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The new ordinance for mines and minerals will enable setting up of special courts to deal with the cases of illegal mining on a fast-track basis, while offenders will face higher penalties and imprisonment.
Besides, it also seeks to empower the Centre to pass orders in case of delays by states, a source said while citing from the ordinance approved by the union Cabinet last evening.
The ordinance has also provided for creation of District Mineral Foundation, which would take care of people and areas affected by mining. A National Mineral Exploration Trust would also be set up for providing impetus to exploration.
"There are provisions for higher penalties and jail terms for offenders and special courts might be constituted to try the offenders," the source in the government said.
Mining leases would be granted through the auction route only for 50 years with no provisions for renewals. At the end of lease period, it would be auctioned once again.
"The move, aimed at solving problems which were arising out of the court judgements on second and subsequent renewals of mines, would thus go for ever," he added.
The Ordinance would pave the way for easy transferability of concessions obtained through auctions. Mines ministry hopes this provision would attract private investment and foreign direct investment (FDI) into the sector.
Though the mines sector has been opened up for foreign investments long back, it has not received any significant FDI so far.
"Enabling powers for reservation for the public sector to continue," he said.
Following the President's approval, the Centre would have the power to prescribe deadlines for various processes and to issue directions to states. The Centre has also been empowered to frame separate rules for leases of public sector units and for atomic minerals.
"Powers to Central Governments to intervene even where state governments do not pass orders within prescribed time lines would also be there. This will eliminate delay," he said.
