Lok Sabha Question No. 1494 (UNSTARRED), answered on 2021-07-28
Subject: Mineral Resources
Ministry: MINES
Asked by: Ashok Mahadeorao Nete

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1494

ANSWERED ON 28.07.2021

## MINERAL RESOURCES

## †1494 SHRI ASHOK MAHADEORAO NETE:

Will the Minister of MINES be pleased to state:

(a)   whether  the  Government  contemplates  to  promote  and  conserve  the  huge mineral resources of the country;

- (b)  if so, the details thereof; and
- (c)  the measures taken by the Government in this regard?

## ANSWER

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

(a)  to  (c) Yes,  Sir.  The  Ministry  of  Mines  administers  the  Mines  and  Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957) which is the Central Act that governs the development and regulation of mines and minerals in terms of the powers vested in the Central Government as per Entry 54 of the Seventh Schedule of the Constitution.

The MMDR Act, 1957 has been amended from time to time to promote and conserve the mineral resources of the country. Through the amendment in the MMDR Act in year,  2015,  it  has  been  made  mandatory  that   the  mineral  concessions  will  be granted through transparent and non-discriminatory method of auction to ensure the fair value of mineral resources to States.

Recently,  Ministry  of  Mines  has  amended  MMDR  Act,  1957  through  the  MMDR Amendment Act, 2021  which  has  been  notified  on  28.03.2021  for  giving  boost  to mineral production, improving ease of doing business in the country and increasing mineral production.  The amended Act, inter-alia , contains following provisions which promote the mineral sector in the country:

-  Simplification of exploration regime - (i) To ensure seamless transition of the concession from exploration  to  production  (ii)  Mineral  Blocks  for  Composite Licence can be auctioned at G4 level of exploration instead of G3 level as per the earlier   standard.  (iii) Mineral Block for surfacial mineral can be auctioned for grant of Mining Lease  at G3 level instead of G2 level. (iv)  Private entities may  be  notified  under  Section  4(1)  of  the  MMDR  Act  for  conducting exploration.
-  National Mineral Exploration Trust shall be a non profit  autonomous body; the entities notified under Section 4(1) of the MMDR Act are eligible for funding through funds accrued under NMET.

Further,  Section  18  of  the  MMDR  Act,  1957  empowers  Central  Government  to frame rules for  conservation  and  systematic  development  of minerals  and for  the protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations. Accordingly, Mineral Conservation and Development  Rules  (MCDR),  2017(amended from time  to  time)  were  framed.  As per Section 5(2) (b) of the MMDR Act 1957, no mining lease can be granted unless there  is  a  mining  plan  for  the  development  of  mineral  deposits  in  the  area concerned duly approved by the Central Government or by the State Government. Mining  Plan  incorporates  detailed  proposals  for  systematic  and  scientific  mining, conservation  of  minerals  and  protection  of  environment  with  respect  to  the  lease area. Indian Bureau of Mines IBM is mandated for approval of Mining Plan, as per the provisions of Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016. As per the provisions of MCDR, 2017, Indian Bureau of Mines  carries  out  periodical  inspections  of  mines  to  monitor  conservation  of minerals,  systematic  and  scientific  mining  and  protection  of  environment  in  the leasehold areas of minerals other than minor minerals, coal and atomic minerals.

Further,  section 4A of MMDR Act 1957 empowers the Central Government after  consultation  with  the  State  Government  to  terminate  Prospecting  Licence  or Mining Lease, inter alia , for conservation of mineral resources.

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