scorecardresearch
Follow Us:
Friday, May 27, 2022

Post SC caution,MinesMin seeks legal view on mineral concessions

Following the Supreme Court warning that the first-come-first-serve system for granting mineral concessions may be misused “by unscrupulous people”

Written by Priyadarshi Siddhanta | New Delhi |
April 24, 2012 1:09:11 am

Following the Supreme Court warning that the first-come-first-serve system for granting mineral concessions may be misused “by unscrupulous people,” the mines ministry has sought legal opinion on how to treat the applications,which are being currently processed. It has sought the law ministry’s views on whether to process them on the first-come-first-serve mechanism or to introduce any other system.

The apex court,in a judgement on February 2,had observed that a duly publicised auction conducted fairly and impartially is perhaps the best method for granting mineral concessions. “…the methods like first-some-first-serve when used for alienation of natural resources are likely to be misused by unscrupulous people who are only interested in garnering maximum financial benefit and have no respect for constitutional ethos and values”,the SC said.

Mines secretary Vishwapati Trivedi,in a letter to the law ministry on April 19,stated that in the current mechanism mining leases were being granted through the first-come-first-serve basis under the Mines and Minerals (Development & Regulation) Act,1957,as the law does not have any provisions for auctioning.

He,however,said that in the draft MMDR Bill,2011,which is under the consideration of the Parliamentary Standing Committee on steel and mines,specific provisions have been inserted for introducing the auctioning mechanism. According to ministry sources,about 120 applications are in the various stages of processing. Law Minister Salman Khurshid has referred the matter to Attorney General GE Vahanvati for his opinion.

Best of Express Premium

NAS 2021: Punjab schools outshine Delhi, reignite debate over better educ...Premium
Year before Covid: Jobs in corporate sector, LLPs grew, proprietorships fellPremium
Making sense of the GST bonanzaPremium
Falling markets: How much longer, and how to invest until they recover?Premium

The mines secretary wrote that for all minerals extracted,an ad-valorem royalty is charged on the pit-mouth value on the disclosure of the miners “which is very close the market value.” “Hence,in one way the market value of the mineral is being captured in the royalty mechanism and it is pertinent to point out that entire royalty collection goes to the Consolidated Fund of the state and also this pit mouth value is established on a monthly basis and ad-valorem is revised on a three yearly basis” Trivedi said. He said that mere grant of mineral concession (Prospecting Licence) may not always result in financial benefit. In case of mining lease,however,mining operations can be undertaken to win the minerals for commercial exploitation.

Clearing the air

The Supreme Court,on February 2,had observed that a duly publicised auction conducted fairly and impartially is perhaps the best method for granting mineral concessions

The Mines ministry has sought the law ministry’s views on whether to process the applications for mineral concession on first-come-first-serve basis or to introduce any other system

For all the latest News Archive News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
Advertisement