To give additional impetus to the non-coal, non-fuel mining sector, the mines ministry has proposed one other set of reforms together with allotting with the necessity for the states to acquire Centre’s prior approval for awarding composite licence (prospective-cum-mining) for blocks bearing bauxite, limestone, manganese and iron ore by the necessary public sale route.
The ministry proposes to get rid of the part 10B (2) of the governing Mines and Minerals (Development and Regulation) Act that mandates the states to hunt prior approval because it feels acceptable “to remove the redundant process” since solely reconnaissance survey (G4) degree of exploration is required for initiating public sale course of for composite licence (CL).
Through plenty of reforms initiated final 12 months, the Centre allowed public sale of blocks for CL at G4 degree of exploration as a substitute of beforehand prescribed G3 (preliminary exploration) degree.
“As the level of exploration has been reduced at the CL stage, it would be appropriate to remove the redundant process of obtaining previous approval of the central government before putting a block for auction of CL. This will enable the state governments to put blocks in auction for CL at a faster pace. Accordingly, section 10B (2) of the Act may be amended,” the mines ministry mentioned in a word put for stakeholders’ remark.
Since the necessary public sale regimed kicked in with the modification of the MMDR Act, 1957, round 180 mineral blocks have been auctioned thus far.
The mines ministry additionally proposes to get rid of the requirement of forest clearance for exploration, agreeing to the suggestion of a high-level committee of the NITI Aayog that had really helpful,” there shouldn’t be any requirement of forest clearance for enterprise exploration.”
The ministry of forest and local weather change had, in a session paper, issued in October final 12 months additionally proposed, “significantly in such actions the place the influence shouldn’t be perceptible, the provisions of the Act (Forest Conservation Act, 1980) is probably not relevant.
“In order to enable auction of more blocks and to enhance production of minerals, more exploration is required to be conducted. Mining operations can be undertaken in an area only after the existence of mineral is established in the said area. Necessary forest clearance would anyway be taken before start of mining operations,” the mines ministry word mentioned.
The mines ministry can also be proposing to permit captive miners to permit promoting of fifty% of their annual manufacturing with none restriction. Brought in by MMDR Amendment 2021, the federal government had allowed captive miners to promote as much as 50% of the annual manufacturing “after meeting the requirement of linked plant.”
The situation connected is being interpreted as if the sale can be allowed solely after the requirement of the end-use plant is fulfilled.
“Also, in cases where the linked end-use plant is not ready or is shut down due to some reasons for a short period, such as maintenance or if there is a fall in demand of the end product, the miner cannot continue the production and sale of minerals. Thus, the objective of ensuring optimal mining of mineral resources and facilitating increase in production and supply of minerals get defeated,” the mines ministry argued for selecting to omit the conditionality and finish with the paradox.
Source: www.financialexpress.com”