The Mines and Minerals Development and Regulation (MMDR) Amendment Bill, 2015, seeking to introduce the system of auction of mines to enhance transparency in mineral allocations was passed in Rajya Sabha (Upper house of the parliament) on Friday.
A select committee of 19 members has approved the Mines and Minerals Development and Regulation (MMDR) Amendment Bill, 2015, with two amendments, while four members in the panel moved a note of dissent. The panel, headed by Bharatiya Janata Party (BJP) Member of Parliament Bhupender Yadav.
What does Ordinance mean for India’s Mining Industry?
The Mines & Minerals (Development and Regulation) Amendment Ordinance, 2015 to amend the Mines & Minerals (Development and Regulation), Act 1957 states the following:
1. All mining leases granted before the commencement of the Mines & Minerals (Development & Regulation) Amendment Ordinance, 2015 shall be deemed to have been granted for a period of 50 years. On & from the date of commencement of the Mines & Minerals (Development & Regulation) Amendment Ordinance, 2015, all mining leases shall be granted for the period of 50 years. On the expiry of lease period, the lease shall be put up for auction as per the procedure specified in this act
2. The period of lease granted before the date of commencement of Mines & Minerals (Development & Regulation) Amendment Ordinance, 2015 where mineral is used for captive purpose, shall be extended and deemed to have been extended up to a period ending on 31 Mar, 2030 wef the date of expiry of the period of renewal last made or till the completion of renewal period, if any or a period of 50 years from the date of grant of such lease, whichever is later, subject to the condition that all the terms & conditions of the lease have been compiled with
3. Any holder of lease granted, where mineral is used for captive purpose, shall have the right of 1st refusal at the time of auction held for such lease after the expiry of lease period
4. A holder of a mining lease or a prospecting licence/mining lease with a previous approval of the state government, transfer his mining lease or a prospecting licence/ mining lease. For transfer of mining lease rights of a lease, terms and conditions by the central government should be fulfilled with prior notice to the state government. If the state government does not conveys its approval within period of 90 days from the date of receiving such notice it shall be construed that the former has no objection
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