Centre asks mineral-rich states to expedite mining lease disposal

Asks setting up of state-level committees to thoroughly vet such cases before forwarding same to Centre

mine
Press Trust of India New Delhi
Last Updated : Jul 03 2016 | 10:20 AM IST
Centre has asked 12 mineral-rich states to set up state-level committees on an urgent basis to facilitate disposal of more than 100 cases where some permits were granted before the MMDR Act took effect.

The development follows delays in such disposal of cases where prospecting licences or reconnaissance permits were issued before commencement of Mines and Mineral (Development and Regulation) Amendment Act, 2015, which came into force from January 12, 2015.

"A committee should be constituted for each state... To thoroughly scrutinise saved proposals before sending them to the Ministry of Mines... All governments are requested to constitute a committee at the state level," the Ministry of Mines has said in a letter to secretaries in charge of mining and geology.

While the MMDR Act provided that all applications for grant of mineral concessions became "ineligible" on January 12, the day the Act kicked in, it exempted cases where a reconnaissance permit or prospecting licence has been granted for any land for mining.

It provided that the licensee or permit holder will have right for getting a mining lease, as the case may be.

A reconnaissance permit allows preliminary prospecting of mineral through regional, aerial, geophysical, geochemical surveys and geological mapping.

"The Ministry of Mines has been emphasising on the need for expeditious processing and disposal of mineral concession proposals sent by state governments for seeking previous approval of the central government under the proviso of amended section 10 A (2) of the MMDR Act," the letter sent to the states said.

The letter added that in a number of pending cases, information or documents submitted along with the proposals were insufficient, which made the task of processing difficult for the ministry.

Given the circumstances, the ministry felt that seeking necessary clarifications and documents from states and then technical comments from bodies like GSI and IBM will be time- consuming. To avoid delays in disposal of cases, it has been decided that state-level committees will thoroughly vet such cases before forwarding the same to the Centre.

The committees will comprise members from state mining and geology departments, besides the Indian Bureau of Mines (IBM) and the Geological Survey of India (GSI).

Rajasthan, Madhya Pradesh, Andhra Pradesh and Maharashtra account for 112 such pending cases.

The highest tally of 44 comes from Maharashtra, followed by Rajasthan (38), Madhya Pradesh (22) and Andhra Pradesh (8).

Earlier in a meeting, chaired by Mines Secretary Balvinder Kumar, a Rajasthan government official said that out of 38 pending cases, 24 deal in siliceous earth.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jul 03 2016 | 10:13 AM IST

Next Story