The Ministry of Steel and Mines has stated that it has amended the Mines and Minerals (Development and Regulation) (MMDR) Act 1957, through the MMDR Amendment Act 2015 for promoting the mining sector.
Minister of State for Steel and Mines Vishnu Deo Sai gave this information in reply to a question posed in the Rajya Sabha on Wednesday.
The amendments would provide impetus to the sector by removing discretion in grant of mineral concessions, as mineral concessions will now be granted through auction by competitive bidding.
The amendment would also allow opening of mines which were closed due to pendency of decision on applications for second or subsequent renewal through extension of validity of lease period of the existing leases.
It would provide security of tenure of mining lease period with a uniform lease period of 50 years. It would also provide for simplification of procedure and removal of delay by eliminating requirement of prior approval of Central Government for grant of mining lease through auction.
The amendment would also establish National Mineral Exploration Trust, a dedicated fund to encourage exploration to augment mineral resources. It will allow easy transferability of mineral concessions granted through auction, which would facilitate investments into the mining sector.
The amendment aims to establish District Mineral Foundation, which will work for the interest and benefit of persons, and areas, affected by mining related operations.
The Central Government has further empowered State Governments in respect of 31 minerals, which have been notified as 'minor' minerals on February 10, 2015, for regulation of grant of mineral concessions and for purposes connected therewith.
