Lok Sabha Question No. 1746 (UNSTARRED), answered on 2022-07-27
Subject: Leasing of Mines
Ministry: MINES
Asked by: Malook Nagar

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1746

ANSWERED ON 27.07.2022

## LEASING OF MINES

†1746. SHRI MALOOK NAGAR:

Will the Minister of MINES be pleased to state:

- (a) the role of the Union Government in the development of minerals across the country and especially in leasing of mines and giving approval for mineral concessions to the State Governments;
- (b) whether the Indian Bureau of Mines performs regulatory functions with respect to the conservation and development of mines under Mines and Minerals (Development and Regulation) Act;
- (c) if so, the details thereof;
- (d)  whether  the  prevailing  system  is  helpful  in  checking  of  illegal  mining  across  the country;
- (e) if not, whether the Government proposes to amend the current legislative framework for the above purpose; and
- (f) if so, the details thereof?

## ANSWER

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

- (a):      As per the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act),  the  Central  Government  has  been  empowered  for  regulation  of  mines  and development of minerals to the extent provided in the said Act. As per section 18 of the MMDR  Act,  Central  Government  is  responsible  to  make  rules  for  conservation  and systematic development of minerals in India and for the protection of the environment by preventing or controlling any pollution which may be caused by prospecting or mining operations  and  for  such  purposes  as  necessary.  Under  this  section,  the  Central Government has framed the Mineral Conservation and Development Rules, 2017.

Under  the  said  Act  and  the  rules  framed  thereunder,  the  State  Government  are empowered to carry out auction of mineral concessions in respect of land in which the minerals vest in the concerned Government. However, previous approval of the Central Government is required in the following cases:

- i. Under section 5(1) of the Act for minerals listed in Part A & B of the first schedule to the Act for grant of mineral concession.
- ii. Under section 10B(2) of the Act for auction of Composite Licence (CL) of notified minerals, viz., Iron Ore, Limestone, Manganese and Bauxite.
- iii. Under  section  17A(2)  of  the  Act  for  reservation  of  any  area  by  the  State Government  in  favour  of  a  Government  company  or  corporation  owned  or controlled by the State Government.

Further, Central Government is empowered to reserve any area not already held under a mineral concession, in favor of a Government company or corporation owned or controlled by the Central Government under Section 17A(1A) of the MMDR Act.

(b)  &  (c):  Indian  Bureau  of  Mines  (IBM),  a  subordinate  office  of  Ministry  of  Mines,  is engaged in the promotion of scientific development of mineral resources of the country, conservation of minerals, protection of environment in mines, other than coal, petroleum and natural gas, atomic minerals and minor minerals. It performs regulatory functions with respect to the relevant provisions of MMDR Act and the Mineral Conservation and Development Rules, 2017.

Further, as per notification in Official Gazette vide Resolution No. 31/49/2014 M.  III,  dated  3rd  November,  2014,  IBM  is  mandated  to  functions  as  the  National Technical  Regulator  in  respect  of  the  mining  sector,  and  lay  down  regulations, procedures  and  systems  to  guide  the  State  Governments  (first  tier  of  regulation); provide technical consultancy services; participate in international collaborative projects in  the  area  of  regulation  and  development  of  the  mineral  sector;  undertake  any  such other  activity  as  has  become  necessary  in  the  light  of  developments  in  the  field  of geology, mining, mineral beneficiation and the environment; etc.

(d)  to  (f): Section  23C  of  the  MMDR  Act,  1957  empowers  the  State  Government  to make rules for preventing illegal mining, transportation and storage of minerals and for purposes  connected  therewith.  The  MMDR  Act  has  stringent  punitive  provision  for combating illegal mining. Provisions have been made for setting up of special courts for purpose of providing speedy trial of offences relating to illegal mining.

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