The Ministry of Coal (MoC) has made amendments to the Mineral Concession Rules (MCR), 1960 in a bid to enhance ease of doing business.
The term ‘Mineral Concession’ refers to a license, permit, or other contract such as reconnaissance permit, prospecting license and mining lease. The rules under MCR regulate the application and grant of these concessions.
These are prerequisites for the development and operationalisation of mines that entails several compliances on the part of businesses. However, the government has been taking initiatives to reduce the compliances through regular amendments.
In fact, the previous amendment in the MCR was carried out in October 2021.
In the latest amendment, the MoC has reduced the rate of penal interest on delayed payment of rent, royalty, fee, or other related amounts under Rule 64(A) from 24% to 12%.
This interest would be charged from the date of expiry of the time period allowed by the state government. Earlier, it was payable from the sixtieth day from the date fixed by the state government.
Secondly, provision has been introduced for adjustment of additional or shortfall royalty under Rule 64(B). The royalty payment would be subjected to:
(a) Final grade of coal or lignite after sampling.
(b) Final declaration of price index as applicable for relevant basket for coal or lignite, on the date of dispatch or consumption.
Accordingly, based on the computation for royalty, the balance payment would be adjusted between the leaseholder and state government.
Moreover, the ministry has decriminalised 68 provisions whereas penalty has been reduced for 10 provisions listed under MCR, thereby providing much-required economic relaxation in the coal mining sector.
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