Rajya Sabha passes Mines and Minerals Bill

The Bill allows auction of mines that supply minerals like iron ore and bauxite

The Rajya Sabha today passed the Mines and Minerals Bill, which facilitates auction of mines that supply minerals like iron ore and bauxite, with all parties, barring Congress and the Left, supporting it. 

JD(U) members walked out before the voting saying they did not want to be part of the procedure. 

When the Bill went for voting, 117 members voted in its favour and 69 were against it.

The passage of the Bill was crucial for Modi because the ruling Bharatiya Janata Party (BJP) lacks a majority in the second chamber.

The Bill will now be taken up by the Lok Sabha, where BJP enjoys an overwhelming majority. 

The House earlier saw a lot of discussion on a motion moved by P Rajeeve of CPI(M), which sought the Bill to be resent to the Select Committee as it had not taken the views of all stakeholders including state governments. This amendment was voted out after a division, with parties like TMC, NCP, SP, BSP, BJD, AIADMK, DMK and JMM, besides allies Shiv Sena and SAD supporting the government. 
 

The mining sector has been mired in controversy over the illegal allocation of resources, causing a near standstill in granting permits to open new mines for firms including South Korean steel giant POSCO.

India was once the world's third-largest exporter of iron ore but is importing heavily now due to court action on illegal mining. The apex court has eased some of the curbs, but state bureaucrats have dithered over renewing mining licenses, fearing charges of corruption.

The government hopes auctions will reduce the risk of wrongdoing, helping to put the mining industry back on track. But it is unlikely to lead to a sudden surge in iron ore output at a time when there is a global glut and prices have crashed.