"Apart from ushering in transparency in mines allocation process, the Bill will bring in a revolutionary change in the sector. It will also attract more investment to the sector, enhance expertise and income of those employed with the sector," Steel and Mines Minister Narendra Singh Tomar told PTI.
The new law seeks to bring in transparency in allocation of mines of 10 minerals including bauxite, iron ore, limestone and manganese ore and cut discretions, he said.
The Mines and Minerals (Development and Regulation) Act, 1957 regulates the mining sector in India and specifies the requirement for obtaining and granting mining leases for mining operations.
Tomar said it would also help in bringing out untapped potential of the sector with two per cent of the royalty fixed to be used on exploration activities, adding the auctioning process could likely be started by June.
"Exploration (of minerals) will get a boost. Process will be simplified and investment will come in," he said.
"We are already in the process of framing the rules and guidelines for auctioning. We hope to ready them within May. Unlike coal, mines will be auctioned by the states. I think the process can be started by June," he said.
Tomar said the Bill provides for creation of a District Mineral Foundation (DMF) for the welfare of the persons in districts affected by mining related operations.