Promotion & Conversion of Vast Mineral Resources: Impact of Amendments to MMDR Act

Promotion & Conversion of Vast Mineral Resources: Impact of Amendments to MMDR Act

Question: The MMDR/Mines and Minerals (Development and Regulation) Act 1957 has been amended. Discuss how the amendments will promote and convert the vast mineral resources of India.

The amendments to the MMDR Act will help in promotion and conversion of the immense mineral resources of India in the following way:

• It removes discretion in the grant of mineral concessions; mineral concessions will now be provided through auction via competitive bidding

• Amendments also permit opening of mines previously closed due to decision pendency on applications for second/next renewal through extension of validity of lease period for existing leases

• Amendments also provide security of tenure of mining lease period with uniform lease period of 5 decades

• The procedure for requirement of prior approval of centre for grant of mining lease via auction has been simplified to prevent delays

• National Mineral Exploration Trust has been funded for augmenting mineral resources

• Easy transferability of mineral concessions are also granted through auctions which will impact investments in the mining sector

• Amendments also stipulate setting up of District Mineral Foundation to work for the interests and benefits of persons and/or areas affected by mining

Facts and Stats

• Centre has empowered states in respect of 31 minerals notified as minor minerals in 2015 for regulation of grant of mineral concessions and purposes connected to it

• National Mineral Policy holds that conservation of minerals is a positive concept pertaining to augmentation of reserve base via

• Enhanced mining methods, beneficiation, utilisation of low grade ore and recovery of associated minerals

• Beneficiation, calibration and other schemes have been proposed to boost the mining sector

• Government amended the Mines and Minerals (Development an d Regulation) MMDR Act 1957 through the MMDR Amendment Act 2015