Lok Sabha Question No. 123 (STARRED), answered on 2017-03-09
Subject: Reforms in Mining Sector
Ministry: MINES
Asked by: HARI MANJHI

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA STARRED QUESTION NO. *123 TO BE ANSWERED ON 09 th  MARCH, 2017

'Reforms in Mining Sector'

## †*123. SHRI HARI MANJHI:

Will the Minister of MINES be pleased to state:

- (a)  the status of reforms unleashed in the mining sector;
- (b) whether the Government proposes to initiate certain regulatory reforms in the mining sector by making amendments in the relevant Acts/Rules, if so, the details thereof; and
- (c) the time by which these 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): A statement is laid on the table of the House.

## THE STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 123  REGARDING  REFORMS  IN  MINING  SECTOR  RAISED  BY  SHRI  HARI  MANJHI, MEMBER OF PARLIAMENT FOR REPLY ON 09th  MARCH, 2017.

(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 Ordinance, 2015 which  was  promulgated  on  12th  January,  2015.  The  Ordinance  was  replaced  by  the  MMDR Amendment Act, 2015, notified on 27th March, 2015 which is deemed to have come into effect from 12th January, 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,  for  major  minerals,  through  auction  by  competitive  bidding  which  is  a  transparent  and non-discriminatory 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 are as 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  take  care  of  people  and  areas affected by mining related activities;
- 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 been increased from 2 years to 5 years;
- iv. Creation  of  National  Mineral  Exploration  Trust  ( NMET) for  regional  and  detailed exploration;
- v. Transition provisions for extension of existing leases to obviate disruptions in supply of ore and to ensure regular supply of raw material to the industry;

The following rules have been framed under the MMDR Amendment Act, 2015:

- i. Minerals (Evidence of Mineral Contents) Rules, 2015
- ii. Mineral (Auction) Rules, 2015
- iii. Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015
- iv. Mineral (Mining by Government Company) Rules, 2015
- v. Mineral (Non-exclusive Reconnaissance Permits) Rules, 2015
- vi. National Mineral Exploration Trust Rules, 2015
- vii. Minerals  (Transfer  of  Mining  Lease  Granted  Otherwise  than  through  Auction  for Captive Purpose) Rules, 2016
- viii. Atomic Minerals Concession Rules, 2016
- ix. Mineral (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules 2016
- x. Mineral Conservation and Development Rules, 2017

Some State Governments have already conducted auction for grant of mineral concessions for major minerals and so far 21 mineral blocks have been auctioned successfully. Advisory to State Governments  have  also  been  issued  to  incorporate  a  transparent  and  non-discriminatory  regime  for grant of mineral concessions for minor minerals. As regards DMF, out of the 12 mineral rich states of the  country,  11  states  [i.e.  Goa,  Karnataka,  Chhattisgarh,  Odisha,  Jharkhand,  Madhya  Pradesh, Rajasthan, Telangana, Andhra Pradesh, Gujarat and Maharashtra] have framed rules for DMF and have set-up DMFs in 287 districts. The NMET has been set up and total fund of around Rs. 622 crore 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. The policy, inter-alia, provide for:

- (i) Sharing of baseline geo-scientific data free of cost in public domain as a public good.
- (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 by the Ministry of Mines through Indian Bureau of  Mines  ( IBM )  (a  subordinate  office  under  Ministry  of  Mines)  vide  notification  no.  31/4/2016M.III  dated  23rd  May,  2016;  in  which  star  rating  is  awarded  to  the  mines  for  their  efforts  and initiatives taken for implementation of the Sustainable Development Framework (SDF). Rating of one to five stars is given to the mines by IBM. The best performing leases is given 5 Stars. A webportal has been developed for online filing of the evaluation template for Star Rating of Mines. The Star Rating data is to be filed by all the major mines. The amended MCDR, 2017 mandates that all working mines of major minerals would be required to have at least 4 star ratings within 2 years of the notification of these rules or the start of mining operations as the case may be.

The Ministry of Mines, through Indian Bureau of Mines ( IBM ),  has  developed the Mining Surveillance  System  ( MSS ), in collaboration with Ministry of Electronics  and Information Technology ( MEITY ) and Bhaskaracharya Institute for Space Applications and Geoinformatics ( BISAG ),  Gandhinagar, to use space technology for facilitating State Governments in curbing illegal mining activities in the country. MSS uses the Satellite Remote Sensing Technology together  with  Information  Technology. MSS  is  a  transparent  &  bias-free  system,  having  a  quick response time and capability of effective follow-up. A user-friendly mobile app has been developed for MSS which is used by inspecting officials of the State Governments to submit their geo-tagged inspection reports. Using this mobile app the citizens can also report unusual mining activity which is likely to be illegal mining, thus making it a participative & citizen centric monitoring system. The Mining Surveillance System has been launched on 15.10.2016. Total 269 triggers across the country were  generate  under  MSS  and  sent  to  the  respective  State  Governments  for  follow-up.  Till  now, field verification of 190 triggers have been completed by the State Government officials in which unauthorized mining has been reported in 29 cases (15%).

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