Amendments to mining laws get Cabinet nod
COAL & MINING

Amendments to mining laws get Cabinet nod

The Union Cabinet recently approved a reform package for the mineral and mining sector that would involve amendments to three existing laws, pricing formula for minerals, exploration of mines and several taxes and duties levied on mining.Chaired by Prime Minister Naren...

The Union Cabinet recently approved a reform package for the mineral and mining sector that would involve amendments to three existing laws, pricing formula for minerals, exploration of mines and several taxes and duties levied on mining.Chaired by Prime Minister Narendra Modi, the Cabinet approved structural reforms in the mining sector through legislative amendments to the Mines and Minerals (Development and Regulation) (MMDRA) Act 1957. Officials claim this will boost production and private investment in the sector.Under the proposed reforms, captive mines would now be allowed to sell 50 per cent of the minerals excavated in a year. The Centre has also proposed to give 50 per cent rebate in the quoted revenue share for the quantity of mineral produced and dispatched earlier than the scheduled date of production.The Cabinet also approved comprehensive licensing for exploration and production, clarity in illegal mining, the national mineral index and joint auctions of bauxite and coal mines for the aluminium sector.Here are the amended laws:1. The Centre has proposed the amendment of section 10A(2)(b) and 10A(2)(c) of the MMDRA to unlock more mines for auctioning. This would involve the Centre auctioning pending mining leases as well. Section 10A(2)(b) pertains to the leases where reconnaissance permit (RP) or prospecting licence (PL) were granted, and 10A(2)(c) relates to grant of mining leases (ML).2. The Indian Stamp Act 1899 will also be amended by the Centre as part of the mining reforms to bring uniformity across states in the calculation of stamp duty. A committee will also be set up to resolve the issue of ‘double taxation’ in the mining sector.3. The MEMC Rules (Minerals (Evidence of Mineral Contents) Rules, 2015) will be amended by the Government to include globally accepted classification standards like JORC, CRIRSCO, etc, and the latest UNFC classification.The amendments that are now to be laid before Parliament in the budget session eliminate the distinction between captive and non-captive mines, allowing the transfer of mining leases.To share your perspective on current industry happenings, write in at feedback@ConstructionWorld.in

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