The Steel & Mines Minister, Mr Narendra Singh Tomar has urged that the MMDR Act, 2015 will simplify procedures as well as help avoid delays in mining sector.
While addressing a press conference in New Delhi held on 20 Mar’15, Mr. Narendra Singh Tomar, steel & mines minister, said that as soon as Mines and Minerals Development and Regulation (MMDR) Amendment Act, 2015 is notified in about a week, the draft rules will be circulated to the states. Moreover, the new act will simplify procedures as well as help to avoid delays in mining sector.
State governments are required to obtain prior approval from the Central government before granting the mineral concessions w.r.t 10 minerals in Part C of 1st Schedule (like Iron ore, Manganese, Bauxite, Copper, Gold etc). The amendment has removed the need for such ‘prior approval’ from the Central government to simplify the process.
Similarly, mining plan approval would no longer be mandatory. A provision has been added under Section 5(2)(b), which permits the state governments to devise a system for filing of a mining plan, removing the need for prior approval.
Mining likely to resume soon
When asked about pending renewal applications, Mr Tomar said that in order to transition to the new system, mining leases would be extended from the last renewal date upto 31 Mar’30 (for captive) and till 31 Mar’20 (for merchant) or till the completion of renewal period already granted, if any, whichever is later.
It is anticipated that this would immediately grant mining permissions to closed mines, subject to necessary clearances like forest & environment. Prior approval from the Central government will not be required to grant mineral concession, Mr Tomar further added. In addition, MoEF (Ministry of Environment & Forest) has extended forest clearances for 82 mines under the act, which includes Iron, Limestone and Manganese ores.
MMDR Act Beneficial for the State
The amendment has scrapped the discretion in grant of mineral concessions. All mineral concessions will be granted through auctions by the respective state governments to bring transparency. This should also mean that the government will get a profitable share from mining sector.
Unlike in the MMDR Act 1957, there would be no renewal of any mining concession. The tenure of mineral concessions has been surged from the existing 30 years to 50. Thereafter, all mining lease would be put under hammer and not for renewal.
MMDR will surge Mining Cost
Mr Narendra Singh Tomar also commented that this act has made mandatory to setup a District Mineral Foundation (DMF) in all districts, where mining will take place. This is designed in order to address a long time grievance of civil society that people affected by mining are not cared for.
Contribution of an amount not exceeding one-third of the royalty rate in so far as new concessions are concerned and not exceeding the royalty w.r.t existing concessions will be made to the DMF. The bill also makes it mandatory for the state governments, while framing rules, to give effect to the DMF. This is to conform the provisions of such Acts as the Panchayats (Extensions to Scheduled Areas) Act, 1996, Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 as well as provisions in the Constitution relating to 5th and 6th Schedule areas.
Mr Tomar also said that the amendment proposes to establish a National Mineral Exploration Trust with contribution from the mining lease holders. This would allow the government to have a dedicated fund for undertaking exploration. In addition, the transferability provision would permit flow of greater investment to the mining sector as well as increase efficiency.
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