Business
Mining leases for minerals may soon go coal block auction way
New Delhi, March 20
The bill for development
of mines and minerals, to bring a regime of auctioning blocks for
prospecting, was passed by parliament on Friday even as opposition
parties, notably Congress and Left Front, demanded a re-look by the
select committee.
The bill was first put for voting in the Rajya
Sabha after debate and 117 members were in its favour and 69 against it,
but not before Steel and Mines Minister Narendra Singh Tomar moved two
amendments, based on the suggestions of the relevant select committee.
Accordingly,
it was taken up again by the Lok Sabha -- which had already passed its
original form on March 3 -- and it was again okayed by a voice vote
after a brief discussion.
Minister Tomar said he was happy that
the select panel made the suggestions, which the government accepted.
"These are good provisions. I am happy the Rajya Sabha endorsed it. But
basic thrust has not changed," he said.
Once the bill gets
presidential consent, the new legislation will replace the Mines and
Minerals (Development and Regulation) Amendment Ordinance of 2015),
promulgated on January 12.
Earlier, the select panel had sent
the bill back on March 18 without changes. But it wanted the government
to consider issues like impact of mining on the environment, illegal
mining, lack of scientific methods, land acquisition and resettlement
and use of windfall profits for local and tribal welfare.
Tomar
said the new bill takes into account most of the recommendations of the
select committee and will allow states to have a say in the auction and
all revenues will go to them. "Mining contributes over 2 percent to the
GDP, but is in deep crisis. It is one of the biggest employers. A
revival will give jobs to our youth."
He said there was also an
urgent need for a transparent system. Taking the example of iron ore
production, he said it was a matter of concern that its production had
declined to 152 million tonnes in 2013-14 from 218 million tonnes in
2009-10.
Primarily, the new bill seeks to introduce a regime of
auction to grant prospecting licences, like for coal blocks. It proposes
that there will no renewal of mining concessions, unlike the original
act of 1957. But it proposes a licence for 50 years as against 30 now.
The government has already identified 199 mines for auction.
The
proposed legislation also calls for the setting up of a District
Mineral Foundation where mining takes place that will address the
grievances of the people affected by mining, with a contribution not
exceeding a third of the royalty rate.
Another body, the
National Mineral Exploration Trust, shall be appointed by the central
government for regional and pan-India planning.
Some opposition
parties, led by the Biju Janata Dal, opposed it saying it infringed on
the rights of states -- a stand earlier supported by the Congress and
Trinamool Congress. The opposition had also prevented its introduction
in the Rajya Sabha where the treasury is in minority.
But on Friday, the Trinamool Congress, Biju Janata Dal and Samajwadi Party supported it.
Among
its other salient features, the new act, once in force, will add a new
schedule to include mining of bauxite, iron ore, limestone and manganese
ore, now called notified minerals, under its purview.
The new
act will call for state governments to grant mining leases and
prospecting license-cum-mining leases for notified and other minerals,
with the central government's approval, which will prescribe the terms
and conditions for selection of bidders as also the procedure for
auction.
The central government may also reserve some mines
exclusively for some specific purposes, as also set the eligibility
conditions for the same.
To plug another loophole that leads to
arbitrariness, the central government will be permitted to increase the
area allowed for mining, instead of granting additional leases.
Presently, while 10 sq km is set as maximum limit for prospecting per lessee, a leeway is given to alter this.