1996 (7) TMI 569 - SC - Indian Laws

Issues Involved:
1. Validity of the Orders of the Central Government dated June 3, 1993, and October 5, 1993.
2. Relevance of the Rao Committee Report and the decision in Indian Metals case for renewal of leases u/s 8(3) of the Act.
3. Locus standi of prospective applicants in proceedings considering the renewal of TISCO's lease.
4. Relevance of the criterion of captive requirement of mining industries and the principle of equitable distribution of mining leases to the concept of mineral development u/s 8(3) of the Act.
5. Validity of the Central Government's order dated August 17, 1995, regarding the renewal of TISCO's lease over 406 hectares.

Summary:

1. Validity of the Orders of the Central Government dated June 3, 1993, and October 5, 1993:
The Supreme Court upheld the Orissa High Court's decision that the Central Government's orders dated June 3, 1993, and October 5, 1993, were unsustainable as they did not meet the requirement of Section 8(3) of the Act, which mandates recording reasons for the renewal in the interest of mineral development. The orders failed to consider the National Mineral Policy and the Rao Committee Report.

2. Relevance of the Rao Committee Report and the decision in Indian Metals case for renewal of leases u/s 8(3) of the Act:
The Court affirmed that the Rao Committee Report and the decision in the Indian Metals case were relevant for considering the renewal of TISCO's lease. The Rao Report was treated as a decision of the Central Government, and any departure from its recommendations required recorded reasons.

3. Locus standi of prospective applicants in proceedings considering the renewal of TISCO's lease:
The Court agreed with the High Court that prospective applicants had an interest in the proceedings regarding the renewal of TISCO's lease. Their interest was contingent, but they were proper parties entitled to be heard, especially since the Central Government's orders adversely affected their rights.

4. Relevance of the criterion of captive requirement of mining industries and the principle of equitable distribution of mining leases to the concept of mineral development u/s 8(3) of the Act:
The Committee correctly interpreted that the concept of "mineral development" under Section 8(3) includes assessing the captive mining requirement of industries and applying the principle of equitable distribution of mining leases. The National Mineral Policy and the Industrial Policy of Orissa supported this interpretation.

5. Validity of the Central Government's order dated August 17, 1995, regarding the renewal of TISCO's lease over 406 hectares:
The Supreme Court upheld the Central Government's order dated August 17, 1995, which renewed TISCO's lease for 406 hectares. The decision was based on the Committee's comprehensive analysis, which considered technical and policy aspects, ensuring that the renewal served the interest of mineral development and national interest.

Conclusion:
The appeals filed by TISCO and IDCOL were dismissed, affirming the decisions of the High Court and the Committee. The Central Government's order dated August 17, 1995, was justified, and the principles of captive mining and equitable distribution were correctly applied in the context of mineral development.

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