Temporary Work Permits, FC and EC in Store as Quick-Fix Arrangements for Odisha Miners - Director
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Bhubaneswar - Winning bidders in Odisha's mine auctions will first have to apply for temporary work permits and forest clearance (FC) which will help them to start mining after the leases expire, D.K. Mohanty, mines director of Odisha said on Wednesday.
Mohanty was spelling out the correct procedure for the new owners to get started with mining their winning blocks.
"As soon as the auction process is over, they will get the letter of intent," Mr Mohanty said.
Based on the letter of intent, they will be issued temporary working permits and FC for one year and three months, he added.
And then, based on the FC, the winning party can apply for the environment clearance (EC), he said.
"In any case, they have to apply for fresh EC and FC," he added highlighting that the current arrangement will be temporary.
On Wednesday evening CNBC TV 18 reported that that an amendment will be made to the MMDR Act to ensure smooth transition of leases expiring on March 31.
Mohanty said the application for FC will be a simplified one and would take 10-15 days or so to be filed. After this, the forest department may take 10-15 days to grant EC.
So all in all, there would be a likely gap of a month and a half before mining resumes in the 19 mines that are currently being auctioned.
However, in the mining industry, the are mixed views with some members being highly sceptical about continuity in mining in Odisha, the largest iron ore producing state.
"There could be chaos and it will take some years for things to be normal again," said the manager of a large mine in Keonjhar.
A mid-sized sponge iron producer said the result of the uncertainty has led to panic and prices have reacted to it.
"The market is running," the producer said. "It looks like we will have to buy iron ore at the rate of pellets."
~ Inputs by Ruchira Singh
