New boost to mines and minerals sector
New Delhi, March 25: Mines and Minerals contribute huge infrastructure in India. Other than natural gases, petroleum, and atomic minerals, for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc. are the important minerals which play important role in the infrastructure sector. The Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill 2021 with Rajya Sabha giving its nod on Monday.
The Rajya Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2021 that will do away with the distinction between the captive and non-captive mines, allow captive mines to sell up to 50% of the minerals excavated during the current year.
Mines Minister Pralhad Joshi said that more than 55 lakh employment will be generated in the country with the implementation of these reforms. The Minister clarified that all revenue generated from the mining activities will be utilized by the State only. However, he said, the Bill empowers the central government to specify a time period for completion of the auction process in consultation with the state government.
It empowers the Central Government to issue directions regarding the composition and utilization of funds maintained by the District Mineral Foundation.
The Bill which has already been cleared in the Lower House seeks to amend the Minerals (Development and Regulation) Act, 1957 and provides for the removal of the distinction between captive and merchant mines. The legislation provides that captive mines other than atomic minerals may sell up to 50 percent of their annual mineral production in the open market after meeting their own needs.
“With its passage in Rajya Sabha, Mines and Minerals (Development and Regulation) Amendment Bill, 2021 stands passed by both Houses of Parliament. It is a step towards attaining mineral security of the nation," coal and mines and parliamentary affairs minister Pralhad Joshi in a tweet on Monday.
Speaking on the Bill, Mines Minister Pralhad Joshi said that it has been brought to reform the mining sector in the country. The country has large reserves of several minerals but only 45 percent were tapped so far which have resulted in dependence on imports. Terming the bill historic, Minister said it will increase the production level of minerals, generate employment, increase revenues and ensure private participation in the exploration and mining activities.
The Minister said the bill will also aid Foreign Direct Investment and technologies in the mining sector. He said, Government is proposing to make National Mineral Exploration Trust NMET an autonomous and professional body, which would provide funds for exploration. He said Government is committed to bringing a transparent system. Joshi said, it is a progressive bill and will bring a lot of change.