Govt mulling amendments to MMDR Act to bring mineral auction

The government is considering amendments to the Mines and Minerals (Development and Regulation) Act, 1957, to bring in the provision of auction for bulk minerals like iron ore and others.
The proposal came up for discussion at a meeting between Union Steel and Mines Minister Narendra Singh Tomar and state Chief Minister Naveen Patnaik here today.
"Tomar informed that central government is considering amendments in MMDR Act to bring the provision of auction for bulk minerals and is soliciting views of state governments. State government of Odisha expressed in-principle agreement on the issue," an official statement said.
Seeking to replace a more than half-a-century-old law, the UPA government had in 2011 tabled the MMDR Bill, 2011 in Lok Sabha in December, 2011. It could not be passed.

The Bill had envisaged introduction of the competitive bidding process to encourage the participation of private parties in the sector.
The 1957 Act of the same name has already been amended several times and further amendments may not clearly reflect the objects emanating from the New National Mineral Policy.

The MMDR Bill, 2011 also sought to empower the state governments to constitute special courts for the purpose of providing speedy trial of the offences relating to illegal mining.
It also intended to empower the central government to intervene in the cases of illegal mining where the concerned state government fails to take action against illegal mining.

"It was also informed by the minister (Tomar) that in order to increase transparency in the processing of mining concessions, central government has decided to consider only the cases of notified area as default. Cases of non-notified area would be considered only when there are very compelling reasons," the statement said.
Tomar also raised the issue of closed iron ore mines subsequent to Supreme Court decision on second and subsequent renewal.
He also suggested that state government should take early decision on second and subsequent renewals so that these mines could be restarted for restoring availability of iron ore for steel plants.

"...Issue of grant of mining lease for Pottangi mines for Nalco, second renewal of Barsua iron ore mines for SAIL and six mines of OMDC were discussed. The Chief Minister assured to decide pending cases in 3 months," the statement said.