The Government is keen that the Mines and Minerals (Development & Regulation) Amendment Bill 2015 - which was introduced in lok Sabha on Tuesday - gets cleared during the ongoing Budget session, as once this is done, it would help insulate the entire process of issuance of mining leases from unnecessary pulls and pressures from various lobbies within the mining sector, as it entails auction of mining leases.
The Mines and Minerals (Development and Regulation) Amendment Bill 2015 seeks to replace an ordinance which was promulgated last month. Sources privy to the development told The Pioneer, that due to immense pressure from the mining lobby, which was keen to insert various clauses to suit their own interests, its earlier version, the MMRDA Bill 2011 could never see the light of the day and remained stuck with the Parliamentary Standing Committee.
The Parliamentary panel suggested several amendments in the bill, which delayed its introduction and passage in the Parliament and it subsequently got lapsed with the end of the tenure of the 15th lok Sabha. The Mines Ministry therefore decided to bring in the ordinance with stringent clauses which would not only help in protecting the legislation from unnecessary demands from the industry, but also lead to fast tracking of the entire process of giving away leases through auction.
For instance, a section of the mining industry, in fact was keen that the transition period (the intervening period when the mining lease expires and when it gets renewed) should be extended to 15 years for lease holders which held the right of mining for captive purpose as well as for those which held the reserves for merchant usage.
Sources pointed out that the ordinance entails a provision (which is an amendment in Section 8 of the original MMDR Act 1957) that allows an extension of lease of mines held for captive purpose, for 15 years. While the extension of lease for mines meant for merchant use has been provided for 5 years.
These extensions are to be granted for those leases which had been issued before the date of the commencement of the Mining ordinance. Once the ordinance becomes a law, these provisions will come into force and the Government will get a free hand to implement the said provision.
The mining industry by seeking 15 years extension of the transition period, wanted the process of renewal of leases to stretch on unnecessarily, so that they can sit on the mines during the intervening period. The ordinance, sources said, has put an end to such a practice.
The extension of 15 years has been given for mines meant for captive usage because the lease holder in such cases, has invested a lot of capital on the plant for which the mine has been assigned. Therefore in case the lease expires, sufficient time, it was thought, should be given for the holder to mine the reserve, till the time the renewal is granted, sources pointed out.
Similarly there was pressure from the mining industry that with more than 60,000 requests for seeking leases pending with the Government for want of various approvals (mainly environmental clearances), a saving clause be added in the proposed legislation under which the Centre would be under an obligation to expedite all the pending clearances within one year of the commencement of the legislation.