The Mines And Minerals (Development and Regulation) Bill, 2011

Current Status: Pending; Introduced in Lok Sabha on December 12, 2011

Ministry: Mines

The Mines and Minerals (Development and Regulation) Bill, 2011, prepared by the Ministry of Mines to replace the existing Mines and Minerals (Development and Regulation) Act, 1957 approved by the Cabinet and the Bill has been introduced in Lok Sabha on 12th December, 2011. The Bill has been prepared after several rounds of consultation and workshop with all Stakeholders. The Bill seeks a complete and holistic reform in the mining sector with provisions to address issues relating to sustainable mining and local area development, benefit sharing mechanism to the people affected by mining operations.

The Bill, also aims to ensure transparency, equity, elimination of discretions, effective redressal and regulatory mechanisms along with incentives encouraging good mining practices, which will also lead to technology absorption and exploitation of deep seated minerals.

Salient Features

  • The Bill requires every person to obtain a license or lease for carrying on mining or related activities
  • The Bill proposes to introduce a new instrument High Technology Reconnaissance-cum-Exploration License
  • Two methods of granting a mineral concession – competitive bidding where mineralisation is established and first-come-first-serve otherwise have been proposed
  • In each district, a District Mineral Fund (DMF) will be established
  • A mining leaseholder will pay an annual amount to the DMF for the benefit of affected persons.  This will be equal to 26 per cent of profits in case of coal, and royalty paid during the year for other minerals.
  • The Mines & Minerals (Development and Regulation) Bill, 2011 provides for a simple and transparent mechanism for grant of mining lease or prospecting licence through competitive bidding in areas of known mineralisation, and on the basis of first-in-time in areas where mineralisation is not known.

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