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Thursday, July 15, 2010

Fwd: [OrissaConcerns] Orissa HC rejects government’s recommendation on Khandadhar mines to Posco



---------- Forwarded message ----------
From: Anivar Aravind <anivar@movingrepublic.org>
Date: Thu, Jul 15, 2010 at 8:21 AM
Subject: [OrissaConcerns] Orissa HC rejects government's recommendation on Khandadhar mines to Posco
To: connect@lists.orissaconcerns.net


Orissa HC rejects government's recommendation on Khandadhar mines to Posco
http://orissaconcerns.net/2010/07/orissa-hc-rejects-posco/
The Hindu
Correspondent

CUTTACK: In a setback to the Rs.51,000-crore Posco steel plant planned
at Paradeep, the Orissa High Court on Wednesday set aside the State
government's recommendation for granting the South Korean steel major
a licence for prospecting in the Khandadhar iron ore mines in
Sundargarh district.

Allowing a writ petition filed by Geomin Minerals and Marketing (P)
Ltd, a Bhubaneswar-based company, a Division Bench of Justices B.P.
Das and B.P. Ray directed the State government to take a fresh
decision on the licence giving preferential right of consideration to
the petitioner. In January 2009, the government recommended that the
Centre grant Posco a licence for prospecting on 2,500 hectares of the
Khandadhar mines. The recommendation was based on Section 11(5) of the
Mining and Minerals (Regulation and Development) Act.

Terming the decision "arbitrary" and "illogical," Geomin Minerals
challenged it in the High Court, claiming that it had made the first
application for a mining lease in the area way back in August 1991.

The Bench said that the preferential right for consideration was
available to the petitioner, and the recommendation made in favour of
Posco was not valid.

Urging the court to restrain the government from considering
applications for mineral concessions filed by the latter applicants
until its application was disposed of, Geomin Minerals also sought an
order to dispose of all its applications pending with govt.

Holding that the writ petition was not premature and was maintainable
as there was no alternative remedy, the High Court directed the
government to dispose of all pending applications of the petitioner in
four months.

A dozen other petitions, including an intervention petition filed by
Visa Steel Ltd, were tagged to the petition of Geomin Minerals. The
Bench, however, rejected Visa Steel's contention and asked it to file
an independent writ petition if it had any cause of action.
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Palash Biswas
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