Lok Sabha Question No. 3371 (UNSTARRED), answered on 2023-08-09
Subject: Self Reliant in Minerals
Ministry: MINES
Asked by: Ranjanben Dhananjay Bhatt

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOKSABHA

## UNSTARRED QUESTION NO. 3371 ANSWERED ON 09.08.2023

## SELF RELIANT IN MINERALS

†3371. SHRIMATI RANJANBEN DHANANJAY BHATT:

Will the Minister of MINES be pleased to state:

- (a) whether  the  Government  proposes  to  become  self-reliant  with  regard  to minerals;
- (b) if so, the steps proposed to be taken by the Government in this regard; and
- (c) if not, the reasons therefor?

## ANSWER

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

(a) to (c): Yes, Sir. Central Government has made several policy reforms to boost the mineral production in the country and make the country self-reliant in mineral sector. In this regard the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 has been amended several times. Details of some of the important reforms are:

In order to address the issue of decline in production of minerals in the country the MMDR Act was amended in 2015 with the following objectives.

- (i) Eliminating discretion;
- (ii) Improving transparency in the allocation of mineral resources;
- (iii) Simplifying procedures;
- (iv)Eliminating  delay  in  administration,  so  as  to  enable  expeditious  and  optimum development of the mineral resources of the country;
- (v)  Obtaining  for  the  government  an  enhanced  share  of  the  value  of  the  mineral resources of the country; and
- (vi) Attracting private investment and the latest technology.

The MMDR  Amendment  Act,  was  further  amended  in  2021  to  fully  harness  the potential of the mineral sector, increase employment and investment in the mining sector  including  coal,  increase  the  revenue  to  the  States,  increase  the  production and time bound operationalisation of mines, maintain continuity in mining operations after  change  of  lessee,  increase  the  pace  of  exploration  and  auction  of  mineral resources  and  resolve  long  pending  issues  that  have  slowed  the  growth  of  the sector.

Further,  Mines  and  Minerals  (Development  and  Regulation)  Amendment  Bill,  2023 has  been  passed  by  the  Lok  Sabha  on  28.07.2023  and by  Rajya  Sabha  on 02.08.2023, which proposes to amend the MMDR Act, 1957 to introduce exploration licence for deep-seated and critical minerals such as gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, diamonds, etc. which are mentioned in the 7th  schedule  of  the  MMDR  Act.  Exploration  licence  granted  through  auction  shall permit  the  licencee  to  undertake  reconnaissance  and  prospecting  operations  for critical and deep seated minerals mentioned in the new Seventh Schedule to the Act. The  exploration  licence  would  facilitate,  encourage  and  incentivize  private  sector participation  in  all  spheres  of  mineral  exploration  for  critical  and  deep  seated minerals.

The  MMDR amendment Bill 2023 further omits six minerals including Lithium bearing  minerals  from  the  list  of  atomic  minerals  specified  in  Part-B  of  the  First Schedule to the Act. These minerals have various applications in sectors such as space, electronics, communications, energy, electric batteries and are critical in netzero  emission  commitment  of  India.  Due  to  their  inclusion  in  the  list  of  atomic minerals, their  mining  and  exploration  was  reserved  for  government  entities.  Upon removal of these minerals from Part-B of first  schedule,  exploration  and  mining  of these minerals will be opened up for the private sector as well.  The minerals which are  removed  from  the  list  of  atomic  minerals  along  with  certain  other  critical  and strategic mineral is now included in the new part of the first schedule of the Act and the power to auction these mineral is vested with the Central Government. However, revenue from such auctions will accrue to the State Government only. As a result, exploration and mining of these minerals is expected to increase significantly in the country.

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