Lok Sabha Question No. 6417 (UNSTARRED), answered on 2018-04-05
Subject: Upgradation of Mining Sector
Ministry: MINES
Asked by: ALOK SANJAR

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 6417

TO BE ANSWERED ON 05.04.2018

## UPGRADATION OF MINING SECTOR

## †6417. SHRI ALOK SANJAR:

Will the Minister of MINES be pleased to state:

- (a) whether  the  Government  proposes  to  upgrade  the  mining  sector  in  a  bid  to improve it more;
- (b) if so, the details thereof; and
- (c) the steps taken/proposed to be taken by the Government in this regard?

## ANSWER

THE MINISTER OF STATE FOR MINES AND COAL (SHRI HARIBHAI PARTHIBHAI CHAUDHARY)

- (a)  to  (c):  Upgradation/  reform  in  mining  sector  is  an  ongoing  process  to  bring  an overall  positive  impact  in  the  mining  sector.  The  Government  has  already  taken steps to upgrade the mining sector by amending  the Mines and Minerals (Development and Regulation) ( MMDR )  Act,  1957 through the MMDR Amendment Act, 2015. This has been 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  non-discriminatory  method.  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  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.

A 'Star Rating' system has been instituted by the Ministry of Mines through Indian Bureau  of  Mines  (a  subordinate  office  under  Ministry  of  Mines)  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 Indian Bureau of Mines, 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.

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## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 6417 TO BE ANSWERED ON 05.04.2018

## UPGRADATION OF MINING SECTOR

## †6417. SHRI ALOK SANJAR:

Will the Minister of MINES be pleased to state:

- (d) whether  the  Government  proposes  to  upgrade  the  mining  sector  in  a  bid  to improve it more;
- (e) if so, the details thereof; and
- (f) the steps taken/proposed to be taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR MINES AND COAL (SHRI HARIBHAI PARTHIBHAI CHAUDHARY)

- (a)  to  (c):  Upgradation/  reform  in  mining  sector  is  an  ongoing  process  to  bring  an overall  positive  impact  in  the  mining  sector.  The  Government  has  already  taken steps to upgrade the mining sector by amending  the Mines and Minerals (Development and Regulation) ( MMDR )  Act,  1957 through the MMDR Amendment Act, 2015. This has been 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  non-discriminatory  method.  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  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.

The  following  rules  to  provide  for  implementation  of  the  provisions  of  the  MMDR Amendment Act, 2015 have been framed and published in the Official Gazette:

- 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

A 'Star Rating' system has been instituted by the Ministry of Mines through Indian Bureau  of  Mines  (a  subordinate  office  under  Ministry  of  Mines)  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 Indian Bureau of Mines, 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 State Governments to extend MSS for surveillance of concessions, quarries/reaches given for minor minerals also.

Further,  a  committee  under  the  chairmanship  of  Additional  Secretary  (Mines)  has been constituted by the Ministry of Mines to review the National Mineral Policy, 2008. The Committee submitted its report on 31.12.2017. The New National Mineral Policy is yet to be finalized.

*****

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.

(a):  The  Ministry  of  Mines  had  constituted  a  committee  under  the  chairmanship of Additional  Secretary  (Mines)  to  review  the  National  Mineral  Policy,  2008.  The Committee submitted its report on 31.12.2017. Based on the report submitted by the committee, a draft National Mineral Policy 2018 was uploaded on the official website of  the  Ministry  on  10.01.2018  for  seeking  comments/suggestions  from  all  stake holders. The New National Mineral Policy is yet to be finalized.

(b) and (c): The Ministry of Mines has not conducted any study to identify the most pollutant States in the country.

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