Shivangi Prakash-
Published On: September 27, 2021 at 14:50 IST
The Chhattisgarh High Court has put a stop to the Union government’s Mines and Minerals Development (Amendment) Act 2021, which would have allowed third-party leasing of non-coal mining blocks.
After hearing the case in one of the mines in Dantewada, the Court ruled that no third-party rights may be created on the mines until the writ petition was resolved.
Major Chhattisgarh based companies such as Jindal Steel and Power Limited (JSPL), Jayaswal Neco, and others have challenged the Act’s validity, which seeks to Auction 572 dormant non-coal blocks across the country.
The new Amendment was considered as a setback for industries that claimed to have invested much in the state.
A Division Bench of the Chhattisgarh High Court has ordered that any new auctions of such mines be postponed till further notice.
The Petitioners said that after obtaining a mining license years ago, they wanted to invest in difficult places where the mining operation is still onerous.
Vivek Tankha, JSPL’s Senior Counsel, argued that the Mines and Minerals Development (Amendment) Act 2021 was unconstitutional, and that the resulting “Notice Inviting Tender” was similarly unsustainable.
The next hearing on the Industries’ Petition has been set for October 6, 2021. Union Minister of Mines Pralhad Joshi said in March when proposing the Bill in the Lok Sabha that the abolition of the provision of 10A (2) (b) through the amendment would result in the auctioning of 572 non-coal mining blocks.
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