President Pranab Mukherjee has signed an ordinance on 12 Jan’15 to amend the Mines & Minerals (Development and Regulation), Act 1957.
The Union Cabinet in a meeting chaired by Prime Minister, Narendra Modi on 05 Jan’15, 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 05 Jan’15, it was decided that all the non-coal (both captive and non-captive) mines that 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 Mines & Minerals (Development and Regulation) Amendment Ordinance, 2015 to amend the Mines & Minerals (Development and Regulation), Act 1957 states the following:
1. All merchant mines renewed before commencement of the Mines & Minerals (Development & Regulation) Amendment Ordinance, 2015 shall continue operations till 31 Mar, 2015
2. 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
3. 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
4. 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
5. 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
What does the Ordinance indicate for Goa?
Mines, in Goa that received renewal before ordinance was passed will have their leases valid for 20 years. For instance, mines, which had 2nd renewal due in 2007 and got renewed before ordinance for 20 years, will be valid till 2027.
What does it signify for Odisha/Jharkhand?
Mines, which are due for 2nd deemed renewal and have not received it, can mine till 31 Mar, 2020 in case of merchant miners and 31 Mar, 2030 in case of captive miners.
This means 18 mines, which are closed due to 2nd deemed renewal, can operate their mines for 5 and 15 years based on their utility. However, the state government is yet to come out with a clarification on this ordinance.
Link to The Mines And Minerals (Development And Regulation) Amendment Ordinance, 2015
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