Mines and Minerals (Development and Regulation) Amendment Bill, 2015, provides for the same amount of royalty payable by existing lease holders in the District Mineral Fund (DMF) and one-third of the royalty for those who will get mines after the enactment of the new law.
Provision for payment towards DMF was not there in the 1957 Act of the same name which would be replaced by the new Act. Thus, this is an additional burden for the miners, who now pay between Rs 8 and Rs 27 per tonne.
With the prevailing subdued global commodity prices, the price of raw materials, especially of iron ore, has fallen so much that users might resort to more imports if the domestic prices do not match and as a result, mining activity can also hamper, an industry sources said.
However, they were happy with the fact that at least the new bill will bring in transparency in the allocation of mines which was so far given through the dispensation route.
Steel and Mines Minister Narendra Singh Tomar however said that the new bill will bring a revolutionary change into the sector which was plagued by different issues including ban on mining.
"Apart from ushering in transparency in mines allocation process, the Bill will bring in a revolutionary change in the sector. It will also attract more investment to the sector, enhance expertise and income of those employed with the sector," Tomar had said.