The Union Cabinet discussed extensively on the Mines and Minerals (Development and Regulation) Bill, 2011, before approving it, because several ministers insisted more consultations with the states were necessary before giving final nod.
A senior cabinet minister told Business Standard the Centre had asked all states to give their input on the Bill, but while some of them had responded others did not. “It was finally decided that there should be no more delay in clearing the Bill”.
The minister said the government had focused on balancing the rights of the local populace and the essential needs of natural resources in the Bill. The new MMDR Bill, 2011, aims to introduce a better legislative environment for attracting investment and technology upgrade in the mining sector.
It provides a roadmap for sustainable and scientific mining through a sustainable development framework and consultation with local community before notifying an area granting concession, and for approval of mine closure plans.
The government had constituted a high level committee (HLC) in 2006, which suggested evolving a mining code that would adopt best international practices, streamlining and simplifying procedures for grant of mineral concessions to reduce delays. Based on the HLC recommendations, the government had announced the National Mineral Policy on March 13, 2008.
To give effect to the policy directions in NMP, it evolved the MMDR, 2011, Bill, after several rounds of consultations with all stakeholders, including state governments, concerned ministries and departments of the central government, industry and civil society.
The Bill was referred to a Group of Ministers (GoM) on June 14, 2010, which, after five rounds of discussions, had recommended the draft Bill to the Cabinet. The GoM in its meeting held on July 7, had recommended the draft MMDR Bill, 2011 should be tabled in Parliament.
