Naveen to pitch for value addition clause in MMDR Bill

The Orissa government will raise the demand for the incorporation of a clause for value addition of minerals within the state in the proposed amendment to the Mines and Minerals (Development and Regulation) Act, 1957. The new MMDR Bill-2010 is likely to be tabled in the winter session of the Parliament.

The demand for the value addition clause will be made by the state Chief Minister Naveen Patnaik during his interaction with the Union finance minister Pranab Mukherjee on Monday. Mukherjee heads the Empowered Group of Ministers that is giving the final shape to the MMDR Bill.

"I am going to meet the Union finance minister Pranab Mukherjee on Monday wherein I will place the demand for including a clause on value addition in the MMDR Bill. The value addition of minerals needs to be done within the state bearing the minerals”, Patnaik told reporters here.

He hailed the move to share 26 per cent of the profits of the mining companies with the locals.

Earlier, the state government urged the Government of India to put in place a monitoring mechanism to ensure the effective implementation of the changes proposed in the MMDR Act, 1957. The state had argued that the monitoring mechanism would ensure that the measures are implemented effectively and the benefits of mining activities percolate to the affected people.

It has been decided to set up an independent regulator called National Mining Regulatory Authority (NMRA) through an ordinance under the existing MMDR Act. This ordinance is likely to be issued within a month.

The independent regulator will have the powers to investigate and prosecute miners involved in illegal mining.

The regulator is being set up in the wake of alleged increase in illegal mining activities in different states including Orissa. Orissa has hailed the move to set up an independent regulator.