Lok Sabha Question No. 2378 (UNSTARRED), answered on 2023-03-15
Subject: Liberalization of Mines
Ministry: MINES
Asked by: Jagannath Sarkar

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2378

ANSWERED ON 15.03.2023

## LIBERALIZATION OF MINES

†2378. SHRI JAGANNATH SARKAR:

Will the Minister of MINES be pleased to state:

- (a) whether improvement has been made by the Government in liberalisation of mines in the country and if so, the details thereof;
- (b) whether the Government is focusing on various high priority aspects of mining which include  exploration,  ease  of  doing  business,  policy  framework  for  sustainable  mining, critical  minerals  and  rare  earth  space  including  new  opportunities  of  exploring  urban mining; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a)  to  (c):  Yes,  Sir.  The  Ministry  of  Mines  has  amended  the  Mines  and  Minerals (Development  and  Regulation)  Act,  1957  (MMDR  Act,  1957)  through  the  MMDR Amendment  Act,  2021  with  effect  from  28.03.2021  with  the  objective  of  inter  alia increasing  mineral  production  and  time  bound  operationalization  of  mines,  increasing employment  and  investment  in  the  mining  sector,  maintaining  continuity  in  mining operations after change of lessee and increasing the pace of exploration and auction of mineral resources.

The reforms inter-alia include the following:

- (i) Removal of distinction between captive and non-captive mines by mandating auction of mineral blocks without any end use restriction. Further, existing captive mines have been allowed to sell up to 50% of the minerals produced after meeting the requirement of linked plants and on payment of additional amount to State Government.
- (ii)  Provision  has  been  made for  transfer  of  valid  statutory  clearances  in  relation  to  a mine which is expiring or terminated to the successful bidder of such mine in auction.
- (iii) Restrictions on transfer of mineral concessions for non-auctioned mines have been removed.

(iv) Accredited  private  exploration  agencies  which  have  been  notified  under  second proviso  to  Section  4(1)  of  the  MMDR  Act  have  been  allowed  to  carry  out  exploration without prospecting licence. These agencies have also been made eligible for obtaining funding under National Mineral Exploration Trust (NMET). So far, 14 accredited private exploration agencies have been notified.

In addition to the above reforms, several others policy initiatives have been taken up by the  Ministry  to  promote  'Ease  of  Doing  Business',  expedite  auction  of  mineral  blocks and increase the pace of exploration of minerals. These reforms include, simplification of  exploration  norms  for  auction  of  mineral  blocks;  enabling  any  person  to  submit  a proposal to the State Government for notification of  an area for auction of composite licence; incentive for  production &  dispatch earlier than the  scheduled  date  of commencement of production; cap on net worth requirement for participating in auction of mining lease and composite license; decriminalization  of  offences of minor nature; and  allowing  GPS  for  identification  and  demarcation  of  the  area  where  a  composite licence is proposed to be granted through auction.

Ministry  of  Mines  has  implemented  Sustainable  Mining  by  making  provisions  under Chapter-V of Mineral Conservation and Development Rules (MCDR), 2017. Rule 35 of MCDR provides for star rating of the mining leases based on the sustainable mining practices adopted by the miners.

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