Imposing a limit on iron ore mining in Odisha will hinder India’s growth path and undermine the vision of Atma Nirbhar Bharat, the Central and Odisha governments informed the Supreme Court, which is currently reviewing a petition regarding the imposition of a cap on extraction, akin to those previously established in Karnataka and Goa to promote intergenerational equity in the conservation of natural resources.
The court was informed that circumstances have evolved since 2013, when the cap on iron ore mining was first enacted in Karnataka and later in Goa. Two Union ministries – the Ministry of Mines (MoM) and the Ministry of Environment, Forests and Climate Change (MoEFCC) – asserted that more stringent regulatory measures and legal protections have been implemented to prevent illegal mining, as highlighted by the court in Karnataka, which was in breach of existing laws.
Odisha presently accounts for fifty percent of the nation’s iron ore output. The Centre contended that even though millions of tonnes of ore are being mined, the resources within the state have experienced a 133% rise, increasing from 4,180 million tonnes in 2000 to 9,737.24 million tonnes in 2023.
This resource base is poised for significant growth in the forthcoming years, as the Ministry of Mines indicated that 71.52% of the potential area for iron ore in the state remains to be geologically surveyed.
Any restrictions on the extraction of iron ore or manganese will adversely affect steel production, the government stated, elaborating, “India is currently on a robust growth path with the overarching aim of achieving widespread enhancement in the living standards of all segments of society. To fully realize its growth potential, the country necessitates the development of infrastructure such as airports, railways, bridges, ports, real estate, manufacturing, and more. In all these areas, domestic steel production will be critically important.
In a distinct affidavit, the Odisha government stated, “Every industry (defense, healthcare, automobile, etc.) depends on steel production, which is continually on the rise. Imposing a cap on iron ore mining would result in a significant shortfall in the production of steel and other metals. The vision of Atmanirbhar Bharat relies on mineral production, which would be undermined if unwarranted capping is enforced.”
The Centre additionally informed the court that the principle of “inter-generational equity” does not imply the prohibition or limitation of mineral mining. “It should be comprehended in a comprehensive manner, taking into account the developmental requirements of the nation, the augmentation of resources or reserves, and the potential for recycling. Based on all these criteria, the data unequivocally indicates that there is no justification for capping iron ore production in Odisha,” the Centre asserted.
The affidavits were submitted in response to a directive issued by the Supreme Court, which is currently reviewing a petition submitted by the nonprofit organization Common Cause. This organization has been advocating for a limit on mining activities in Odisha, drawing on previous instances of extensive illegal mining in Karnataka and Goa.
The petitioners, represented by advocates Prashant Bhushan and Pranav Sachdeva, highlighted that in August 2017, the Supreme Court had ordered that compensation be collected from miners who extracted iron ore in Odisha beyond the allowed limits. Bhushan noted that the state has not succeeded in recovering amounts exceeding ₹2700 crore.
A bench comprising Justices Dipankar Datta and Augustine George Masih reprimanded the state for failing to recover the compensation dues, despite an order issued in 2017.
It provided the state with eight weeks to outline the measures being implemented to recover the dues from private miners.
Regarding the mining cap, the court scheduled the matter for review in January, permitting Common Cause and amicus curiae senior advocate ADN Rao to respond to both affidavits.
In addition to the Ministry of Mines, the Ministry of Environment, Forest and Climate Change (MoEFCC) informed the court that the iron ore production in Odisha stands at 159.22 million tonnes, while the Environmental Carrying Capacity (ECC) approved for iron ore mines in Odisha is 272.98 million tonnes until 2024-25.
Consequently, it stated that the actual production is significantly lower than the ECC sanctioned capacity.
The MoEFCC additionally informed the court that in 2023, the issue of imposing a limit on mining activities in Odisha was thoroughly evaluated in collaboration with the expert organization CSIR-NEERI, which did not endorse the proposal due to existing technological advancements and legal amendments. Rule 35 of the MCDR (Mineral Conservation and Development Rules) 2017 stipulates a star rating system for mining leases based on the sustainable mining practices implemented by miners in accordance with NEERI’s recommendations.
Moreover, the regulatory framework governing the mining sector has experienced significant transformations with the establishment of an auction system for the allocation of mineral concessions. The Centre emphasized that securing all necessary statutory clearances is obligatory prior to the execution of the mining lease.
