Mines & Minerals (Development and Regulation) Ordinance, 2014 for auction of Iron ore & non coal mines through competitive bidding has received consent by President, Pranab Mukherjee, cleared by the Union Cabinet in its meeting held on 5 Jan, 2015.
The Union Cabinet in a meeting held on 5 Jan’15 and chaired by Prime Minister, Narendra Modi, had approved promulgating an ordinance for auction of Iron ore and other minerals, yet again opting the emergency route that was adopted for coal, insurance and land acquisition reforms.
In a cabinet meeting chaired by Odisha Chief Minister, Naveen Patnaik, held on the same day i.e. 5 Jan’15, it was decided that all the non-coal (both captive and non-captive) mines, which are awaiting for 2nd and subsequent renewal will be allocated only through competitive bidding. While, mines that are awaiting for 1st renewal will not be auctioned. The rule is not applicable for mines held by OMC and other PSUs.
The need for taking the ordinance route was felt as the government was finding it difficult to allocate mines because the Mines Ministry could not table a Bill in the winter session of parliament to amend the Mines & Minerals (Development and Regulation) Act, 1957.
The previous UPA government had also tabled a Bill in 2011 to amend the Act. But, the Bill lapsed with dissolution of the previous Lok Sabha.
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