Centre announces revised minerals concession rules

The government has declared the revised minerals concession rules that will pave the way for the sale of 50% of minerals generated from captive mines, transfer of mines without any costs and partial surrender of a lease.

Several revisions were made in the Mines and Minerals (Development and Amendment) Act, 1957 (MMDR Act) earlier this year. The modifications were aimed at boosting employment and investment in the mining sector, growing revenues to states, increasing the production and time-bound operationalisation of mines, among other goals.

As per an official statement released on Tuesday, the mines ministry has announced the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 to revise the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 (MCR, 2016).

The new rules have been composed after comprehensive consultations with state governments, miners, industry associations, other stakeholders and the general public.

With the revised rules, the government has paved the way for releasing additional minerals in the market by better utilisation of mining capacities of captive mines. It additionally renders for how 50% of the mineral generated from the captive mines can be sold. The allowance for sale of the prescribed quantity of mineral shall additionally motivate the lessees to improve the production from the captive mines, the statement said.

Additionally, additional premium amount, royalty and other statutory payments in respect of the quantity sold will enhance the revenue of the state governments.

Provisions have additionally been added to allow the disposal of overburden or waste rock or mineral below the threshold value, which is generated during mining or beneficiation of the mineral. The minimum area for the award of mining lease has been updated from 5 ha. to 4 ha.

For certain specific deposits, minimum 2 ha. is rendered. Part surrender of the mining lease area has been enabled in all cases. Till now, part surrender was enabled only in case of non-grant of forest clearance.

The amended rules additionally allow the transfer of composite license or mining lease of all types of mines. New rules included rendering for mutation of ML or CL in favour of legal heirs on the death of the lessee or licensee. Interest on delayed payments revised from existing 24% to 12%.

Rules concerning the period of mining lease awarded to government firms and their payments have been incorporated in the MCR, 2016, it added.

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Also read: Amendment in Mining Act: A step towards building self-reliant India