RAKSHANA STEELS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) There are deposits of considerable volume of iron ore, in an area of about 1,50,000 acres spread over different villages of Bayyaram, Garla and Nelakondapally Mandals of Khammam District and the neighbouring Mandal of Gudur in Warangal District. The land is part of scheduled area. According to Section 11 (5) of the Mines and Minerals (Development and Regulation) Act, 1957 (for short 'the Act'), a) prospecting licence or mining lease to exploit any minerals, within the scheduled area can be granted only in favour of a) Scheduled Tribes; b) societies formed for scheduled tribes, or c) the State-owned Corporations; undertaking such activity. Approval of the Central Government is necessary for this. In the year 2006, the Government of Andhra Pradesh, the 2nd respondent herein, submitted a proposal to the Government of India, the 1st respondent, to accord approval for reserving the area in favour of the A.P. Mineral Development Corporation Limited, the 4th respondent. The same was pending.

(2.) The 2nd respondent issued memo dated 03-01-2009, according permission to the A.P. Mineral Development Corporation Limited [for short 'the 4th respondent'], a State-owned entity, to invite 'Expression of Interest' from eligible applicants for setting up of Integrated Steel Plant, including beneficiation, to process the deposits of iron ore, available in the four Mandals, referred to above, under a joint venture. Accordingly, the 4th respondent published a notification on 17-01-2009, inviting the applications. M/s. Rakshana Steels Limited, the petitioner in W.P. Nos. 21956, 31570 of 2010 and 22525 of 2012 came forward with a proposal. Another applicant was M/s. Pioneer Torsteels Mills Private Limited.

(3.) The 2nd respondent issued G.O.Ms. No. 28, industrial and Commerce (M.III) Department dated 31-01-2009, constituting a Committee, comprising of Secretary to Government, Industries and Commerce Department; Finance Secretary; Vice-Chairman and Managing Director, A.P. Industrial Infrastructure Corporation Limited (APIIC); Director of Mines and Geology, and Vice-Chairman and Managing Director of the 4th respondent to process the applications. It appears that the committee examined the matter and submitted a report, recommending the acceptance of the application of M/s. Rakshana Steels Limited, (for short 'the petitioner'). The 2nd respondent examined that report and issued G.O.Ms. No. 69, Industries and Commerce Department dated 24-02-2009, notifying its acceptance and approval for the proposal. The relevant conditions were incorporated.