NEW DELHI — The Supreme Court has granted partial relief to the Odisha government in a mining case, modifying an Orissa High Court order that had directed the state to ensure optimum use of mineral resources through the state-owned National Mineral Development Corporation (NMDC) when leaseholders failed to extract the quantities prescribed in their leases.

Source: Sambad English

A three-judge bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana heard the Odisha government's petition and partially allowed it, the report said.

Source: Sambad English

What the High Court had ordered

In its order of January 29, 2026, the Orissa High Court had directed the state government to invoke Rule 12(1)(ee) of the Mineral Concession Rules, 2016 to ensure optimum utilisation of mineral resources through NMDC if leaseholders did not extract the prescribed quantities. On February 10, the High Court further directed that its order be implemented within three months.

Source: Adani News

What the Supreme Court changed

During the hearing it emerged that the provision under Rule 12(1)(ee) was not mandatory. Taking that into account, the Supreme Court modified the High Court's directions and said the state government should make efforts to ensure the optimum utilisation of mines under the provision, in accordance with law.

The order gives the state partial relief but does not remove the underlying duty: Odisha must still work towards the best use of its mineral resources, now framed as an effort under the legal provision rather than a mandatory route through NMDC. Reports of the order do not name the specific mines or leaseholders involved, or the size of any production shortfall.