Amendments in mining rules to ensure raw material security: Dharmendra Pradhan

By: |
Published: October 1, 2019 8:26:02 PM

In another recent order, SAIL has also been allowed to offload in a year up to a quantity equivalent to maximum 25 per cent of total iron ore production in the previous year subject to clearance from the respective state governments, where the mines are located, the ministry said.

Amendment, mining rule, raw material security, Dharmendra Pradhan, MMDR Act, Government companies rules 2015Steel Minister Dharmendra Pradhan

Steel Minister Dharmendra Pradhan on Tuesday said that the recent amendments in mining rules by the Centre is an important step towards ensuring raw material security for domestic steel industry as the lease of 31 working iron ore mines is set to expire in March next year. In a step towards ensuring raw material security and seamless renewal of mining leases allocated to the government companies, the Mines Ministry has amended the Minerals (Mining) by Government companies rules 2015, the steel ministry said in a statement.

“It has substituted “may, for reasons to be recorded” in rule 3, in sub-rule (2) and rule 4, in sub-rule (3) with “shall, for reasons to be recorded,” the ministry said. This implies that for all mining leases for minerals granted to government companies, the state government upon an application made to it in this regard by the government company at least 12 months prior to the expiry of the mining lease, shall extend the period of the mining lease for further period of up to twenty years at a time, it said.

Lauding the amendment, Pradhan said, “It is an important step towards ensuring raw material security for steel PSUs. This will also ensure price stabilisation of raw materials and will have positive effect on the secondary steel industry. We are committed to ensuring raw material security for the Indian steel industry.”

Pradhan had taken up the issue with Mines Minister Pralhad Joshi soon after assuming charge of the Steel Ministry. In another recent order, SAIL has also been allowed to offload in a year up to a quantity equivalent to maximum 25 per cent of total iron ore production in the previous year subject to clearance from the respective state governments, where the mines are located, the ministry said.

“As per provision of Section 8A(6) of Mines and Minerals (Development & Regulation) Act, 1957 (in short, MMDR Act, 1957), the lease of 31 working mines of iron ore are expiring on 31.03.2020. Recent orders passed by the Ministry of Mines are important steps towards ensuring raw material security for Indian steel industry and effective management of situation in wake of probable disruptions in March 2020,” the steel ministry said.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1IMF’s $6 billion loan programme will be last for Islamabad, says State Bank of Pakistan governor
2Revenue from lottery skyrockets in Kerala, jackpot for state’s non-tax revenue
3Indo-US relations: Important for larger bilateral relationship to have some early results on trade issues