Petition challenges concessions given to mining giants by Chhattisgarh government
July has been a bitter month for the mining tycoons of the country. In the first week, the CBI pulled up JSPL (Jindal Steel & Power Ltd.) chief Naveen Jindal, who allegedly misrepresented facts in the coal blocks allocation scam, while the Dongria Kondhs, a primitive hill tribe, came together to obstruct a mega project of Vedanta Alumina in southern Orissa.
Towards the end of the month, the Chhattisgarh High Court issued notices to two mining giants — Tata and Essar Steel — along with several government departments responding to a seven-year-old public interest litigation (PIL) petition, which questioned huge “concessions” given to the mining majors by the State government. Both Tata and Essar Steel refused to comment on the notices.
A memorandum of understanding (MoU) to set up two steel plants in south Chhattisgarh was finalised in 2005. Soon after, the State government allotted 2,500 hectares of iron ore bearing land to Tata Steel in Bailadila hills, for a 5.5 million tonnes plant and another set of seven iron ore bearing hills for 3.2 million tonne-Dantewada plant of Essar.
Nearly a 1,000-page document, first filed in 2006 by activist-lawyer Sudiep Shrivastava, illustrates the violation of several laws to allot iron ore mines to Tata and Essar. One of the main objections was about the violation of the Mines and Minerals Act, 1957.
According to the Act, the State government cannot commit particular mines in advance. However, the MoU said, upon receiving the application, the government “would immediately” recommend “allotment of mining lease in favour of Tata Steel in Bailadila” and “Row Ghat deposit.” In fact, the deposits were not readily available as those were held by the Chhattisgarh Mining Development Corporation (CMDC). Soon after signing the MoU, the government had taken away the mines from the CMDC and awarded them to Tata Steel.
Similarly, when the MoU was signed with Essar, separate deposits were not available with the government but with the National Mineral Development Corporation (NMDC). In June, 2006, the government terminated the mining lease with the NMDC to allot mines to Essar. Besides challenging such arbitrary decisions, the PIL petition objected to the government’s “unconditional undertaking” to facilitate supply of other costly minerals like lime stone and dolomite in violation of the 1957 Act.
Secondly, the land acquired for the plant in a Scheduled Area has been allotted in complete violation of the Panchayat (Extension to Scheduled Areas) Act , without consulting “respective gram sabhas.”
Thirdly, the State and the Central governments developed an elaborate plan to link the mines of south Bastar to production units and markets by constructing a railway network, connecting Dalli Rajhara, Rowghat and Jagdalpur. However, the cost of connecting “the raw material with the market” will be borne by the taxpayer. “Shockingly none of the private parties (Tata and Essar) were asked to contribute any money for construction of this crucial rail link…the SAIL and the NMDC, both PSU’s, would have to invest money” to ramp up profit of their rivals, the PIL said.
The court rejected the petition in 2006, observing that the apprehensions of the petitioner were “premature.” Mr. Shrivastava then moved the Supreme Court. In January this year, the apex court asked him to raise the issues again before the High Court. Finally, the petition was admitted and notices were issued.
- Petition alleges violation of several laws to allot iron ore mines to Tata and Essar
- Land allotted for plants in complete violation of PESA
Hillele 