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The Mineral Laws (Amendment) Bill, 2020
March 15 , 2020
1637 days
810
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- The Bill amends the Mines and Minerals Development and Regulation Act, 1957 (MMDR Act) and the Coal Mines (Special Provisions) Act, 2015 (CMSP Act).
- The MMDR Act regulates the overall mining sector in India.
- This will speed up the process of implementation of projects, ease of doing business, simplification of procedure and benefit all the parties in areas where minerals are located.
- In August 2019, the government announced 100 per cent foreign direct investment (FDI) under the automatic route in coal mining for open sale, besides creating associated infrastructure, such as washeries.
- This opens up the sector to players outside steel and power as well as removes end-use restrictions.
- It will create an efficient energy market and bring in more competition as well as reduce coal imports.
- India imported 235 million tonnes (mt) of coal last year, of which 135 mt valued at Rs 171,000 crore could have been met from domestic reserves.
- It might also put an end to Coal India Ltd’s monopoly in the sector.
Under the Bill
- Currently, separate licenses are provided for prospecting and mining of coal and lignite, called prospecting license, and mining lease, respectively.
- The bill adds new type of license that is allocation of coal/lignite blocks for composite prospecting licence cum mining lease.
- Companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by the central government.
- The Bill clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks.
- The Bill provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.
- During this period, the new lessee will be allowed to continue mining operations.
- Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period.
- The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.
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