Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi says, existing captive mines have been allowed to sell up to 50% of the minerals produced after meeting the requirement of linked plants and on payment of additional amount to State Government

New Delhi : The Ministry of Mines has amended the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957) through the MMDR Amendment Act, 2021 with effect from 28.03.2021 with the objective of inter alia increasing mineral production and time bound operationalization of mines, increasing employment and investment in the mining sector, maintaining continuity in mining operations after change of lessee and increasing the pace of exploration and auction of mineral resources.

The reforms inter-alia include the following:

(i) Removal of distinction between captive and non-captive mines by mandating auction of mineral blocks without any end use restriction. Further, existing captive mines have been allowed to sell up to 50% of the minerals produced after meeting the requirement of linked plants and on payment of additional amount to State Government.

(ii) Provision has been made for transfer of valid statutory clearances in relation to a mine which is expiring or terminated to the successful bidder of such mine in auction.

(iii) Restrictions on transfer of mineral concessions for non-auctioned mines have been removed.

(iv) Private exploration agencies which have been accredited are allowed to carry out exploration without prospecting licence upon their notification. These agencies have also been made eligible for obtaining funding under National Mineral Exploration Trust (NMET).

These reforms will help in achieving self-reliance in mineral needs of the country under AtmaNirbhar Bharat Abhiyan.

This information was given by the Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Rajya Sabha today.

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