Nellore: No distinction between captive, non-captive mines

No distinction between captive, non-captive mines

No distinction between captive, non-captive mines


Amendment to MMDR Act is in force: Minister Prahlad Joshi

Nellore: Minister of Coal, Mines and Parliamentary Affairs Prahlad Joshi informed the House on Monday that the Parliament has amended the Mines and Minerals (Development & Regulation) Act, 1957 (MMDR Act) through the MMDR (Amendment) Act, 2021 which has been notified in the Official Gazette on March 28.

Through the said amendment, the distinction between captive and non-captive mines has been removed by providing that no mine shall be reserved for captive purpose in auctions from the date of notification of the amendment.

Further, the amended Act allow captive mines including existing captive mines, to sell up to 50 percent of minerals produced in a year after meeting the requirement of linked plants on payment of additional amount as specified in the 6th schedule of the Act. This provision is applicable for Coal Mines also, he explained.

The transfer of mining lease or composite licence is allowed under Section 12A of the MMDR Act.

The Minister stated that it was decided to formulate an index-based mechanism by developing a National Mineral Index (NMI) for calculation of various payments as well as determination of statutory payments for future auctions. The proposal has been approved by the Cabinet on January 13, 2021 and accordingly, Ministry of Mines vide order dated April 4, 2021, has constituted a committee to develop National Mineral Index (NMI) for individual minerals.

Ministry of Mines has received representations from various state governments for enhancing royalty on minerals.

The Minister informed there is no provision in the MMDR Act, which mandates the Central government to revise the rates of royalty for major minerals immediately after completion of three years of last revision of rates. Further, Ministry of Mines has constituted a committee on October 27, 2021, for reviewing of rates of royalty of those minerals where royalty rate is calculated on per tonne basis, Prahlad Joshi informed the House.

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