Lok Sabha Question No. 48 (STARRED), answered on 2025-07-23
Subject: Merger of IREL, HCL and NALCO
Ministry: MINES
Asked by: Dr. Pradeep Kumar Panigrahy

GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA STARRED QUESTION No. * 48

ANSWERED ON 23.07.2025

## MERGER OF IREL, HCL AND NALCO

*48. DR. PRADEEP KUMAR PANIGRAHY:

Will the Minister of MINES be pleased to state:

(a)  whether the Government is considering a merger of Indian Rare Earth Limited (IREL), Hindustan Copper Limited (HCL) and National Aluminium Company Limited (NALCO) into a 'National Critical Minerals Corporation' to compete globally as China's dominance  comes  from  state-backed  monopolies  like  China  Minmetals,  if  so,  the details thereof and if not, the reasons therefor; (b)  whether the Shah Commission revealed systemic fraud like fake transportation permits, under-invoiced exports and bribed officials and if so, the details thereof; and (c) the details of systemic reforms like blockchain-based mineral tracking, AI-powered satellite audits the Government is implementing / proposes to implement to prevent this elsewhere?

## ANSWER

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

(a) to (c) A Statement is laid on the Table of the House.

## STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO. *48 FOR ANSWER ON 23.07.2025 ASKED BY DR. PRADEEP  KUMAR  PANIGRAHY  REGARDING  MERGER  OF  IREL,  HCL  AND NALCO

- (a) There is no such proposal under consideration of the Ministry.
- (b) The Central Government, vide Notification No. S.O. 2817 (E) dated 22.11.2010, appointed Commission of Inquiry under the Chairmanship of Justice M. B. Shah for the  purpose  of  making  inquiry  of  illegal  mining  of  iron  ore  and  manganese  ore  in contravention  of  the  provisions  of  the  Mines  and  Minerals  (Development  and Regulation)  Act,  1957,  the  Forest  (Conservation)  Act,  1980,  the  Environment (Protection)  Act,  1986  or  other  rules  or  licences  or  guidelines  issued  thereunder referred to as illegal mining. The Justice M.B. Shah Commission submitted the report to the Ministry of Mines, which was subsequently laid in the Parliament.  The report of Shah Commission of Inquiry and Memorandum of Action Taken on the reports are available  on  the  website  of  the  Ministry  of  Mines  in  the  Policy  Menu.  Web  link: ( https://mines.gov.in/webportal/shahcommissioninquiry )
- (c)      The  Section  23C  of  the  Mines  and  Minerals  (Development  and  Regulation) (MMDR) Act, 1957 empowers the State Government to frame rules to prevent illegal mining, transportation and storage of minerals and for purposes connected therewith. Therefore, the control of illegal mining,  transportation  and  storage  of minerals  and purposes connected therewith is primarily the responsibility of the State Government. The  Central  Government  supports  and  augments  these  efforts  through  policy initiatives from time to time. Some of the steps taken by the Central Government for the prevention and control of the frauds like fake transportation permits, under invoiced exports etc. are as under:
- (i)        The  MMDR  Act,  1957  was  amended through the MMDR (Amendment) Act, 2015, wherein Section 30B and 30C read with Section 21 and 23C, inter-alia, provide stringent punitive provisions for illegal mining, transportation and storage.
- (ii) Altogether, 21 State Governments namely, Andhra Pradesh, Bihar, Chhattisgarh,  Goa,  Gujarat,  Haryana,  Himachal  Pradesh,  Jammu  &  Kashmir, Jharkhand,  Karnataka,  Kerala,  Madhya  Pradesh,  Maharashtra,  Nagaland,  Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand, and West Bengal; have framed  rules under  section 23C  of MMDR  Act,1957  to  curb  illegal mining, transportation and storage of minerals.
- (iii)        Altogether,  22  State  Governments  namely,  Andhra Pradesh,  Assam,  Bihar, Chhattisgarh, Goa,  Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Madhya  Pradesh,  Maharashtra,  Manipur,  Mizoram,  Nagaland,  Odisha,  Punjab,

Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal; have set up Task Forces, specially constituted to control illegal mining and review the action taken by member departments for checking the illegal mining, transportation and storage activities.

(iv)       The Ministry of Mines has launched the Mining Surveillance System (MSS) in October 2016 through IBM. The MSS system detects likely incidences of illegal mining using space technology. The triggers generated are sent to State Governments for verification and further action.

(v)        The Ministry of Mines also issued guidelines on 03.10.2023 to major mineral rich States for prevention of misclassification of grades of iron ore and other minerals by using technology. The State Governments were requested to implement the said guidelines  by  suitably  incorporating  the  same  in  the  rules  framed  by  the  State Governments  under  Section  23C  of  the  MMDR  Act,  1957.   The  said  guidelines envisage the use of block chain technology for tracking of minerals during complete value  chain  including  self-declaration  of  grades,  tracking  of  transport  vehicles, automation of invoice reconciliation etc.

*****