Lok Sabha Question No. 2576 (UNSTARRED), answered on 2024-12-11
Subject: Sustainable Mining Management
Ministry: MINES
Asked by: Shri Anil Firojiya

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2576

ANSWERED ON 11.12.2024

## SUSTAINABLE MINING MANAGEMENT

†2576. SHRI ANIL FIROJIYA:

Will the Minister of MINES be pleased to state:

- (a)  whether  the  Government  has  started  various  schemes  like  Sustainable  Mining Management and restoration of forest cover area to mitigate the environmental effects of mining resources;
- (b) if so, the details thereof;
- (c) whether various initiatives have been taken to encourage investment in the mining sector under Public-Private Partnership (PPP) model and bring improvement in the utility graph of mining resources and expansion; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

- (a) & (b): Ministry of Mines has implemented Sustainable Mining Practices by making provisions under Chapter-V of Mineral Conservation and Development Rules (MCDR), 2017.  Provisions  have  been  incorporated  in  the  rules  for  precaution  against  air pollution, prevention of discharge of toxic liquid, precaution against noise, control of surface subsidence etc.

Rule 35 of MCDR, 2017 provides for star rating of the mining leases based on the sustainable  mining  practices  adopted  by  the  miners.  The  star  rating  scheme  is designed  to  have  an  inbuilt  compliance  mechanism  for  environment  and  forest safeguards and has been helpful in recognizing good performers in the sector while encouraging all mining lease holders to strive for excellence.

Further, as per Rule 35 (4) of MCDR, 2017, every holder of a mining lease is mandated to  achieve  at  least  three-star  rating  within  a  period  of  four  years  from  the  date  of commencement of mining operations and thereafter maintain the same on year-onyear basis.

As per existing law, before execution of the mining lease, it is mandatory to obtain the requisite statutory clearances from various departments of the Central Government and respective State Governments, including Forest Clearance. As part of the Forest Clearance, the prospective lessee is required to undertake compensatory afforestation in lieu of the diversion of forest land for mining.

(c)  &  (d):  The  MMDR,  Act  1957  provides  for  auction  in  which  private  companies participate and obtain Mining Lease or Composite Licence of mineral blocks. Mining lease is given for fully explored blocks where the leaseholder has to invest in mine development to start mineral production. Composite licence is given for unexplored blocks where  the  licence  holder  has  to  invest  in  further  exploration  and  mine development to start mineral production

Further,  to  encourage  investment  in  exploration  of  29  critical  and  deep-seated minerals, a new mining concession called Exploration Licence has been introduced through  MMDR  Amendment  Act,  2023.  The  Exploration  Licence  is  given  through auction. Exploration Licence holder invests in exploration of in licenced area and is eligible  for  revenue  share  from  the  mine(s)  which  have  been  explored  by  the Exploration  Licence  holder  when  these  mine(s)  start  production  and  dispatch  of minerals.

There is a provision to reimburse part of the exploration expenditure incurred by the Exploration Licence holder under a scheme of NMET, if Exploration Licence holder so desires to reduce the risk taken. However, the amount spent by the NMET is required to be returned to NMET once mineral production starts from such mine(s).

*****