All mineral concessions will be auctioned, the government said on Tuesday January 13, 2015.
All mineral concessions will be auctioned, the central government said on Tuesday January 13, 2015.
The MMDRA ordinance that the central government promulgated on January 12, 2015 aims to bring in transparency and removing discretion in allocation of mines including coal and iron ore. The government said, "All mineral concessions are granted by the respective State Governments. They will continue to do so but all grant of mineral concessions would be through auctions, thereby bringing in greater transparency and removing of discretion."
This would also mean greater revenues for the government from the auction of these natural resources.
In its bid to keep a check on corruption in mine allocation, the government said that there won't be any renewals and all mines will be carry a uniform lease period of 50 years, from 30 years earlier. Post that, the mine shall be auctioned.
The move has been a result of the massive coal scam unearthed during the time of the UPA-II, the government said that it will also look to set up special courts, if necessary, for offenders.
The government said that the move will give an impetus to the mining sector as it has been suffering due to the second and subsequent renewals remaining pending.
Also read: Government puts 40 more coal mines on offer for auction
It said, "Government has kept in mind that interest of Mining Lease holders should not be adversely affected. Therefore, Sub-Section 5 and 6 of Section 8(a) of the Ordinance provides that the Mining Leases would be deemed to be extended from the date of their last renewal to 31stMarch, 2030 (in the captive miners) and till 31st March, 2020 (for the merchant miners) or till the completion of the renewal already granted, if any, whichever is later."
A District Mineral Foundation would also be set up in areas where mining takes place to address the concerns of the local population and people affected by mining.
Elimination of delay
Earlier, state governments had to take prior approval from the central government before granting any mineral concession. This prior approval has been done away with making the process faster and eliminating delays arising out of it.
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