Narendra Singh Tomar: Mining rules bill may be tabled in winter session

Bhubaneshwar: The government is preparing to introduce a bill to amend mining rules in the next session of Parliament, Union Minister for Steel and Mines Narendra Singh Tomar said.
While Tomar made this announcement at an event in Bangalore, a person with knowledge of the government’s plans said a notification will be moved soon for the setting up of a committee that will decide the required changes in the bill.

The proposals being considered include the possibility of introducing auction to allot mining leases.The mining industry, through bodies such as the Federation of Indian Mineral Industries and Confederation of Indian Industry, has been lobbying for a smooth transition from reconnaissance to prospecting and mining leases, and approval to sell leases for a profit.

These provisions, industry executives argue, will encourage discovery and more realistic estimate of India's mineral resources. Speaking at the Mining and Exploration Convention and Trade conference, the minister said the government is trying to change the image of the mining sector.

According to a press release, he said the government would like to bring in transparency, simplification and development through amendments in regulations that would make mining more responsible without interventions from courts and commissions.

In the past few years, mining has gained much notoriety, with allegations that they had flouted all the laws under the Mines and Mineral Development and Regulation Act (MMDR Act), Environment Protection Act, Forest Act and rules that governed the business.

Stakeholders, such as governments of mineral-rich states like Karnataka, Goa and Odisha were accused by fact-finding commissions such as the one headed by MB Shah of turning a blind eye to such violations.

While the Supreme Court’s orders stopping mining over irregularities, first in Karnataka and then in Goa, have been lifted, the sector is still limping with key issues remaining unresolved.

Tomar, who is also the minister for labour, said he believes mining, after agriculture, to be a sector with considerable potential to create jobs. The ministry is also likely to encourage underground mining, which it believes would cause less environmental damage. The mining sector contributes 1.3 per cent of India’s gross domestic product, according to a CII presentation to the ministry.

The industry wants prospecting licences to be granted on a first-come first-served basis, and not competitively. It also wants an exemption of captive mines from auction when they come up for renewal, since they are linked to capital-intensive business of largely steelmaking.