New Mines Bill to be tabled in ongoing Winter session

The Mines and Minerals (Development and Regulation) Bill, 2011, is likely to be tabled in the ongoing Winter session of Parliament at the earliest, Lok Sabha was informed today.

The Bill, which was approved by the Cabinet on September 30 provides for coal miners to share 26% of their net profits with the people affected by the projects, while the burden on the non-coal miners will be amount equivalent to royalty.

"The draft Bill is proposed to be introduced in the Winter session of Parliament at the earliest. The draft Bill would enable developing the country's mining sector to its full potential for national economic growth," Mines Minister Dinsha Patel told the Lower House in a written reply.

It provides for a simple and transparent mechanism for grant of mineral lease or prospecting licence through competitive bidding in the areas of known mineralisation, he said.

Where mineralisation is not known it would be on the basis of "first-in-time", he said.

"It empowers the state governments to cancel the existing concessions or debar a person from obtaining concession in future for preventing the illegal and irregular mining," Patel said.

It provides for establishment of a National Mining Regulatory Authority, Patel said, adding that the Authority will "also conduct investigation and launch prosecution in cases of large scale illegal mining."

Despite an outrage against illegal mining in Karnataka and Goa, the menace remains largely unchecked. As many as 82,000 cases were reported in 2010 and about 25,000 cases in first three months of this year, according to official data.

The Mines and Minerals (Development and Regulation) Bill, 2011, will replace the 54-year-old legislation governing the sector.