The Ministry of Mines has proposed to repeal section 10A2(b) in the Mining and Minerals Development (Regulation) Act that allows miners the right to own leases indefinitely without developing the mines, according to various media reports.
Numerous mines auctioned previously have been lying idle for decades because the lease owners do not want to invest in exploration.
The Union Cabinet may soon consider revoking the section from the MMDR Act.
Repealing the section may cancel leases of about 500 mines which will then be sold via fresh auctions.
But a Supreme Court advocate told SteelMint that repealing the section may lead to a challenge of the decision in court by leaseholders of idle mines.
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