The mines and minerals bill approved by parliament on Friday got high acceptance from the industry stakeholders who felt it will bring much needed transparency in the allocation process and give a boost to the mining sector.
"This will bring in much needed transparency in the allocation process and kick-start the mining sector which was languishing for want of clear guidelines," Chandrajit Banerjee, director general, Confederation of Indian Industry said in a statement here.
"The bill will pave the way for restarting mining in the country, thereby easing the pressure on availability of raw material, so vital for many key sectors that provide inputs to manufacturing," he added.
The bill was first put for voting in the Rajya Sabha after debate and 117 members were in its favour and 69 against it, but not before Steel and Mines Minister Narendra Singh Tomar moved two amendments, based on the suggestions of the relevant select committee.
Accordingly, it was taken up again by the Lok Sabha -- which had already passed its original form on March 3 -- and it was again okayed by a voice vote after a brief discussion.
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Industry body Assocham said passage of the bill showed that despite tough posturing, political parties were behaving in a very mature way when it comes to key economic reforms.
"Once enacted, it would increase transparency and end discretion in the auction mines, besides it would augment mines' productivity," Rana Kapoor, president of Assocham said.
"Now there is a likelihood of increase in production of iron ore that will domestic steel industry as augmenting steel production capacity is crucial for growth and development of the manufacturing sector," he added.
Primarily, the new bill seeks to introduce a regime of auction to grant prospecting licences, like for coal blocks. It proposes that there will no renewal of mining concessions, unlike the original act of 1957. But it proposes a licence for 50 years as against 30 now.
The government has already identified 199 mines for auction.
"The bill will facilitate auctions of mines that supply minerals like iron ore and bauxite which will bring down the costs of raw materials and boost business sentiments," Alok B. Shriram, president, PHD Chamber said.
