Lok Sabha Question No. 458 (UNSTARRED), answered on 2018-07-19
Subject: Reforms in Mining Sector
Ministry: MINES
Asked by: JUGAL KISHORE SHARMA

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO.458

TO BE ANSWERED ON 19.07.2018

## REFORMS IN MINING SECTOR

†458. SHRI JUGAL KISHORE:

Will the Minister of MINES be pleased to state:

- (a)  whether  the  Government  proposes  to  bring  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 FOR MINES AND COAL(SHRI HARIBHAI PARTHIBHAI CHAUDHARY)

(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 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 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 43 mineral blocks have been auctioned successfully which will  yield  total  revenue of approximately Rs.1.55 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. Twenty States have framed rules for DMF and have established DMFs in 525 districts. As on 31 st May, 2018, Rs.19435 Crore has been collected under DMF by these  States  and  64,248  projects  under  different  sectors  have  been  sanctioned under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). National Mineral Exploration Trust has been set up under Section 9C of the MMDR  Act,  2015  for giving thrust to mineral exploration. Total amount  of approximately  Rs.  1304  Cr  has  been  collected  under  NMET.  So  far,  80  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 sharing of baseline geo-scientific data free of cost in public  domain  as  a  public  good;  and  Aero-geophysical  survey  of  the  country  in  a mission mode. A  'Star  Rating'  system  has  been  instituted  to  recognise  the  efforts  and initiatives taken for ensuring 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 (MCDR), 2017, which mandates that all working mines of major minerals would be required to have at least 4 star rating within 2 years of notifying the MCDR, 2017. 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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