Centre plans MMDR Act overhaul, to draft comprehensive new mining law

The government is considering overhauling the Mines and Minerals (Development and Regulation) Act, 1957, into a comprehensive new mining law, a move aimed to incorporate ease of living and ease of doing business reforms, sources said.

The mines ministry administers the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) The Act has been amended from time-to-time to keep pace with the evolving requirements of the mining and minerals sector, sources said.

In recent years, the Centre has made efforts to review the nation's regulatory landscape to incorporate ease of living and ease of doing business reforms across all sectors.

Considering that the mining and mineral sector is important for the economy, future technological progress, fulfilling the strategic needs of the country, and achieving the vision of Viksit Bharat by 2047, the MMDR Act, 1957, is proposed to be overhauled into a comprehensive and streamlined new mining law, sources said.

 

An inter-ministerial panel under the chairmanship of mines additional secretary will draft the new bill, they said. It will review the existing MMDR Act, 1957 in its entirety, examine international best practices, and incorporate them in the new bill.

The committee will also incorporate the necessary provisions keeping in mind the future trends in the mining sector.

It will simplify the language of the current law to improve ease of living and ease of doing business, align its provisions with related statutes and constitutional requirements, and suggest structural and substantive reforms to enhance clarity, enforceability and efficiency.

The committee will consult stakeholders, including state governments, before preparing the draft of the bill.

The MMDR Act, 1957 is the main central law governing the development and regulation of mines and minerals in the country.

It empowers the Centre to regulate mining and mineral development in public interest and frame rules for the conservation and systematic development of minerals. The law distinguishes between major minerals, regulated by the Centre, and minor minerals, regulated by states.

Under the Act, mineral concessions such as prospecting licenses and mining leases are granted by state governments, and they follow rules and auction processes set by the Centre. The central government also fixes royalty rates, which states collect from the lessees.