The fate of the much delayed Mining Bill - which is currently being circulated among various ministries and mineral-rich states for their comments after a Parliamentary panel had suggested major modifications in it - seems to be hanging in balance as several states are yet to give their opinion on it and are instead seeking auctioning of mining leases and a hike in royalty rates.
With suggestions yet to be received on the Mines & Minerals (Regulation and Development) Bill 2011 or MMDR Bill by the Mines Ministry, the Government's plans to introduce it in the forthcoming Winter Session (scheduled to begin from the third week of November) looks highly unlikely as Cabinet's approval is also needed before it goes to Parliament.
Sources pointed out that states like Odisha have sought a hike in royalty rates and some other mineral-rich states have asked for mining leases to be auctioned, and therefore have delayed giving their opinion on the Bill, thus delaying its final drafting.
The Bill carried the controversial clause of directing coal and lignite companies to share 26 per cent of their profit with local population which gets affected by their mining activities. However the Parliamentary Standing Committee on Coal and Steel in its report on the Bill which it had submitted in Parliament on May 7 this year, had recommended that this condition be dropped.
Instead of this, the panel had suggested that the companies should contribute an amount equal to the royalty paid to state governments during the fiscal.
At the same time though, the Bill provides for a simple and transparent mechanism for grant of mining lease or prospecting licence through competitive bidding in areas of known mineralisation, and on the basis of first-in-time in areas where mineralisation is not known.
Hike in royalty rates has been an area of contention between the Centre and states, and this too seems to have delayed the comments by the latter on the Bill. The states have been seeking a hike in royalty rates to the tune of 15 per cent to 20 per cent, whereas the Mines Ministry's Study Group constituted on the matter, had in its report finalised three months months back, suggested around 5 per cent hike in royalty for precious minerals like iron ore.
As the report of the Study Group is yet to be okayed by the Mines Ministry, the states have stepped up pressure on it to hike royalty rates more than what has been suggested by the group.
The main reason which has become a headache for the Mines Ministry is that the Parliamentary panel (which is headed by Trinamool Congress MP Kalyan Banerjee) had suggested no more than 130-odd exhaustive modifications in the proposed legislation, due to which the ministry's plan to introduce it during the recently concluded Monsoon session, went haywire.
Now with the Bill - as per standard practice - having been sent to various related ministries as well as mineral-rich states for their comments, chances of its introduction in the Winter session of Parliament too seems unlikely as several states are yet to give their opinion.
Though Mines Ministry officials are putting up a brave face and claimed that they will push for its introduction in the Winter session, the fact is that once the comments from all stakeholders arrive, the proposed legislation would have to be sent for Cabinet's approval, before it goes to Parliament.
With comments not forthcoming and the Parliamentary session just a month away, the Bill's fate seems uncertain. Sources further pointed out that once the Winter session ends, the Government would have to go for Vote on Account as by that time the term of the existing lok Sabha would be nearing its end.
The Mining Bill had been introduced for the first time in Parliament in 2011, however after controversy arose on its 26 per cent profit sharing clause, it was referred to the Parliamentary Standing Committee, which suggested wide ranging changes in it, thus putting the Government's plan of re-introducing it in Parliament, in jeopardy.