Mines ministry working on amendments to MMDR Act

The Union ministry of mines is working on a list of amendments to the existing Mines and Minerals Development and Regulation (MMDR) Act to facilitate the recently cleared mineral policy. A senior official in the ministry informed The Indian Express that meetings have been held with state governments who have voiced concerns over certain clauses in the policy which they consider diminishes the powers of the state governments.

“We are on the job and have already held two meetings at various levels with governments of mineral rich states,” mines secretary J P Singh said. “These meetings are aimed at clarifying various provisions in the new policy but there is going to be no great revision or re-opening of the policy per say. The bill containing various amendments to the act needs to be produced in the parliament as without the amendments the new policy is merely a statement of intent.”

State governments, especially Jharkhand, Orissa, Karnataka and Chattisgarh, have shown reservations on issues like seamless transfer of leases from reconnaissance lease to prospecting and then as a mining lease, fearing that the automatic route seeks to take away their powers.

Singh however, sought to clarify any such doubts. “The intention is not to diminish somebody’s powers but to ensure that more investments come into the sector. Ultimately we have to look at the welfare of the country and not some individual,” he said. “We have to create a mechanism of rewarding somebody who has invested in prospecting a region and hence automatic leases are important. Otherwise there will be no investment in prospecting which can be a costly and risky affair.”