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Odisha slaps INR 83 billion demand notice on CIL MCL

Coal News - Published on Thu, 22 Mar 2018

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Business Standard reported that the Odisha government has slapped a demand notice of INR 82.97 billion on Mahanadi Coalfields Ltd (MCL), the second largest subsidiary of Coal India Ltd (CIL), for unlawful production of coal in violation of environmental clearance (EC). Though the court order came while disposing of a case relating to illegal mining of iron ore and manganese in Odisha, the state government has decided to expand the scope of the judgement to other minerals like coal, chromite, bauxite and lime stone as the court in general has given a new interpretation to the section 21 (5) of the MMDR Act which governs mining of all major minerals.

In response to the show cause notice from the Odisha government preceding the demand notice, Coal India subsidiary MCL had stated that the ramification of the Supreme Court judgement should not be applicable to them as it pertained to iron ore and manganese leases. Besides, they argued that they being guided by Coal Bearing Areas (Acquisition and Development) Act, 1957, the changes in interpretation of section 21 (5) of MMDR Act should no way affect them.

However, the state government has rejected the MCL plea saying the Coal Bearing Areas (Acquisition and Development) Act is applicable only for acquisition of land for coal excavation, while the mining activity is governed by MMDR Act.

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Posted By : Nanda Koijam on Thu, 22 Mar 2018
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