Ministry raps UP government for allowing arbitrary mining lease allotment

NEW DELHI: The mines ministry has reprimanded Uttar Pradesh for its decision to allow arbitrary allotment instead of a transparent auction for mining leases and contracts for some minerals such as gypsum, mica, quartz and sand, and is considering issuing a directive to overrule the state action.
Mines Secretary Balvinder Kumar said the Centre has taken cognizance of the matter and has given a stern warning to Uttar Pradesh to amend the minor mineral concession rules. “The Centre may issue a directive to Uttar Pradesh if the state does not change the concession rules. MMDR (Mines and Minerals Development and Regulation Amendment Act) empowers Centre to do so,” he told ET.

Last June, Uttar Pradesh amended its minor mineral concession rules as per which applications will be called by the state for awarding mining contracts for minerals such as gypsum, mica, quartz and sand. Government officials say that the state’s action is contrary to the spirit of the Supreme Court’s orders against arbitrary allotment of mines.



The state has been mired in controversies surrounding illegal mining. On September 9, Allahabad High Court rejected its plea seeking withdrawal of a previous order directing a CBI enquiry into allegations of illegal mining across Uttar Pradesh. Following this, Uttar Pradesh Chief Minister Akhilesh Yadav sacked mines minister Gayatri Prasad Prajapati for alleged nexus with the mining mafia. Prajapati was, however, re-inducted in the state cabinet on Monday. As per new rules, Uttar Pradesh will allot mining contracts based on assessment of applicant’s capabilities in some cases and on first-come-first-serve basis in other cases. New rules do not provide for auctioning the blocks as mandated by the MMDR Act.

Kumar has written to Uttar Pradesh Chief Secretary Deepak Singhal seeking modification to the process of arbitrarily allotting mining contracts.

“Recently, the state has amended the Uttar Pradesh Minor Mineral (Concession) Rules, 1963, wherein it is observed that state government has more or less reiterated the old method of grant of mineral concessions. However, this falls short of a transparent and non-discriminatory method of grant of minerals concession, which is the need of the hour. In this day, when the Hon’ble Supreme Court has observed upholding for such a method of grant of mineral concessions as suction, it would be improper to say the least if we still continue with age old method of grant of mineral concessions,” Kumar said in the letter.

ET View

Shut it down
The Uttar Pradesh government’s decision to allot mining contracts on a first-come firstserve basis is a violation of the Supreme Court’s orders and the central government advisory. This system promotes a lack of transparency and corruption. The court should take suo motu cognisance of the violation of its order by the state. If Akhilesh Yadav is truly invested in running a clean administration, he must cancel the allocations his government made since the Supreme Court passed its order.