The Rajya Sabha passes Mines and Minerals (Development and Regulation) Amendment Bill, 2021[1] on 22nd March, 2021. It was introduced in Lok Sabha on 15th March, 2021 and passed from Lok Sabha on 19th March, 2021. The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957, which regulates the mining sector in India.
The salient features of the Bill are:
- Non-exclusive reconnaissance permit: The Bill removes the provision for non-exclusive reconnaissance permit. Reconnaissance means preliminary prospecting of a mineral through certain surveys.
- Removal of restriction on end-use of minerals: The Bill provides that now no mine shall be reserved for particular end-use.
- Captive mines: The Bill enables the captive mines (other than atomic minerals) to sell up to 50% of their annual mineral production in the open market.
- Auction by the central government: Central government to specify a time period for completion of the auction process in consultation with the state government. If the state government is unable to complete the auction process within this period, the auctions may be conducted by the central government.
- Transfer of statutory clearances: Once the lease period of a mine has expired, the Act provides for leasing of the mine to new person through auction. The clearances issued to the previous lessee are transferred to the new lessee for a period of two years. The new lessee is required to obtain fresh clearances within these two years. The Bill substitutes this provision and provides that transferred statutory clearances will be valid throughout the lease period of the new lessee.
- Allocation of mines with expired leases: The Bill inserts that mines (other than coal, lignite, and atomic minerals), whose lease has expired, may be allocated to a government company in certain cases.
- Rights of certain existing concession holders: By 2015 Amendment to the Act, it was provided that the mines will be leased through an auction process and the existing concession holders and applicants have been provided with certain rights including: right to obtain prospecting licence or mining lease to a holder of reconnaissance permit or prospecting licence (issued before commencement of the 2015 Amendment Act), and (ii) right for grant of mining lease where the central government had given its approval or letter of intent was issued by the state government before the commencement of the 2015 Amendment Act. The Bill states that the right to obtain a prospecting license or a mining lease will lapse on the date of commencement of the 2021 Amendment Act. Such persons will be reimbursed for any expenditure incurred towards reconnaissance or prospecting operations.
- Extension of leases: The Bill provides that the period of mining leases of government companies (other than leases granted through auction) may be extended on payment of additional amount prescribed in the Bill.
- Lapse of mining lease: The Act provides the conditions when the mining leases will lapse. The Bill adds that the threshold period for lapse of the lease may be extended only once and up to one year by the state government.
*Tanvi Singh, Editorial Assistant has put this story together.
[1]https://prsindia.org/files/bill_track/2021-03-15/The%20Mines%20And%20Minerals%20(Development%20And%20Regulation)%20Amendment%20Bill,%202021.pdf