After having moved at a snail’s pace in terms of giving away mining leases since 2012, the Mines Ministry is now dealing with only those applicants who are seeking to mine in notified areas.
There are only around 100-odd such applications and according to official sources, this will help the Government increase its rate of awarding leases from the next fiscal, as it has recently sent back around 200 applications seeking to mine in non-notified areas (which is beyond the area specified for mining), which had slowed down the entire process.
Till last month, the Mines Ministry had to deal with three sorts of applicants seeking mining leases - those wanting to mine notified areas, the second category was of those applicants who were given leases due to ‘Special Reasons’ (as per powers vested with States), and thirdly those entities who wanted to mine in non-notified areas.
Due to this, and also because of the cautious approach of the previous UPA regime (which in the aftermath of the cancellation of 2G licences by the Supreme Court, considerably slowed down the rate of giving mining leases), the Mines Ministry managed to dole out only 40-odd leases annually since 2012-13.
As reported by The Pioneer on September 30, Mines Minister Narendra Tomar, concerned with the slow pace of awarding leases, had sent back 200 applications dealing with ‘Special Reasons’ as well as non-notified category cases, to their respective States. Now the Central Mines Ministry is only dealing with applications seeking to mine notified areas, which are only 100-odd in numbers and by the beginning of the next financial year, sources pointed out that the Centre may increase the rate of giving away leases.
Currently around four leases a month are given out, and this rate may considerably increase in 2015-16 as now the Mines Ministry only will give leases to those applicants who want to mine in notified areas.
The criterion for giving leases to those seeking to mine notified areas are clearly listed in the Mines and Minerals (Development and Regulation) Act 1957 or the Mining Act, according to which the applicant should have sound technical know-how in the field of mining, should have adequate financial strength as well as rich experience in dealing with the procedure.
Though these rules are in place, Tomar had initiated the process of consulting mineral rich states on whether these leases (for notified areas) could be given away through the auction route after amending the Mining Act. Sources informed that the consultations are almost over and all the states have sent their feedback to the Mines Ministry on whether amendments are needed on this aspect in the Act or not.
They added that the Mines Ministry may introduce the amended Mining Bill in the Winter session of Parliament which is scheduled to be held in November-end. Once there is clarity on the format of the Bill, the process of awarding mining leases is likely to be expedited. Its real impact though will be felt only in the next fiscal, sources said.
The much delayed MMDR (Amendment) Bill 2011 could not be moved during the Monsoon session (which was the first session of the newly elected 16th lok Sabha) as several amendments were suggested in it by a Parliamentary panel which delayed its passage in Parliament, even though it had been introduced in 2011. It subsequently got lapsed with the dissolution of the 15th lok Sabha.