Lok Sabha passed bill to amend the Mines and Mineral Act

The Lok Sabha passed a Bill to amend the Mines and Mineral (Development and Regulation) Act (MMDR Act) through a voice vote, with Mines Minister Pralhad Joshi stating that the amendments will create jobs and allow private players with enhanced technology into the mining sector.

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The amendment proposes to allow captive miners of both coal and other minerals to sell up to 50 per cent of their production after meeting the requirements of the end-use plant and on paying additional royalty to the state government.

Operators are currently only allowed to use coal and minerals extracted from captive mines for their own industrial use. This increased flexibility would allow miners to maximise output from captive mines as they would be able to sell output in excess of their own requirements.

The amendment also proposes to fix additional royalty payments to states for the extension of mining leases for central public sector enterprises.

The Bill also proposes to empower the central government to conduct auctions or re-auction processes for the grant of a mining lease if a state government fails to complete the auction process in a specified period, decided after consultations between the Centre and state.