The Mines Ministry, in the Bill to amend the Mines and Minerals (Development and Regulation) Act, has proposed competitive bidding mechanism for allocation of mines for all minerals .

According to the draft of the Mines and Minerals (Development and Regulation) (Amendment) Bill, 2014, for bulk minerals such as iron ore, limestone, manganese, bauxite and others, there will be no requirement for a prospective licence and any gaps in the knowledge relating to such minerals will be filled by the State Government agencies. Such minerals, which will be notified at a later date, account for nearly 85 per cent of the country’s total mineral production.

The Ministry has put the draft amendments in the public domain on Monday and sought comments by December 10, 2014.

For non-notified minerals, a combined prospecting-cum-mining licence will be given via competitive bidding process. The successful bidder will conduct the exploration and prospecting work at their own risk and cost. The bidders will also have to pay either a production share or payment linked to the royalty.

The terms and conditions for the auction process will be given by the Central Government.

Transfer of the mining lease or the combined prospecting-cum-mining lease will also be allowed by letting the State Government know in advance. The State Government will also be allowed to charge fees for any such transfer.

Mineral Fund

The Bill also proposes to set up a District Mineral Fund in every district affected by mining. This will be funded by an additional levy related to the royalty and will be decided by the State Government.

State Governments will also be empowered to set up special courts for trial of illegal mining cases.

Taking forward from a recommendation of the Justice MB Shah Commission report on illegal mining, the Bill proposes to allow Central Government to frame timelines for processing the grant of mineral licenses and their renewals. The Centre can also give directions to the State Government for conservation of mineral resources for any policy matter in the national interest.

If approved in its current form, the Bill will also give powers to the Centre to pass revision orders within the timelines prescribed if any party is aggrieved by the State Government decision in issuance and renewal of licenses.

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