INDIA
prescribed the condition to rationalise the coal sector for mining operations, consumption and sale.
Debate: The Bill had in-depth deliberations in both Houses of Parliament. Some of the issues which emerged were: •
• •
the State Governments should be given priority during allocation of coal blocks.
there need to be provisions for addressing concerns of Scheduled Tribes and farmers. The Minister in-charge of the Bill assured to address concerns of the Members. The Minister stated that the Government would like to see Coal India as a single company. Through restructuring, the Government would introduce new technology, increase production, make operations smooth and increase the safety standards as well as the wages of the workers. The Minister assured that the Government in the coming days would work out ways to provide better facilities to the workers and those displaced. The Minister also assured that all the decisions of the Government have been taken with the coordination of Ministries of Steel, Commerce, Mines, Law and Finance. The Minister also assured that suggestions of members would also be implemented. The Bill was passed by Lok Sabha on 4 March 2015 and by Rajya Sabha on 20 March 2015. The Bill as passed by both Houses of Parliament was assented to by the President of India on 30 March 2015.
The Mines and Minerals (Development and Regulation) Bill, 2015 The Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act) is the Central Act which governs the development and regulation of mines and minerals in terms of the powers vested in the Central Government. The provisions of the MMDR Act extend to the whole of India. State Governments have to regulate the mines and minerals in terms of the MMDR Act. The Act had been amended several times over the years, notably in 1972, 1986, 1994 and 1999. With a view to comprehensively amending the law governing the mineral sector, the Mines and Minerals (Development and Regulation) Bill 2011 (MMDR Bill, 2011) was introduced in the Lok Sabha on 12 December 2011. Extensive
the issue of the problem of land acquisition after auction of mines needs to be addressed.
consultations preceded the finalization of the draft of the Bill. It was, thereafter, intensively scrutinized by the Standing Committee on Coal and Steel who gave their Report in May 2013. However, the Bill could not be passed before the dissolution of the 15th Lok Sabha and consequently lapsed. The mining sector had been subjected to numerous litigations in the past few years. Important judgements related to the mining sector had been pronounced by the Supreme Court, besides judgements on the issue of allocation of natural resources which have direct relevance to the grant of mineral concessions.
The present legal framework of MMDR Act 1957, does not permit the auctioning of mineral concessions. Auctioning of mineral concessions would improve transparency in allocation. It emerged that the Government would also get an increased share of the value of mineral resources. Some provisions of the law relating to renewals of mineral concessions had also been found to be wanting in enabling quick decisions. Consequently, there had been a slowdown in the grant of new concessions and the renewal of existing ones. As a result, the mining sector started registering a decline in production affecting the manufacturing sector which largely depends on the raw material provided by mining sector. The Government had, therefore, felt it necessary to address the immediate requirements of the mining sector and also to remedy the basic structural defects that underlie the current impasse.
In view of the urgent need to address these problems, the Mines and Minerals (Development and Regulation) Amendment Ordinance 2015 was promulgated on 12 January 2015. Consequently, the Government brought forward the Mines and Minerals (Development and Regulation) Amendment Bill 2015. This Ordinance replacing Bill was designed to put in place mechanism for: (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.
Salient Features of the Bill: In the Ordinance replacing Amending Bill, the key provisions which have been made as under: •
Removal of discretion; auction to be sole method of allotment: The amendment seeks to bring in utmost transparency by introducing auction mechanism for the grant of mineral concessions.
•
Impetus to the mining sector: The mining industry has been aggrieved due to the second and subsequent renewals remaining pending. In fact, this has led to closure of a large number of mines. Provisions have been made that mining leases would be deemed to be extended from the date of their last renewal to 31 March 2030 (in the case of captive mines) and until 31 March 2020 (for the merchant miners) or until the completion of the renewal already granted, if any, or a period of fifty years from the date of grant of such leave, whichever is later.
•
Safeguarding interest of affected persons: There is provision to establish District Mineral Foundation in the districts affected by mining related activities.
•
Provisions have been made with regard to encouraging exploration and investment: It has been provided to set up a National Mineral Exploration Trust created out of contributions from the mining lease holders, in order to have a dedicated fund for encouraging exploration in the country.
•
Stronger provisions have been provided for checking illegal mining
Debate: There had been a constructive debate on the Bill in both Houses of Parliament. Members dwelt upon in-depth and critical details pertaining to the measure. The Minister in-charge of the Bill stated that the Bill will end discretionary powers completely, there would be transparency in the allocation, mining activities would get an impetus and exploration would be speeded up. The Bill was passed by Lok Sabha on 3 March 2015 and by Rajya Sabha on 20 March 2015 (Amendments made by Rajya Sabha were agreed to by Lok Sabha on 20 March 2015). The Bill as passed by both Houses of Parliament was assented to by the President of India on 26 March 2015.
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