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President Promulgates Mining Ordinance
Jan 15, 2015

The Government has promulgated MMDR Amendment Ordinance, 2015 under Article 123(1) of the Constitution. This amends certain provisions of MMDR Act, 1957. The promulgation of Ordinance became necessary to address the emergent problems in the mining industry. In the last few years, the number of New Mining Leases granted in the country has fallen substantially. In addition, second and subsequent renewals have also been affected by Court judgments. As a result, the output in the mining sector has come down drastically, leading to import of minerals by users of those minerals.

Salient Provisions

  • All mineral concessions will be granted only through auction.

  • Direct auction for mining leases for bulk minerals; auction of prospecting licences-cum-mining leases for deep-seated minerals.

  • Uniform lease period of 50 years; no renewals; auction at the end of lease period; will solve issues arising out of all Supreme Court judgments on second and subsequent renewals.

  • Transition period of minimum 15 years for captive mines and 5 years for other mines; no sudden stoppage as a result of amendment.

  • Central Government empowered to prescribe deadlines for various processes and to issue binding directions to States.

  • Central Government to frame separate rules for atomic minerals.

  • The previous approval of the Central Government will not be required for grant of mineral concession except for Atomic Minerals, Coal and Lignite.

  • Enabling powers for reservation for the public sector to continue.

  • Higher penalties and jail terms for offences; special courts may be constituted, if necessary.

  • District Mineral Foundation to take care of people and areas affected by mining.

  • National Mineral Exploration Trust to be set up for impetus to exploration.

  • Easy transferability of concessions obtained through auctions so as to attract private investment and FDI.

  • Powers to Central Government to intervene even where State Governments do not pass orders within prescribed time lines; this will eliminate delay.


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