MMDR AMENDMENT BILL

MMDR AMENDMENT BILL

Subject : Legislations

Context : Recently, the Lok Sabha has passed a Bill to amend the Mines and Mineral (Development and Regulation) Act (MMDR Act) through a voice vote.

Concept :

Key Changes under MMDR (Amendment) Bill 2021

• It removes the distinction between captive and non-captive mines and seeks to introduce an index-based mechanism by developing a National Mineral Index (NMI) for statutory payments.
• The National Mineral Exploration Trust (NMET) which is entrusted with responsibility of looking after the functioning of the mining sector will be made an autonomous body.
• Sale of minerals by captive mines: It proposes to allow captive miners of both coal and other minerals to sell up to 50 per cent of their production after meeting the requirements of the end-use plant and on paying additional royalty to the state government.
• It proposes to fix additional royalty payments to states for the extension of mining leases for central public sector enterprises.
• Auction by the central government in certain cases: It proposes to empower the central government to conduct auctions or re-auction processes for the grant of a mining lease if a state government fails to complete the auction process.
• Conditions for lapse of mining lease: The Act provides that a mining lease will lapse if the lessee:

is not able to start mining operations within two years of the grant of a lease, or

has discontinued mining operations for a period of two years.

• The Bill adds that the threshold period for lapse of the lease may be extended by the state government only once and up to one year.