Lok Sabha Question No. 2870 (UNSTARRED), answered on 2019-07-10
Subject: Mineral Concession Rules
Ministry: MINES
Asked by: Krupal Balaji Tumane

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2870

ANSWERED ON 10.07.2019

## MINERAL CONCESSION RULES

†2870.  SHRI KRUPAL BALAJI TUMANE:

Will the Minister of MINES be pleased to state:

- (a) whether the salient features of the Mineral Concession Rules;
- (b) whether  the  expansion  of  mines  have  been  limited  by  the  amendment  in license renewal in mineral concession rules and if so, the details thereof;
- (c) whether  the  Government  gives  permission  to  work  in  such  mines  which  are more than 40 years old;
- (d) if so, whether the production of steel has decreased especially in Odisha and Jharkhand due to the notification which affected iron ore production and supply thereof; and
- (e) if  so,  the  details  thereof  and  the  number  of  mines  operating  under  'Maanit Vistaar'?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

- (a):  The  MMDR  Act,  1957  has  been  amended  through  the  MMDR  Amendment Act, 2015. The Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 ( MOAHCEMC Rules, 2016 ) have been framed under the Mines and Minerals (Development and Regulation) Act, 1957 ( MMDR Act, 1957 ) and published in the Official Gazette vide notification No. G.S.R. 279 (E) dated 04.03.2016.

The MOAHCEMC Rules, 2016 prescribe the procedures for regulating the grant of mineral concessions and for purposes connected therewith. Some of the salient features/provisions of these rules are as following:

- (i) Rights of existing holders of mineral concessions and ;
- (ii) Mineral concessions to be granted through auction only;
- (iii) Preparation of the mining plan and system of certification;
- (iv) Expiry of a mining lease and auction thereafter;
- (v) Easy transferability of concessions obtained through auctions;
- (vi) Powers to Central Government to intervene even where State Governments do not pass orders within prescribed time lines; and
- (vii)  Stricter penal provisions.

(b)  &  (c):  Section  8A  has  been  inserted  in  the  MMDR  Act  through  the  MMDR Amendment Act, 2015. Section 8A(2) of  the  MMDR Act,  1957  provides  that  all mining lease shall be granted for the period of fifty years on and from the date of commencement of the MMDR Amendment Act 2015.

With  the  enactment  of  MMDR  Amendment  Act,  2015,  the  concept  of renewal of mining lease has been done away with for minerals other than those specified in part A and part B of First Schedule. Section 8A(4) of the MMDR Act, 1957 provides that on the expiry of the lease period, the lease shall be put up for auction as per the procedure specified in this Act. In line with the provisions of MMDR Amendment Act, 2015, the MOAHCEMC Rules, 2016 provides provisions for expiry of mining lease.

Further,  Section  8(A)  (5)  &  (6)  provide  that  the  period  of  mining  leases granted before the date of commencement of the MMDR Amendment Act, 2015 shall be extended and be deemed to have been extended upto a period ending on 31st  March,  2030  (where  mineral  used  for  captive  purpose)/31st  March,  2020 (where mineral is used for other than captive purpose) with effect from the date of expiry  of  the  period  of  renewal  last  made  or  till  the  completion  of  the  renewal period  if  any  or  a  period  of  50  years  from  the  date  of  grant  of  such  lease, whichever is later, subject to the condition that all the terms and conditions of the lease have been compiled with.

(d)  &  (e):  No  such  information  related  to  production  of  steel  is  available  with Ministry of Mines. However, as per information made available by Indian Bureau of Mines ( IBM ), a sub-ordinate office under the administrative control of Ministry of  Mines,  the  production  of  iron  ore  in  Jharkhand  and  Odisha  has  increased during 2016-17 to 2018-19. The details in this regard are given below:

| Year    |   Jharkhand |   Odisha |   India |
|---------|-------------|----------|---------|
| 2016-17 |       21226 |    99614 |  194584 |
| 2017-18 |       21848 |   102177 |  200955 |
| 2018-19 |       23433 |   113055 |  206446 |

(Qty in THT)

Further, it is stated that extensions of tenure of mining leases are done by the  State  Governments  in  accordance  with  the  provisions  of  section  8A  of  the MMDR Act, 1957.

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