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2012 (4) TMI 779 - SC - Indian Laws

Issues involved: Acceptance of recommendations from the Report of Central Empowered Committee, setting production ceilings for iron ore, approval of guidelines for R&R Plans, utilization of iron ore for local steel plants, continuation of e-auction system for iron ore sale, payment mechanism for e-auction sales, responsibilities of the Monitoring Committee, continuation of mining operations for M/s NMDC, and implementation of Reclamation and Rehabilitation Plans.

Acceptance of Recommendations: The Supreme Court accepted the recommendations from the Report of Central Empowered Committee, including fixing boundaries of mining leases, setting production ceilings for iron ore in different districts, approving guidelines for R&R Plans, utilizing iron ore for local steel plants, continuing e-auction system for iron ore sale, and specifying the responsibilities of the Monitoring Committee.

Utilization of Iron Ore: The judgment directed that the iron ore available should be used to meet the requirements of steel plants in Karnataka and neighboring states, with exports permitted only for surplus material not purchased by local industries at or above the average price realized by the Monitoring Committee. Additionally, exports of processed iron ore from beneficiation plants were not allowed.

E-Auction System: The sale of iron ore was mandated to continue through e-auction, overseen by the Monitoring Committee. The quantity, grade, lot size, base price, and delivery period for e-auction were to be determined by lease holders, with 90% of the sale price paid directly to them and the remaining 10% deposited with the Monitoring Committee.

Responsibilities of Monitoring Committee: The Monitoring Committee was tasked with monitoring R&R Plan implementation, ensuring compliance with environmental and statutory approvals, verifying adherence to approved Mining Plans and production ceilings, maintaining safety zones, and enforcing applicable conditions. Any lease found violating conditions could face closure or termination.

Continuation of Mining Operations: Mining operations for M/s NMDC were permitted to continue, subject to the payment of penalty/compensation as applicable for leases falling in "Category-B." The existing Members of the Monitoring Committee were to continue for the next two years.

Implementation of R&R Plans: The judgment mandated the immediate start of Reclamation and Rehabilitation Plans for all categories, with supervision by the Central Empowered Committee. The implementation, monitoring, and preparation of R&R Plans were to be carried out under their oversight.

 

 

 

 

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