NEWS

Cabinet approves Amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 for specifying rate of royalty in respect of certain minerals

DETAILS

HOW WILL AMENDMENT HELP

• Specifying rate of royalty in respect of Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite and Molybdenum
• Ensure auction of mineral blocks in respect of Glauconite, Potash, Emerald, Platinum Group of Metals, Andalusite and Molybdenum thereby reducing import of these minerals, generating empowerment opportunity in the mining sector as well as manufacturing sector which will help in ensuring inclusive growth of a large section of the society
• Lead to import substitution in respect of many important minerals for the economy of the country thereby saving valuable forex reserves. It will reduce country’s foreign dependency through the local production of minerals

MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957

• Regulates the mining sector in India
• Lays down rules for obtaining and issuing mining leases for mining operations
• Both the Central and State Governments are responsible for the management of mineral resources
• Captive Mines – Under the Act of the year 1957, the Central Government can reserve any mine (except atomic mineral) for a particular end use while leasing it through auction process.

BENEFITS OF ACT

• Transparency will increase as the state governments at times lacked transparency in the auction process conducted by the states to the person of their choice. Organizing the auction process by the Center will increase transparency.
• Production will increase. By which India’s energy security and other important needs can be met. By increasing the production of coal, India will be able to conserve energy security as well as foreign exchange.
• Ease of doing business will increase. Incorporation of new technology to boost production.
• To achieve the Sustainable Development Goals in the mining sector, state openness, fairness, better regulation, accountability, inclusive policy formulation, the interest of the local community, national needs and the level of trust among other stakeholders should be increased.