A mining industry body has pitched for immediate extension of leases of more than 300 non-captive mines until March 2030, expressing fear that the sector may face a crisis-like situation post expiry of licences of these mines next year.
In a presentation before a high-level committee of Niti Aayog, the Federation of Indian Mineral Industries (FIMI) has said that the crisis situation in the mining industry developed following the amendment in the MMDR Act, 1957, in January 2015 that provided for auction as the sole mode of granting concessions for a fixed period of 50 years to private companies - captive and non-captive.
NITI Aayog last month set up a high-level committee on mines, minerals and coal sectors to identify key challenges and negate their impact. The committee has representation from private sector besides officials from steel, coal and mines ministries besides public sector mining companies.
FIMI in the presentation to the Aayog noted, "Government companies - Centre or State - allowed extension of existing leases for a period of 20 years at a time beyond stipulated period of 50 years."
This will therefore lead to litigation and chaos and disruption of raw