Caution is the buzzword for the NDA Government as far as dealing with any decision which has the stamp of UPA's legacy on it is concerned. The new Mines Minister Narendra Singh Tomar is keen on seeking fresh opinion on the clause in the Mining Bill which advocates giving out leases through competitive bidding. According to sources familiar with the developments, the ministry could tweak this provision before introducing the Bill afresh in Parliament.
Tomar, sources told The Pioneer, is said to have discussed the issuance of mining leases within the ministry. He is learnt to have sought opinion of his officials on giving out leases through competitive bidding, however, he was advised against it, and consequently the ministry now plans to move a cabinet note seeking views of stakeholders on whether this specific provision of the Mining Bill - technically known as Mines and Minerals (Development and Regulation) Bill, can be reworked.
The minister was apparently told that issuing mining leases through competitive bidding is something which is not prevalent globally, as without having an idea about the exact quantity of minerals held by a mine, it is virtually impossible to lease it out through bidding.
After the Mines and Minerals (Development and Regulation) Bill got lapsed as the UPA Government failed to get it cleared in Parliament during the 15th lok Sabha, the new BJP-led NDA regime now plans to introduce it again in Parliament, but only after having a re-look at its various aspects, including the clause on issuance of mining leases through competitive bidding.
It was on this very clause of the Bill on which the UPA Government had sought the opinion of the law Ministry not once, but thrice. However despite being told to award leases on the prevalent 'first come first serve' basis, it chose not to give out any lease at all.
The genesis behind UPA Government's indecisiveness on the matter had its genesis in the February 2012 decision of the Supreme Court, when it had cancelled all 122 telecom licences which were allotted to 11 companies during the tenure of former Telecommunications Minister A Raja (during UPA-I regime). A shaken Mines Ministry had then sought the law Ministry's view on whether it should continue with the "first-come-first-serve norm" followed by it while granting mining leases. It went on to seek the opinion from the law Ministry on the same issue on two more occasions, and ceased the distribution of leases.
In fact highly placed sources had earlier told this newspaper about how due diligence would be done by the Government before handing out new leases, which would include complete background check of those seeking these leases, in consultation with the Ministry of Environment and Forests (MoEF).
In April this year, the Supreme Court had allowed resumption of iron ore mining in Goa but only after putting strictures like miners maintaining an annual excavation cap of 20 million tonnes and that the State Government will have to issue mining leases.
With the Mines Ministry under the new NDA regime seemingly in the mood of applying caution in the matter, sources pointed out issuance of new mining leases will take some time to come, as there is a likelihood of the Mining Bill undergoing some changes, especially the clause related to issuance of leases through competitive bidding, sources said.