MinesMin says delay in MMDR revision holding up approvals

Asks PMO whether it can dispose of applications as per the current law.

Concerned about mounting applications seeking the grant of mineral concessions, the mines ministry has approached Prime Minister Narendra Modi’s office asking for directions on whether to dispose the pending applications as per the current mining law or to wait for an amendment to the legislation.

Union mines secretary Anup K Pujari is learnt to have raised concerns that almost 50 days into his ministry’s 100-day programme, it is still undecided on how to dispose of the pending applications. As per the Mines and Minerals (Development and Regulation) Act 1957, states are mandated to seek the Centre’s approval before executing mining leases to qualified applicants.

But a Bill introduced in the Lok Sabha last year to amend the MMDR Act envisages that the government should auction mineral-bearing areas where the quantum of reserves are known. In case of areas with unknown reserves, the government should stick to granting leases through the ‘first-in-time’ principle. Although the legislation has lapsed with the dissolution of the Lok Sabha, the applications are mounting as they are not being disposed of either by the states or by the Centre.

Voicing his concern, Pujari, in a communication to mines minister Narendra Singh Tomar on June 26, said that substantial number of applications are pending both with the states and the Centre and “the catena of orders by various courts and the report of the Shah Commission have contributed to a sense of uncertainty”.

He said that there are two options before the mines ministry – either to clarify that provisions in the MMDR Act 1957 be utilised to dispose of the applications as opined by former solicitor general GE Vahanvati and the then solicitor general or to amend the Act to do it. Since the Act cannot be amended within 100 days, Pujari has argued that at least a “decision about the direction in which we may proceed is possible”.

It is learnt that the matter came up during Tomar’s meeting with Modi on June 27, wherein the Prime Minister emphasised on ensuring complete transparency in allocation of mineral concessions and roping in investment to intensify exploration of natural resources. Modi is learnt to have asked mines ministry to engage in wider consultations with stakeholders to forge a consensus on the issue.

The lapsed MMDR Bill did have some interesting features which included making the miners stakeholders in developing the areas in and around their leases. It also envisaged making them pay an amount equivalent to royalty for the welfare of those residing in these areas. The legislation favoured setting up of a national mining regulatory authority for major minerals and goaded the states to set up similar authority at their level for minor minerals. It allowed the states to call for applications in notified areas of known mineralisation, while for areas with unknown mineralisation, they may resort to bidding.

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The mineral-rich states increasingly want to have a bigger say in allocation of natural resources and the Centre seems to be willing to oblige.