The Odisha government is planning to set aside those mines for its Odisha Mining Corporation (OMC) which are not under any Prospecting License (PL) or Mining Lease (ML). They will soon discuss this matter with the Union Mines Ministry and notify them about their decision for reserving those areas for OMC which hold minerals in them.
Government had made a resolution on September 18, 2012, according to which the areas bearing iron ore, manganese ore, chromite ore and bauxite were to be reserved by OMC to hold them under PL and ML. However the central government did not approve this resolution considering it to be not under the mining laws.
Rokhum Lalremruata, Director of Union Mines ministry had written to the Odisha steel & mines secretary in February 2013, saying, “The state government cannot reserve any area not already held under any PL or ML for undertaking prospecting or mining operations through a government company or corporation owned or controlled by it, unless it has the approval of the Central government as laid down in Section 17 (A) (2) of Mines and Minerals (Development & Regulation) Act-1957. The decision to reserve the area in question in favor of OMC without seeking approval of the Central government is not in consonance with Section 17 (A) (2) of MMDR Act.”
The state government is planning to reserve the mineral bearing areas for OMC in order to add up the price value of the mineral and also to gain maximum profit for the local communities by commencing the mining operations. They are giving stress on value addition as they expect to increase the employment, revenue generation and set up some subsidiary and progressive industries in the near future.