UCCI suggests changes in new MMDR Bill

The Utkal Chamber of Commerce and Industry (UCCI), an apex body of industry representatives in the state, has suggested some changes in the Mines and Minerals (Development and Regulation) Bill, 2011 to make it more implementable. This bill had recently got the nod of the Central cabinet.

In a memorandum to the Ministry of Mines, Government of India and State steel and mines department, UCCI said, the provision in the new bill to impose duty on royalty by the state governments, apart from the duty already collected by the Centre, amounts to duplication of the tax burden on the lessee. So without levying any new duty on minerals, the duty collected by the Central government should be apportioned to the state governments.

UCCI pointed out that at the time of renewal of lease, the government should extend the Mining Lease (ML) for a period of 30 years instead of 20 years at present.

Similarly, it felt the state should  be empowered to sanction renewal /extension of ML in case of major minerals without seeking prior approval of the Central government, as the approval from the Centre have already been secured at the time of grant of lease.

The industry body also opposed the proposal of granting mineral concession for coal through bidding process. Stating that such an arrangement will create disparity between a government company and a private entrepreneur, it said, no line should be drawn between private and public investors as in a liberalized economy private investors play a greater role in the economic development of the country.

UCCI suggested that no ML should be transferred without evaluation of financial bid received from the intending applicants within a period of one month from the date of filing application of transfer and the ML should not be transferred by way of assignment, subletting, mortgage, contract without permission of the state government.

Opposing the sec 43(7) to (11) of the bill the industry association said, the manner in which the monetary and other benefits are proposed to be provided to the affected families will make the mining operation cost prohibitive.

It disputed the proposal in the bill to set up National Mining Regulatory Authority (NMRA) in respect of major mineral. The formation of the regulatory authority in similar manner as Telecom Regulatory Authority of India (TRAI), Central Electricity Regulatory Commission (CERC), Central Administrative Tribunal (CAT), Mines tribunal, Real Estate Regulatory Authority will create one more tire of governance and will also cost the exchequer.

In the memoranda, UCCI mentioned that the new bill is more complicated than MM(DR) Act 1957 which has more clarity.