Last Updated: 5/21/2025 11:39:00 PM
India's President MrPranab Mukherjee has given his assent on mines ordinance that paves the way for auctioning of mines containing minerals such as iron ore and bauxite. The Government has promulgated an Ordinance on Monday, the 12th January, 2015 (MMDR Amendment Ordinance, 2015) under Article 123(1) of the Constitution. This amends certain provisions of MMDR Act, 1957. The salient provisions of the Ordinance are as follows: · Amendment to Section 5(1)} the previous approval of the Central Government will not be required for grant of mineral concession except for Atomic Minerals, Coal and Lignite · Section 8 A (1), (2), (3) and (4) Uniform lease period of 50 years; no renewals; auction at the end of lease period; will solve issues arising out of all SC judgments on second and subsequent renewals · Section 8 A (5) and 8 A (6) Transition period of minimum 15 years for captive mines and 5 years for other mines; no sudden stoppage as a result of amendment · Section 9 (B) District Mineral Foundation to take care of people and areas affected by mining · Section 9 (C) National Mineral Exploration Trust to be set up for impetus to exploration · Section 10 B &11 All mineral concessions will be granted only through auction · Section 10 B & 11Direct auction for mining leases for bulk minerals and auction of prospecting licenses cum mining leases for deep seated minerals. Amendment to Section 11 (B) Central Government to frame separate rules for atomic minerals · Section 12 (A) Easy transferability of concessions obtained through auctions so as to attract private investment and FDI · Section 17 A (2A) Enabling powers for reservation for the public sector to continue · Section 20 A Central Government empowered to prescribe deadlines for various processes and to issue binding directions to States · Amendment to Section 21(1) & (2) Higher penalties and jail terms for offences; special courts may be constituted, if necessary · Amendment to Section 30 Powers to Central Government to intervene even where State Governments do not pass orders within prescribed time lines; this will eliminate delay Source - Strategic Research Institute, Steel Guru
