Lok Sabha Question No. 1975 (UNSTARRED), answered on 2017-07-27
Subject: Reforms in Mining Sector
Ministry: MINES
Asked by: HARI MANJHI, JUGAL KISHORE SHARMA

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO.1975 TO BE ANSWERED ON 27.07.2017

## REFORMS IN MINING SECTOR

## †1975. SHRI HARI MANJHI: SHRI JUGAL KISHORE:

Will the Minister of MINES be pleased to state:

- (a) whether the Government proposes to introduce certain regulatory reforms in the mining sector;
- (b) if so, the details thereof; and
- (c) the time by which these reforms are likely to be implemented?

## ANSWER

## THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES (SHRI PIYUSH GOYAL)

(a)to(c):  Reforms  in  the  mining  sector  were  brought  about  by  amending  the  Mines  and Minerals (Development and Regulation) ( MMDR ) Act, 1957 through  the  MMDR Amendment Act, 2015, the provisions of which are deemed to have come into effect from 12.01.2015. The Act was further amended in 2016 to allow transfer of mining leases granted otherwise than through auction for captive purpose.

The most important provision of the MMDR Amendment Act, 2015, is the grant of mineral concessions through auction by competitive bidding which is a transparent and nondiscriminatory method and which will also obtain for the State Government its fair share of value of the mineral resources. The other important provisions of the MMDR Amendment Act, 2015 areas follows:

- i. Assured tenure and easy transferability  of  concessions  granted  through  auctions,  in order to attract private investment and Foreign Direct Investment;
- ii. Constitution  of  District  Mineral  Foundation  ( DMF )  to  work  for  the  interest  and benefit of persons, and areas affected by mining related operations;
- iii. Stricter  punitive  provisions  to  deter  illegal  mining,  wherein  penalties  have  been increased from Rs. 25 thousand per hectare to Rs. 5 Lakh per hectare and the term of imprisonment has also been increased from 2 years to 5 years;
- iv. Creation  of  National  Mineral  Exploration  Trust  ( NMET )  for  regional  and  detailed exploration.

Rules  to  provide  for  implementation  of  the  provisions  of  the  MMDR  Amendment Act, 2015 have been framed and published in the Official Gazette.

Some  States  have  commenced  auction  for  grant  of  mineral  concessions  for  major minerals and so far 29 mineral blocks have been auctioned successfully which will yield a total revenue of approximately Rs.1.22 lakh crores to the States over the period of the lease. Advisory has also been issued to State Governments to make suitable changes in the rules for incorporating a transparent and non-discriminatory method for grant of mineral concessions for minor minerals.

Twelve  mineral  rich  states  [i.e.  Goa,  Karnataka,  Chhattisgarh,  Odisha,  Jharkhand, Madhya Pradesh, Rajasthan, Telangana, Andhra Pradesh, Gujarat, Maharashtra and Tamilnadu] have framed rules for DMF and have established DMFs in 307 districts. So far, Rs.10136 Cr has been reported to have been collected for DMF by these States; and some of the States have already launched welfare programmes for the implementation of DMF.

The NMET has been set up and total amount of approximately Rs. 839 Cr has been collected  under  NMET.  So  far,  60  mineral  exploration  projects  have  been  approved  for implementation through NMET. National Mineral Exploration Policy, 2016 has been notified in July, 2016, which, inter-alia, provides for:

- (i) Sharing of baseline geo-scientific data free of cost in public domain as a public good; and
- (ii) Aero-geophysical survey of the country in a mission mode, initially in the obvious geological potential [OGP] area of about 8.0 lac sq. kms and subsequently in the rest  of  the  areas.  A  pilot  project  over  OGP  area  of  about  2.06  lakh  sq.  km.  has been initiated.

A  'Star  Rating'  system  has  been  instituted  to  recognise  the  efforts  and  initiatives taken for undertaking sustainable mining, which is based on self assessment to be done by the lessees.  This  has  been  made  a  statutory  requirement.  Rule  35  of  the  Mineral  Conservation Development  Rules,  2017  mandates  that  all  working  mines  of  major  minerals  would  be required to have at least 4 star rating.

The Ministry of Mines, through IBM, has developed the Mining Surveillance System (MSS),  which  is  a  satellite  based  monitoring  system  which  aims  to  check  illegal  mining activity through automatic remote sensing detection technology in order to establish a regime of responsive mineral administration. The system records activity outside the lease boundary and  generates a trigger for action on  part of the  State  Governments  to  investigate encroachment  and  take  necessary  action.  MSS  has  been  made  functional  throughout  the country for major minerals. Ministry of Mines has requested the State Governments to extend MSS for surveillance of concessions, quarries/reaches given for minor minerals also. So far, a total  of  296  triggers  across  the  country  were  generated  under  MSS  and  sent  to  respective State  Governments  for  follow-up.  Field  verification  of  the  256  triggers  has  resulted  in detection of unauthorized mining in 47 cases.

Reforms  in  the  mining  sector  have  been  successfully  implemented,  which  is  an ongoing process to bring an overall positive impact in the mining sector.

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