Illegal mining, iron ore ban to figure in tomorrow's GoM meet

Issues pertaining to illegal mining and ban on iron ore exports are likely to figure in a meeting of a ministerial panel, headed by Finance Minister Pranab Mukherjee, tomorrow on the proposed mining legislation.

"The Group of Ministers will seek to sort out inter -ministerial issues on the proposed mining legislation. A debate over illegal mining and provisions in the new legislation to check the same will be further deliberated upon. Also, issue over exports of iron ore is likely to figure in the meeting," a senior Mines Ministry official told PTI.

Last month, the government had formed a 10-member Group of Ministers (GoM) headed by Mukherjee to debate the proposed legislation--Mines and Minerals Development and Regulation Act, 2010--to govern the sector.

The new legislation will seek to attract domestic as well as foreign investments in the mining sector while making the process of granting mining concessions transparent and expeditious.

Besides Mukherjee, the GoM includes Home Minister P Chidambaram, Steel Minister Virbhadra Singh, Law Minister Veerappa Moily, Mines Minister BK Handique, Commerce Minister Anand Sharma, Tribal Affairs Minister Kantilal Bhuria, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Coal Minister Sriprakash Jaiswal, and Environment Minister Jairam Ramesh.

The Mines Ministry has already sent the proposed bill to the GoM, which will consider many issues, including conservation of minerals, powers of granting mining leases, reservation of mineral-bearing areas for PSUs among others.

"After the GoM's deliberations, the bill will be sent to the Cabinet for its approval and then to Parliament," the official said.

The issue of illegal mining has assumed political propositions with the Opposition in Karnataka-- Congress and JD-S--charging the Reddy brothers, ministers in the BJP government with illegal mining. The Centre has expressed its willingness to provide central assistance, including CBI probe, to curb illegal mining practices in the state.

The Prime Minister's Office, which was scheduled to convene a meeting on the subject on July 20, is now expected to take up the matter next week.

Besides illegal mining, Steel and Mines Ministries have been at loggerheads over the ban on exports of iron ore.

Virbhadra Singh last week said that he will raise the matter of banning iron ore exports and also raising export duty on the mineral in the Group of Ministers. Mines Ministry and the mining industry have always been opposed to the move.