Centre reaches out to states to pass mining law
Amendment is also proposed to extend the mining leases deemed to be extended from the date of their last renewal to March 31, 2030
 "Centre reaches out to states to pass mining law")
The Bharatiya Janata Party (BJP)-led government at the Centre has reached out to states in a bid to pass a legislation by replacing the Mines and Minerals (Development and Regulation) (MMDR) Amendment Ordinance, 2015 in the Budget session.
The officials of the Union ministry of mines have been in constant touch with state governments to seek feedback on the ordinance, which it claims is a revolutionary step for the revival of the mining sector in the country. The Centre’s initiative was confirmed by Chhattisgarh Chief Minister Raman Singh and also by a senior official of the Maharashtra government, while speaking to the Business Standard.
Major amendments proposed in the ordinance pertain to removal of discretion, replacing it by auction to be sole method of allotment, establishment of District Mineral Foundation (DMF) in the districts affected by mining-related activities, setting up a National Mineral Exploration Trust to have a dedicated fund for encouraging exploration in the country. Further, the amendment is also proposed to extend the mining leases deemed to be extended from the date of their last renewal to March 31, 2030 and stronger provisions for checking illegal mining.
Chhattisgarh wanted that the limit of DMF contribution be increased from one-third of the royalty payable to 100 per cent. On the other hand, mineral-rich Jharkhand said the establishment of DMF was essential but pleaded that the Centre needs to provide help to the state to improve the condition of people associated with mining along with the growth of the mineral sector.
Uttarakhand made a strong case for creation of a separate fund for Himalayan states with regard to enhancing mining.
On auction for grant of mineral concessions, states appealed to the Centre that auction should be done without delay by quickly putting the framework in place after taking suggestion from state governments in this regard. Maharashtra and Rajasthan suggested that a model template for auction should be prepared by the Central government for the purpose of guidance of the states and uniformity across the states.
Odisha insisted the lease period provision of 50 years should be reverted to 30 years, with renewal of 20 years for the purpose of ensuring the renewal only being done in cases where the lease conditions are being complied with properly and not automatically, as would happen in the case of lease period of 50 years as per the ordinance. Karnataka stressed the need for making interim arrangements for grant of mining concessions till the auction of the mineral concessions, else the illegal mining will proliferate due to existing demand and reserve availability.
Officials attached to the Union ministry observed that auction would bring in greater transparency and higher revenue for the states. Besides, simplification and transferability will attract private investment and classification of minerals will lead to their scientific exploration and delays will be reduced by providing more power to the states.
Madhya Pradesh suggested that transfer of mining leases should be allowed for captive use along with the acquisition of the primary industry. Uttar Pradesh stressed the need for giving due consideration to the interest of small lease holders of minor minerals and also the interest of farmers.
The officials of the Union ministry of mines have been in constant touch with state governments to seek feedback on the ordinance, which it claims is a revolutionary step for the revival of the mining sector in the country. The Centre’s initiative was confirmed by Chhattisgarh Chief Minister Raman Singh and also by a senior official of the Maharashtra government, while speaking to the Business Standard.
Major amendments proposed in the ordinance pertain to removal of discretion, replacing it by auction to be sole method of allotment, establishment of District Mineral Foundation (DMF) in the districts affected by mining-related activities, setting up a National Mineral Exploration Trust to have a dedicated fund for encouraging exploration in the country. Further, the amendment is also proposed to extend the mining leases deemed to be extended from the date of their last renewal to March 31, 2030 and stronger provisions for checking illegal mining.
Chhattisgarh wanted that the limit of DMF contribution be increased from one-third of the royalty payable to 100 per cent. On the other hand, mineral-rich Jharkhand said the establishment of DMF was essential but pleaded that the Centre needs to provide help to the state to improve the condition of people associated with mining along with the growth of the mineral sector.
Uttarakhand made a strong case for creation of a separate fund for Himalayan states with regard to enhancing mining.
On auction for grant of mineral concessions, states appealed to the Centre that auction should be done without delay by quickly putting the framework in place after taking suggestion from state governments in this regard. Maharashtra and Rajasthan suggested that a model template for auction should be prepared by the Central government for the purpose of guidance of the states and uniformity across the states.
Odisha insisted the lease period provision of 50 years should be reverted to 30 years, with renewal of 20 years for the purpose of ensuring the renewal only being done in cases where the lease conditions are being complied with properly and not automatically, as would happen in the case of lease period of 50 years as per the ordinance. Karnataka stressed the need for making interim arrangements for grant of mining concessions till the auction of the mineral concessions, else the illegal mining will proliferate due to existing demand and reserve availability.
Officials attached to the Union ministry observed that auction would bring in greater transparency and higher revenue for the states. Besides, simplification and transferability will attract private investment and classification of minerals will lead to their scientific exploration and delays will be reduced by providing more power to the states.
Madhya Pradesh suggested that transfer of mining leases should be allowed for captive use along with the acquisition of the primary industry. Uttar Pradesh stressed the need for giving due consideration to the interest of small lease holders of minor minerals and also the interest of farmers.