New Delhi: The Rajya Sabha has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 for making amendments to the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as ‘the Act’) today. The Bill was passed by the Lok Sabha on 28.07.2023 and with the passage of the Bill in Rajya Sabha, the Bill will be sent to the President of India for assent. The MMDR Act, 1957 was comprehensively amended in 2015 to bring several reforms in the mineral sector, notably, mandating a method of auction for grant of mineral concessions to bring transparency in the allocation of mineral resources, for establishing District Mineral Foundation (DMF) for the welfare of the people and areas affected by mining and for establishing National Mineral Exploration Trust (NMET) to give thrust to exploration and for ensuring stringent penalty for illegal mining. The Act was further amended in 2016 and 2020 to address specific emergent issues and was last amended in 2021 to bring further reforms in the sector, such as removing the distinction between captive and merchant mines, transfer of statutory clearances to ensure continuity in mining operations even with change of lessee, removing the restrictions on transfer of mineral concessions, lapsing of rights of non-auctioned concession holders which have not resulted in mining leases to ensure that concessions to the private sector are only granted through auction etc.
However, the mineral sector required certain reforms, particularly for increasing exploration and mining of critical minerals that are essential for economic development and national security in the country. The lack of availability of the critical minerals or the concentration of their extraction or processing in a few geographical locations may lead to supply chain vulnerabilities and even disruption of supplies. The future global economy will be underpinned by technologies that depend on minerals such as lithium, graphite, cobalt, titanium, and rare earth elements. Critical minerals have gained significance in view of India’s commitment towards energy transition and achieving net-zero emissions by 2070. Accordingly, it was proposed to further amend the said Act by enacting the Mines and Minerals (Development and Regulation) Amendment Bill, 2023. With the worldwide focus on critical minerals, the amendment introduces major reforms in the mining sector which include the omission of 6 minerals from the list of 12 atomic minerals specified in Part-B of the First Schedule of the Act, namely, Lithium bearing minerals, Titanium bearing minerals and ores, Beryl and other beryllium bearing minerals, Niobium and Tantalum bearing minerals and Zirconium bearing minerals. Empowering Central Government to exclusively auction mineral concessions for critical minerals specified in Part D of the First Schedule of the Act. Revenue from these auctions will accrue to the concerned State Government. and introducing exploration licence for deep-seated and critical minerals.
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