license-cum-mining lease or mining lease or quarry lease shall be liable to pay to the occupier of the surface of the land over which he holds the prospecting license-cum-mining lease or mining lease or quarry lease, as the case may be, such annual compensation as may be determined by an officer appointed by the State Government by notification in this behalf in the manner provided in sub-rules (2) to (4). (Rule 52(1)).

(ii) In the case of agricultural land, the amount of annual compensation shall be worked out on the basis of the average annual net income from the cultivation of similar land for the previous three years. (Rule 52(2)).

(iii) In the case of non-agricultural land, the amount of annual compensation shall be worked out on the basis of the average annual letting value of similar land for the previous three years. (Rule 52(3)).

(iv) The annual compensation referred to in sub-rule (1) shall be payable on or before the 1st July of every year. (Rule 52(4)).

9- Removal of minor mineral from an area leased out for major mineral: (Rule 56)

(i) If any minor mineral is found in an area leased out for major mineral, the minor mineral can be removed with permission of the Government in the Steel & Mines Department in the case of specified minor minerals and with the permission of the concerned Deputy Director or the Mining Officer in the case of other minor minerals, on payment of advance royalty and other dues prescribed for the said minor mineral. (Rule 56(1)).

(ii) In case of any doubt whether any particular mineral is a minor mineral or otherwise, the matter shall be referred to the Director for the decision and in case of any doubt whether a minor mineral can be used as decorative stone or for industrial and prescribed purpose or for export, the Competent Authorities of the Revenue & Disaster Management Department and the Forest & Environment Department would obtain the specific views of the concerned Mining Officer or Deputy Director of the District or Circle. (Rule 56(2)).

10- Miscellaneous: (Rule 58)

(i) No holder of prospecting license-cum-mining lease or mining lease or quarry lease or quarry permit or auction purchaser shall despatch any minerals from an area without a valid transit pass in Form-Y issued by – (Rule 58(1))

(ii) The Deputy Director or Mining Officer having jurisdiction in case of specified minor minerals; and (Rule 58(1)(a))

(iii) The Competent Authority (as per Schedule IV Tahasildar concerned is the authority) in case of other minerals. (Rule 58(1)(b)).

(iv) The transit pass should be printed and machine numbered in the Government Press and supplied by the respective authority as aforesaid on payment of the cost thereof as fixed by the Director of Mines with the approval of the Government. (Rule 58(2)).

(v) The Government may impose such restrictions on sale of minor minerals to places outside the State as it may consider expedient in the public interest. (Rule 58(3)).

(vi) No authority in charge of execution of public work shall pass any bill for reimbursement of royalty paid on any minor mineral unless, the person claiming such reimbursement produces the transit pass referred to in sub-rule (1). (Rule 58(4)).

(vii) The provisions of sub-rule(2) shall apply mutatis mutandis to cases for any bill claiming the reimbursement of the cost for purchase of any minor mineral and is submitted before any authority in charge of execution of public work and such authority shall not pass the bill unless the receipts of the amount so paid is produced. In case the executant fails to produce transit pass and money receipt in support of payment of royalty, the public works authority shall deduct the royalty and the cost of mineral and remit it to Government account in the Government Treasury. (Rule 58(5)).

(viii) Where an authority referred to in sub-rule (4) or sub-rule (5) is requested by a Competent Authority or Controlling Authority to furnish information on quantity of minor minerals supplied to him, he shall furnish such information without delay. (Rule 58(6)).

(ix) With a view to check illegal mining, transportation and storage of minor mineral, the State Government may impose restrictions on such activity, if necessary, and may also issue guidelines for the purpose. (Rule 58(8)).

IV. ORISSA MINERALS (PREVENTION OF THEFT, SMUGGLING & ILLEGAL MINING AND REGULATION OF POSSESSION, STORAGE, TRADING AND TRANSPORTATION) RULES, 2007.

After the introduction of Section 23C by way of amendments to MM(DR) Act, 1957 with effect from 20.12.1999, delegating powers to state Government to make rules for preventing illegal mining, transportation and storage of minerals, establishment of check post, Inspection, Checking and search of minerals at the place of excavation or storage or during transit etc., the state government by making use of these delegations brought out Orissa Minerals (Prevention Of Theft, Smuggling & Illegal Mining and Regulation of Possession, Storage, Trading and Transportation) Rules, 2007. These Rules were further amended on 16-4-2021 vide Notification No.3803―IV(A) SM-77/2016/SM.

These Rule mandates to obtain Trading License by the persons who shall carry on business of buying, possessing, storing, selling, supplying, transporting, distributing or delivering for sale or processing of minerals at any place for the purpose of sale or consumption or otherwise deal with any mineral. However existing lease holders are not required to obtain such licence if the processing industry is located within the leased area. All the dealers are required to account for the mineral purchased by them and for the transport of minerals or processed minerals from the place of processing units or depots, they need to obtain transit passes from the Competent Authority as per the said Rules. They are not charged anything in this process except nominal user charges. All stone aggregating industry require such trading licence under these Rules and dispatch stone aggregate only with transit passes issued under these Rules.

V. CONCLUSION

Minerals are the backbone for the development of the Nation. Among various minerals, stone aggregate forms important mineral contributing for the development of the civilization. A small house to mammoth complexes, apartments etc. would not have been possible without stone aggregate. Mother earth has given minerals for the cherishment of her children. No matter we create pain to her in extracting the stone by taking due care to preserve our valuable environment. The proper mining policy is essential to achieve this objective. Transportation cost is becoming an impediment in the provisional cost of stone aggregate. Rapid urban agglomeration is resulting in blocking of potential hillocks containing suitable material for making stone aggregates in the close proximity of the consuming places. Since minerals cannot be created we must ensure proper utilization of minerals wherever nature has provided by way of bringing a policy of exclusive mining zones by not allowing any other activity in such areas with in minimum distance at least of 1 km. Cluster mining approach in place of existing small mines of less than 5 hectares areas must be encouraged. Resorting to auctioning of stone aggregate mines which is detrimental to the establishment of stone crushing industry. Instead such area can be kept under the control of the State PSU to regulate the activity by way of taking up large scale mining by forming a JV with all the stake holders who are consumers of boulders in the stone aggregate industry. The mining will be large scale and the required boulders will be supplied to the industry duly following all parameters including protection of environment etc. Once scientific mining is resorted it may not cause any hindrance to the local areas and this process will help releasing potential mineral deposits which are blocked on safety reasons.

VI. ACKNOWLEDGEMENTS

The author would like to place on record his acknowledgements to the Department of Steel and Mines, Government of Odisha and the Department of Mines for its information made available in the website. But for this it would not have been possible to write this article. Care is taken to incorporate all amendments, however there may be omissions of such amendments. This article given overall picture of the policy.