RASHTRIYAB ISPAT NIGAM LIMITED v. State of Andhra Pradesh,
WA/424/2021 · 2025-11-04
Challa Gunaranjan, Dhiraj Singh Thakur
body2025
DailyLaw.ai
[ 2025 DAILYLAW 56647 (AP) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 56647 (AP) · dailylaw.ai ]
Judgment text
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APHC010238872021
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
WRIT APPEAL NO: 424 of 2021 Bench Sr.No:-10 [3552] Rashtriya Ispat Nigam Limited ...Appellant Vs. State of Andhra Pradesh and others ...Respondents ********** Advocate for Appellant : Mr. V. Subrahmanyam Advocates for Respondents : Mrs. S. Pranathi (Spl.GP) Mr. P. Veera Reddy, Sr. Counsel Mr. K. Raji Reddy, Sr. Counsel, appearing for Mr. Venkatram Reddy Mantur
CORAM : THE CHIEF JUSTICE DHIRAJ SINGH THAKUR SRI JUSTICE CHALLA GUNARANJAN DATE : 5th November, 2025 Per Dhiraj Singh Thakur, CJ (Oral) :
The present Writ Appeal, under Clause 15 of the Letters Patent, has been preferred against the judgment and order, dated 14.06.2021, passed in W.P.No.5066 of 2019. 2. Briefly stated, the material facts are as under:
M/s. Ramco Cements Limited has been granted a mining lease for Limestone over an extent of 160 Hectares at Budawada Village in Krishna District for a period of 20 years vide order, dated 30.10.2008. 2 HCJ & CGR, J WA_424_2021
The petitioner, who is the appellant herein i.e., M/s. Rashtriya Ispat Nigam Limited [RINL] was also granted a mining lease for Limestone over an extent of 1295 Hectares in Sy.No.376 of K. Agraharam and Mukteswarapuram Villages in Krishna District vide Government Order, dated 20.02.2002. A representation was made to the Government by M/s. Ramco Cements Limited seeking permission for an access corridor to transport Limestone mineral from their mining lease area to their cement factory through the mining lease area which was being operated by RINL on the ground that there was no other alternate approach for their factory. The Director of Mines and Geology submitted a report wherein it was stated that the mining lease area held by M/s. Ramco Cements Limited was surrounded by the mining lease area held by RINL which was a subsidiary of Government of India and further that there was no road facility to access and transport the Limestone mineral to their factory and that M/s. Ramco Cements Limited also proposed to give compensation of Rs.5.00 Lakhs per annum for use of the access area apart from undertaking to maintain the proposed road.
The proposal of M/s. Ramco Cements Limited was resisted by RINL inter alia on the ground that the proposed corridor ran parallel to the township which had been set up by RINL and which was situate at a distance of 250 Meters only and that granting a right of way was likely to cause noise and dust pollution in the mines township and that the workers union of RINL had already expressed their resentment in that regard. 3 HCJ & CGR, J WA_424_2021
The Government, upon considering the matter, decided to issue directives to RINL to allow M/s. Ramco Cements Limited an access corridor to an extent of 1.80 Hectares which was about 600 Meters in length and 30 Meters in width through the mining lease area held by RINL with a view to permit them to transport Limestone from their mining lease area to their cement factory. Apart from this, the compensation amount of Rs.5.00 Lakhs per annum was also directed to be paid to RINL with further liberty to the parties to negotiate further rates. The Government issued the orders by invoking Rule 12(s) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, which reads as under:
“the lessee shall allow reasonable facilities of access to any existing and future holders of Government licences or leases over any land which is comprised in or adjoins or is reached by the land held by the lessee:
Provided that no substantial hindrance or interference shall be caused by such holders of licences or leases to the operations of the lessee and fair compensation (as may be mutually agreed upon or in the event of disagreement as may be decided by the State Government) shall be paid by them to the lessee for any loss or damage sustained by the lessee by reason of the exercise of this liberty.”
In the light of the aforementioned Rule 12(s), the Government directed M/s. Ramco Cements Limited to observe the following:
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i) Lay the access corridor of 600 Mts length and 30 Mts width on their own cost and maintain the said road properly by developing greenery on both sides of the road duly observing the pollution norms. ii) Move to mechanization by establishing conveyor belt system for transportation of limestone as early as possible. iii) Pay the annual compensation amount regularly.
The orders passed by the Government, dated 23.05.2018 and 23.01.2019, were challenged by the appellant herein before the learned single Judge who dismissed the writ petition on the ground that the impugned orders were in conformity with Rule 12(s) of the Rules of 2016 which gave discretion to the authorities to pass the orders impugned and further held that permitting an access corridor to the extent of 1.80 Hectares of land to M/s. Ramco Cements Limited would not affect in a material way the petitioner i.e., RINL which had more than 295 Hectares of open land. It was against this judgment and order that the instant writ appeal was preferred in which by virtue of the order, dated 10.08.2021, this Court directed the suspension of the orders impugned. 3. I.A.No.1 of 2025 has been filed seeking vacation/modification of the said interim order which has been extended from time to time. 4. The difficulty which is expressed by M/s. Ramco Cements Limited which seeks vacation of the interim order is that the road over 1.80 Hectares
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of land measuring 600 Meters in length and 30 Meters wide had since been constructed and laid. It is stated that there is a lot of difficulty faced by M/s. Ramco Cements Limited in transporting their mined mineral, which is Limestone, from their leased mining area to their plant through the route currently being adopted by M/s. Ramco Cements Limited, which is approximately 30 KMs which can be cut short and reduced to a distance of only 6 KMs, in case the applicant is permitted to use the road in question.
Insofar as the existence of the township which is stated to be situate at a distance of approximately 250 Meters from the access road and the possibility of the residents of the township facing noise pollution, dust pollution etc., is concerned, it is stated that not many families may be staying in the said township inasmuch as there are no substantial mining operations being conducted by RINL in the area which was otherwise leased out or in the area which was otherwise licensed by Mines and Minerals Department for mining operations and, therefore, the staff which may be residing in the township may be only the watch and ward staff with a handful of families. It is stated that adequate steps would be taken to provide greenery on both sides of the road to eliminate any dust or sound pollution from reaching the workers’ habitation which, in any case, is stated to be approximately 250 Meters away from the road. Even otherwise, it was suggested that the transportation of the Limestone would be undertaken by taking adequate
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measures by properly covering the minerals so that there is no dust pollution caused on account of such a transportation. It is fairly stated by Mr. P. Veera Reddy, learned Senior Counsel appearing for M/s. Ramco Cements Limited, that the Pollution Control Department could also be asked to maintain a strict vigil on the activity of transportation of the minerals from the mining area through the access road to their factory premises and any guidelines which are otherwise supposed to be followed either under the pollution control laws or the guidelines as are laid in the order impugned issued by the Government to be strictly followed. 5. We have heard the learned counsel for the parties. 6.
There is no doubt that the Government did have the power in terms of Rule 12(s) of the Rules of 2016 which envisages that a lessee shall provide reasonable facilities of access to any existing or future holders of government licenses or leases. 7. In the instant case, it can be seen that it was the Government who had leased out initially an area measuring approximately 2,195 Hectares to RINL for mining purposes which was subsequently reduced to 1,295 Hectares. The 1,295 Hectares include 395 Hectares which were acquired by the Government of India for permitting RINL to conduct its mining operations and to have other facilities. Over this leased land, the RINL, according to the statement made by learned counsel for the appellant, is exploiting approximately 900 Hectares for mining limestone. 7 HCJ & CGR, J WA_424_2021
8. It is stated by learned counsel for the appellant that approximately 210 residential quarters have been constructed to provide adequate housing to the employees of the RINL and it is stated that approximately 200 employees reside in them along with their families. It is not, however, denied that the houses are situated approximately 250 Meters away from the road corridor which has been constructed and laid down by M/s. Ramco Cements Limited. 9. Mr. P. Veera Reddy, learned Senior Counsel appearing for M/s. Ramco Cements Limited, has produced before us a certificate issued by the Panchayat Secretary of the concerned Panchayat within whose jurisdiction the land is situate, to say that there are approximately 110 quarters for the employees of the RINL in which only 40 employees are staying. There is, thus, some contradiction in number of quarters as also the number of employees who are actually residing in the said quarters. 10. All this was gone into for purposes of determining the degree of inconvenience which may be caused by the use of the access corridor by M/s. Ramco Cements Limited when heavy trucks would be plied over the said corridor and whether it would cause inconvenience to the residents living in the residential quarters. However, we cannot lose sight of the fact that the corridor which is proposed to be used by M/s. Ramco Cements Limited is situate approximately at a distance of 250 Meters from the colony set up by the RINL.
The extent of pollution that may be caused on account of the
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vehicles of M/s. Ramco Cements Limited using this corridor could be checked and controlled if adequate steps are taken while transporting the mined mineral from the said mining area, as was even otherwise suggested by Mr. P. Veera Reddy, learned Senior Counsel, appearing for M/s. Ramco Cements Limited. 11. While it may also be true that M/s. Ramco Cements Limited does have the road which is currently being used to transport their mined minerals from the mining area which is encircled by the land which has been leased out to RINL for mining purposes, yet the said route is circuitous and is stated to be approximately 30 Kms in length. 12. The interests of the State are also directly connected to the efficiency with which M/s. Ramco Cements Limited mines its minerals, inasmuch as it is the State which collects the royalty from M/s. Ramco Cements Limited or for that matter, the RINL. If there is ease of transportation, it would reduce considerably the time taken for transporting these mined minerals and therefore it was, in that context, perhaps Rule 12(s) had been framed, with a view to ensure that the interests of the State as also the mining companies would not be affected on account of operations being conducted in a particular area by a particular mining company. 13. Be that as it may, we do not see any reason to take a view different from the one which was taken by the learned single Judge in upholding the orders impugned, dated 23.05.2018 and 23.01.2019, passed by
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the Government, whereby an access corridor was permitted in favour of M/s. Ramco Cements Limited upon payment of compensation to the appellant herein at the rate of Rs.5.00 Lakhs per annum, with liberty to further negotiate the rates between the parties. 14.
14. We, however, direct the Pollution Control Department to keep a strict vigil and conduct occasional checks on the transportation with a view to ensure that no pollution is caused on account of the transportation of minerals either by M/s. Ramco Cements Limited or for that matter the RINL. 15. M/s. Ramco Cements Limited shall also ensure that adequate steps are taken during the transportation of mined minerals through the corridor so that the residents of the colony are not made to suffer on account of dust or any other pollution which might otherwise be caused on account of such a transportation activity. 16. This Writ Appeal is, accordingly, disposed of. No costs. Consequently, connected miscellaneous applications pending, if any, shall stand closed. DHIRAJ SINGH THAKUR, CJ
CHALLA GUNARANJAN, J Vjl/kbs
10 HCJ & CGR, J WA_424_2021
05 HON’BLE MR. JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE & HON’BLE MR. JUSTICE CHALLA GUNARANJAN
W.A.No.424 of 2021
Dt: 05.11.2025
Vjl/kbs