Rule change to expand minor mineral list soon

31 newly added minerals will be allotted through auction

The state government will soon amend Odisha Minor Minerals Rules (OMMR) to include 31 minerals whose status were recently downgraded from major to minor minerals by the Union ministry of mines following the promulgation of the ordinance amending Mine Minerals Development and Regulation (MMDR) Act, 1957.

As is the case with minor minerals currently under the state authority, the lease for the newly enlisted minor minerals such as dolomite, quartzite, beach sand, china clay, fire clay, laterite and pyrophyllite will be allotted to lessees through the auction process.

As per the erstwhile MMDR Act, 1957, the Centre was empowered to form policies for major minerals such as iron ore, coal, bauxite, manganese etc while the state governments was vested with the power to regulate minor minerals.

The Centre last month made the changes in the category, giving state governments free hand to decide about the regulations and process of lease grant for the minor minerals.

The state government said, it is in the process of changing the Odisha Minor Minerals Rules for conduct of auction for newly added minor minerals and also for grant of lease for decorative stone and granite, which was being given on first come first serve basis.

"We have started the process to amend the existing OMMR. It will be completed within one month," said a government official with direct knowledge of the matter.

Sources said, the state government will include the option to auction leases of some newly included minor minerals, in line with Centre's policy to auction coal and iron ore mines.

Unlike major minerals, the state governments can decide and fix rules for lease grant and excavation of the minor minerals. It has even the power to impose cess or special duty on minor minerals for contribution to environment fund or community development fund.

Out of 31 minerals inserted in the list of minor minerals, there are about 10 minerals which are found in Odisha.

According to the estimates of Odisha government, about 18 per cent of India's dolomite is found in the state. It is used in sponge iron making. Similarly, fire clay, having 25.6 per cent deposits finds its usage in plastic and non-plastic industries while china clay, with 31.5 per cent India's reserve, is used in rubber, textiles and ceramic industries.