Lok Sabha Question No. 5467 (UNSTARRED), answered on 2017-04-06
Subject: Bauxite Mining
Ministry: MINES
Asked by: PARBHUBHAI NAGARBHAI VASAVA

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO.5467 TO BE ANSWERED ON 06/04/2017 Bauxite Mining

## †5467 SHRI PARBHUBHAI NAGARBHAI VASAVA

Will the Minister of MINES be pleased to state:

- (a) the  number  of  public  vis-à-vis  private  sector  companies  working  in  the  field  of  Bauxite  mining separately;
- (b) whether the Government charges any fees/taxes from private sector companies from time to time for mining operations etc.; and
- (c) if  so,  the  average  amount  of  such  fees/taxes  being  collected  every  year  and  the  impact  of  said companies on environment?

## ANSWER THE MINISTER OF STATE (I/C) MINES, COAL, NEW AND RENEWABLE ENERGY AND

## POWER (SHRI PIYUSH GOYAL)

(a): There are  total 77 mining companies working in the field of  bauxite mining in the country out of which 4 are in the public sector and remaining 73 are in the private sector.

(b) & (c): State Governments are empowered to identify/notify grant of mineral concession and administer the  same  as  per  the  Mines  and  Mineral  (Development  and  Regulation)  ( MMDR )  Act,  1957  and  rules framed thereunder. As per the provision of MMDR Act 1957, the holder of a Mining Lease (ML) is liable to pay royalty at the rate prescribed in the Second Schedule of the said Act.  The royalty is collected and appropriated  by  the  State  Governments.    Further  the  holder  of  the  mining  lease  is  also  liable  to  pay contribution to the District  Mineral  Foundation ( DMF )  at  the  rate  of  30%  of  the  royalty  if  the  Mining Lease ( ML )  has  been  granted  before 12.01.2015 and 10% of royalty if the ML has been granted on or after 12.01.2015.  This contribution to DMF is also collected by the State Government and deposited in the DMF of the district concerned.   Apart from these levies, the said Act also prescribes payment of the amount equal to 2% of royalty as contribution to the National

Mineral Exploration Trust ( NMET )  into a designated bank account for promoting regional and detailed mineral  exploration  in  the  country.    All  the  accruals/revenues  from  lease  holders  are  collected  and appropriated by the State Government concerned during the lease period of a mining block and are not maintained centrally. However, as per information received from eleven mineral rich states namely Goa, Karnataka,  Chhattisgarh,  Odisha,  Madhya  Pradesh,  Jharkhand,  Rajasthan,  Telangana,  Andhra  Pradesh, Gujarat  and  Maharashtra  an  amount  of  Rs.  5817.43  crores  has  been  collected  under  DMF  as  on 31/12/2016. The amount of Rs. 658.68 crore has been collected as contribution to NMET as on 31/3/2017.

With regard to impact of Mining on environment, the holder of a Mining Lease (ML) is required to obtain  an  environmental  clearance  before  commencement  of  mining  work  under  the  provisions  of Environment (Protection) Act, 1986 and rules made thereunder.  The environmental clearance stipulates an annual level of production of mineral which ensures environmental sustainability.

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