Govt to fast track new Mines Act

Preparing the ground for better infrastructure during the 12th Plan, the government has decided to fast track the new Mines and Minerals Development Bill and give impetus to greater power generation.

These decisions were taken at a review meeting convened by Prime Minister Manmohan Singh yesterday. The agenda of the meet was to take stock of the infrastructure sector’s needs, to meet the growth target of eight per cent. Prior to the meeting, T K A Nair, principal secretary in the Prime Minister’s Office, held discussions with secretaries of nine ministries and departments, including coal, power, mines, petroleum and natural gas, steel and new and renewable energy.

The new law proposes to bring in a profit-sharing regime and bidding of mining rights. The current Mines and Minerals (Development and Regulation) Act, 1957, allows state governments to award concessions for all minerals, except for iron ore, limestone and chrome and strategically important ones like uranium, where the Centre’s prior approval is mandatory.

The 10-member group of ministers which drafted the new MMDR Bill, 2010, has decided to do away with the provisions from which the Centre derives this power. The Bill is awaiting Cabinet’s approval.

In the meeting, it was also noted that during the 11th Plan, the power generation capacity was expected to be around 52,000 Mw, as against the 10th Plan’s 21,000 Mw. This year, the capacity addition is expected to touch a record level of 17,000 Mw. However, the target was to add about 62,000 MW in the 11th plan. The government plans to add over 1 lakh Mw in the 12th Plan.