Govt asks states to initiate local benefit sharing from minerals

They are to establish the local District Mineral Foundations quickly, as per the provisions of the Mines and Minerals (Development and Regulation) Amendment Act (MMDRA), 2015

The Union government has asked states to initiate local-benefit sharing from non-coal minerals by establishing the local District Mineral Foundations (DMF) quickly, as per the provisions of the Mines and Minerals (Development and Regulation) Amendment Act (MMDRA), 2015.

In a meeting, chaired by the secretary of Mines ministry, state governments were urged to decide on the composition and functions of DMFs to make them functional as soon as possible - benefiting persons and areas affected by mining operations.

The meeting was called for consultations on the recently proposed Draft Mineral (Auction) Rules, 2015, with states to augment mineral production and auction new non-coal mine blocks. The consultations were also held with states on the draft National Mineral Exploration Trust Rules, 2015 and the Mineral (Mining by Government Company) Rules, 2015. Some other issues discussed at the meeting related to starting production of minerals from existing mines whose second and subsequent leases have been extended to maintain continuity in production. The government also asked the states to create an environment for ease of doing business to enhance the production of minerals in order to contribute towards growth of the industrial production and GDP growth in the country.

The Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2015 was notified on March 27 this year, in order to amend the old MMDR Act, 1957. The Amendment removes discretion in the grant of mineral concessions. Henceforth, all mineral concessions will be granted by the respective state governments only through auctions. The tenure of mineral concessions has been increased to 50 years compared to the earlier provision of 30 years.