MMDR Bill to be passed in winter session

The proposed Mines and Minerals (Development and Regulation) Bill, 2011 would be passed in the Parliament during the winter session this year, a top government official said.

“The new legislation is now before the Standing Committee of the house for examination. After the recommendations are received, the draft Bill would be taken up for Parliamentary approval during the winter session,” Vishwapati Trivedi, Secretary to government of India, ministry of mines said.

The draft MMDR Bill, 2011 was tabled in the Lok Sabha on December 12, 2011. The Standing Committee has completed extensive consultations with various stakeholders and some changes are being effected, he said in Bangalore.

 

He said the government has tried to balance the aspirations of the various stakeholders in use of mineral resources in the larger interest of the nation. “I am sure the final legislation as approved by the Parliament would be able to satisfactorily address the concerns in the larger interest of the country.”

Trivedi said the draft legislation seeks to increase transparency, reduce discretions, and proposes a simple and transparent mechanism with clear timelines for grant of Mining Lease and Prospecting Licence through competitive bidding on areas where the state government has adequate knowledge of mineralisation. He clarified that, as against the recommendation of the Apex Court for allocation of all natural resources through auction, the government is of the opinion that it may not be true for all natural resources. “While all the known and proven deposits could definitely be allotted on competitive bidding once the Bill is passed, in areas where there is no knowledge of mineral type or quantity or quality, the best suited method for allocation of deposit would be the time-tested chronological priority method,” he said.

He said the ministry of mines has identified six key priorities to achieve the objectives of the National Mineral Policy, 2008. They include enhancing resource and reserve base through exploration and international acquisition, reducing permit delays, putting place core enables, ensuring sustainable mining and sustainable development around mining among others.

“Suitable measures have already been initiated on the implementation of the strategy that also include strengthening of Geological Survey of India and Indian Bureau of Mines, setting up a Mining Tenement System for providing details on availability of potential areas to investors, preparation of sustainable development framework for the mining sector as a proactive measure to ensure sustainable mining,” Trivedi added.

The three-day meet on mining was attended by over 300 delegates drawn from various mining companies from India and abroad, state governments and policy makers among others.

Earlier, H C Daga, President, Federation of Indian Mineral Industries (FIMI) said that no country in the world has adopted auction or bidding route for natural resources except Russia and Kyrgyzstan for coal and urged the government to drop the idea while passing the MMRD Bill.