The EMIL has deposited the penalty Rs 1,717 crore demanded by the state government following which the spreme court has permitted it to restart mining activities.
The state government has stopped mining operation in three of the mines of EMIL after the deadline for the payment of the penality was over on December 31, 2017.
The supreme court has allowed the EMIL to operate two mines and take consent of the state government to operate the third one. A division bench of justices Madan B. Lokur and Deepak Gupta Thursday permitted EMIL for restarting Jilling and Koira mines and take government consent for Kasia mines for operation.
The top court by its August 2, 2017, order had directed the Odisha government to recover the cost of excess production from the defaulting miners. The apex court called for the recovery of 100 per cent compensation from the defaulting companies compared to 30 per cent as was recommended by the court appointed central empowered committee (CEC). The top court by its August 2, 2017 order had asked the mining companies involved in violation of forest and environmental clearances to deposit by December 31, 2017 the fine to be determined by the state government.
Following the apex court’s order, the state government had calculated the compensation at Rs 17,000 crore and served notices to the defaulting lessees. By the deadline only Rs 10,000 crore was deposited. However, when the court in January directed the state government to collect the compensation amount with 12% interest and take coercive course to realise the amount, mining companies have started complying to the court order.