The government has released a draft Bill redefining regulations for the minerals sector. The purpose is to make the concession regime more investor-friendly by simplifying procedures and providing for security of tenures. The new Mines and Minerals (Development and Regulation) (Amendment) Bill, 2014, that seeks to bring comprehensive amendments to the MMDR Act 1957, also proposes to increase efficiency by allowing transfer of reconnaissance and prospecting licences and associated data without restrictions.
While most of the provisions in the draft Bill are akin to the lapsed MMDR Bill 2011, which was introduced in Parliament by the previous UPA government, the new one also has some additional provisions and some omissions. The lapsed MMDR Bill had proposed that mining companies share 26% of profits with the project-affected people, but the new Bill is silent on this.
To improve transparency in allocation as well as to ensure a fair share of the value of minerals for the government, the new Bill prescribes competitive bidding by auction to be followed for allocation of mining leases (MLs) in respect of notified minerals. It is proposed that there need not be any reconnaissance permits or prospecting licences issued for such minerals.
Different set of regulations are proposed for suficial and deep-seated minerals, considering the mining of latter is a high-risk.
Also, the Amendment Bill seeks to make the offence of illegal mining in respect to notified minerals a cognizable offence. The state governments are asked to set up special courts for trial of offences under the Act, if necessary. In all affected districts, states shall, by notification, establish a trust to be called the District Mineral Foundation.
Though states are the licensing agencies, the Centre will be specifically empowered to frame rules to set timelines for the various stages in processing applications for grant of mineral concessions and renewals.
The mines ministry invited comments and suggestions on the draft Bill from states, the mining industry, other stakeholders and public. The comments should reach latest by December 10. The comments may be sent by e-mail to mmdr2014@gov.in.