The Centre is set to place the amendment bill to the Mines and Minerals (Development and Regulation) or MMDR Act, 1957, in the winter session of Parliament, Coal Minister Sriprakash Jaiswal said here today.
The amendment when it comes into force will allow the government to introduce some structural reforms in the mining sector and bring in a regulator to overcome delays in the current system that in turn will attract Private investment in a bigger way.
There are, however, differences between the steel and mines ministries on amending the existing MMDR Act over retention of exclusive mining rights.
Jaiswal said the proposed regulator may be entrusted to look into coal pricing issues.
The amendment will also introduce competitive bidding for allocation of coal blocks - a move that would benefit consumer industries like power and steel.
Jaiswal said the reforms will help in inviting investment from both private and public sectors to the tune of $8-10 billion in the next 5-6 years.
The Act governs the process of exploration, mining and allotment of coal and lignite blocks in the country.
