Mines Ministry to reconsider all mineral concession proposals

State governments have to clear mining leases within a period of three to six months under Mineral Concession Rule 1960

The Ministry of Mines has clarified that all pending mineral concession proposals including the proposals under process will be dealt afresh. This will be done prior to the issue of fresh guidelines for clearance of mineral concession proposals, the ministry said.

According to officials, state governments have been directed to submit these proposals for the clearance of the central government after vetting these proposals under the new checklist.

Status of such proposals and authenticity of prior approval by the central government will have to be cross checked in tally with the new guidelines and only then submitted to the centre.

The Ministry one month back issued fresh guidelines for giving mineral concession. Under these guidelines, the state government has to clear the mining leases within a period of three to six months under the Mineral Concession Rule 1960.

The fresh guidelines for submission of Mineral Concession Proposals have been issued under section 5(1) of Mines and Minerals Development and Regulation (MMDR) Act, 1957 following a series of Supreme Court judgements on the mining industry and in super cession of all its previous instructions and guidelines.

These guidelines will be accepted for all minerals except for minor minerals like building stones, gravel, ordinary clay, and ordinary sand other than sand used for prescribed purposes.

As per the new guidelines, the state will have to take prior permission or approval from the Centre for grant of mining leases and is supposed to ensure that the mining lease is granted in the interest of public.

“These Supreme Court pronouncements require the state action to be unbiased, without favoritism or nepotism, and to be in pursuit of promotion of healthy competition and equitable treatment; and that it should conform to the norms which are rational, informed with reasons and guided by public interest,” the guidelines read.

“It has also been held by the Apex court that if a policy or law is patently unfair to the extent that it falls foul of the fairness requirement of Article 14 of the Constitution, the Court would not hesitate in striking it down,” the guidelines further stipulate.

The Union Mines Ministry has said that prospecting licenses or mining licenses have to be signed within a period of three or six months from the date of the communication of the order for grant of lease.

After prior approval of the central government is obtained for grant of a mining lease, the state governments should issue grant order/Letter of Intent to the applicant, without delay, preferably within one month of receipt of prior Centre’s approval.

The objective while there should not be delay in issuing mineral concession licenses and yet licenses should not be granted in violation of fair play and transparency of process, said officials.